BlackBerry co-founders show interest in acquiring firm

Co-founders of Canadian handset maker BlackBerry, Mike Lazaridis and Douglas Fregin, have evinced interest in acquiring the struggling smartphone maker.
Both the co-founders have entered into a preliminary arrangement for bidding to acquire the Ontario-based firm.
Lazaridis had held the position of President, Co-Chief Executive Officer and Co-Chair at BlackBerry, while, Fregin had worked as its Vice President of Operations.
"Lazaridis and Fregin are interested in pursuing a joint bid for the possible acquisition of the company by means of a transaction with the goal of stabilising and ultimately reinventing the company based on a plan developed by them," BlackBerry said in a filing to the US Securities and Exchange Commission (SEC) yesterday.

The development follows months of speculation of a buyout with BlackBerry announcing in September of signing a letter of intent with a consortium headed by Prem Watsa-led Fairfax Financial Holdings to acquire it for USD 4.7 billion.
The filing, however, does not indicate if the co-founders are planning to present an alternative to the USD 9 per share bid by Fairfax.

While, Lazaridis and its affiliates ownership stake (including any options, warrants, convertible securities or similar securities) in BlackBerry consists of ownership of 29,767,887 shares, Fregin and his affiliates own 11,912,186 common shares in the firm.
Fairfax controls about 10 per cent stake in BlackBerry.

The smartphone maker's total outstanding shares stood at 524 million as of June 30, as per data available with Nasdaq.
The filing further said that "2381479 Ontario Ltd, a firm controlled by Mike Lazaridis (together with its affiliates and associates) and 1258702 Ontario Ltd, a company controlled by Douglas E Fregin (together with its affiliates and associates)" had entered into an agreement on the issue.
"The parties agree to work together during the term of this Agreement to submit a joint bid with respect to the transaction," the filing added.
Goldman, Sachs & Co, Centerview Partners LLC, Gibson, Dunn & Crutcher LLP, Goodmans LLP and other advisors have been engaged by Lazaridis and Fregin in connection with the review of the transaction.

Lazaridis will be managing and directing the advisors on behalf of the parties in connection with the bid and will do this in consultation with Fregin. He will also represent the parties to communicate with any person in connection with the transaction.
"The parties agree that if the transaction is successfully completed, the board of directors of the company (or any successor entity) will include Lazaridis, as Chairman and a director appointed by Fregin," the filing said.