The "Canadian Warren Buffett" comes from India and wants to save BlackBerry - Público.pt

Consortium to buy the manufacturer is still looking for funding. Strategy is to take the company’s stock.

Prem Watsa, the man who leads the semi-secret consortium that proposed buying the BlackBerry, has been described as the “Canadian Warren Buffett”, an allusion to the iconic American tycoon. Watsa is not in Canada, but it was in this country who made a fortune and created the background Fairfax Financial Holdings, through which is looking for 4700 million (3500 million) to give a second life to the phone maker fallen on disgrace.

Watsa was born in India in 1950 and graduated in Chemical Engineering. Then emigrated to Canada and took an MBA. Had his first job with an insurance company, which was almost to the founding, in 1985, the company now presides. “It is seen as a solid person, is very perceptive and reserved,” said Canadian historian Alistair Sweeney, who in 2009 wrote a book on the BlackBerry. Sweeney notes that the millionaire has been critical of the management of the BlackBerry and has a good relationship with the founder (and former co-CEO) Mike Lazaridis. “It is also a Canadian at heart, who wants to keep the company operating in Canada.”

Fairfax is already the largest shareholder of the BlackBerry, with 10% of the shares, and Watsa was on the board between January 2012 and August this year, the month in which the manufacturer announced it was looking for buyers and the manager came out, due to potential conflicts of interest.

According to the annual report 2012, the fund had revenues of Fairfax eight billion dollars and profits of 530 million. Does business primarily in the area of ??health insurance and housing and owns operating companies in North America, Brazil, the UK and Poland, as well as in Asian markets: Hong Kong, Singapore and Malaysia. Some fund companies have more than a thousand workers. Other, less than a hundred.

Watsa has had a strategy of buying companies at a bargain price and wait long enough for the investment to pay dividends. In 2011, a consortium led American who injected 1100 million in Bank of Ireland, the second largest in Ireland and at the time was about to be fully nationalized following the financial crisis and the collapse of the housing market. The consortium was with a 35% stake, with the shares to avail then every dime. The investment is now worth double.

Speaking to Canadian newspaper The Globe and Mail made in September, Watsa says not “underestimate the problems of short-term” and provides clues about what might be the future of BlackBerry, “Can you compete in the consumer market with Apple , Samsung and Android? There, we think this is very difficult. But in the business market has huge advantages. “

Partner secret

are not known partners in the consortium Fairfax buyer. A few weeks ago, in an interview with Reuters, Watsa said only that there were strategic partners to the business of mobile phones, but one or two technology companies could still join.

preliminary agreement signed between the two companies gives Fairfax possibility of quitting the business until the beginning of next month without penalty (during this period, will be to examine the accounts of the BlackBerry). But if the BlackBerry back, you must pay at least 30 cents per share, or about $ 157 million – a figure that, according to analysts polled by Bloomberg, is sufficient to rule out other proposals purchase, while Fairfax has nothing to lose. The consortium may also decide to lower the value of the offer. In this case, the BlackBerry can retreat without making payment.

At Reuters, Watsa said he believes will get the money and referred to the BlackBerry as “one of the great success stories in Canada”, adding that he “confidence that will be successful again.” Seem to be less confident investors that the shares of BlackBerry fallen since September 23, the day the deal was announced possible. At that time, the price was nearly nine U.S. dollars offered by Watsa, who intends to withdraw the multinational purse. In closing this Friday, the value was about $ 7.7.

Regardless of

track record of success, give back to the BlackBerry will not be an easy task. At the end of last month, the company had disastrous results for the three months ending in August. Suffered losses of 965 million dollars (714 million euros) and revenue 1573 million (1160 million), which represents a decrease of 49% compared to revenues for the same period of 2012.

The vast majority of the losses for mobile phones is the Z10 model not sold. The Z10 has a touch screen and has no keyboard. It was one of the two devices presented earlier this year, along with a new operating system, a move failed to revive the company.