Fairfax unable to raise funds for BlackBerry bid

Prem WatsaWith BlackBerry’s due diligence period only two days away reports are coming in that Fairfax Financial has failed or is struggling to come up with the proper funds to fully finance the purchase of BlackBerry. Reason for inability to come up with funds: “banks declining to participate on concerns that the smartphone maker will not be able to reverse its fortunes, according to people familiar with the matter”.

Some business analyst go as far as saying it is not BlackBerry that banks are not willing to invest in rather that Fairfax just simply does not have a proper business plan set in place for how they will try to reverse BlackBerry’s financial situation. With that being said BlackBerry’s founder and former CEO is reportedly getting on in a joint bid with Cerberus Capital, time will tell what will happen, we shall see this coming Monday what the outcome will be.

“No one has really committed themselves to any group because none of the people that have been circling around BlackBerry have come up with a very convincing business plan,” Alberta Investment Management Corp’s head Leo de Bever said on BNN Television, earlier this week.