Weird inbounds play

[bigbeardedbryan]

JV boys game, working alone because AD messed up scheduling.

White has an A/P throwin along the sideline. Blue has already been warned for delay (and picked up an intentional foul in the process for striking an inbounding player).

I bounce the thrower the ball and step back, ready to chop time. Then he does something silly. He reaches the ball across the boundary line, right in front of the blue defender, just as if he's about to start a dribble and go around him.

Blue sees the ball in front of him and instinctively reaches for it. Both players simultaneously possess the ball and I blow the whistle for the held ball... then my brain freezes.

How should this be handled? Remember, white had the ball for an A/P throwin. I've bounced this around a few heads in our group and gotten an array of answers, including one that I couldn't have a held ball because white was out of bounds with possession (but I don't buy that). Thanks!