Jaguar Gets Support for RIM Management Changes; BlackBerry Outage Hits North America
October 12, 2011 12:51 PM
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Jaguar is calling for a new RIM CEO to replace Lazaridis and Balsillie, and wants RIM to break up into separate public companies or be put up for sale as a whole
Just last month,
were suggested in regards to the sale of RIM's intellectual propoerty as well as an executive shake-up. Now, Canadian merchant bank Jaguar Financial Corp. is pushing Research In Motion (RIM) to make some hefty changes in the way of a new chief executive and putting the company up for sale as a whole or in parts -- and its ideas are gaining support.
RIM, maker of BlackBerry, is currently run by President and co-CEO Mike Lazaridis and co-CEO Jim Balsillie. The company has had a hard time keeping up with competitors like Apple, Google, Microsoft, HTC and Samsung when it comes to mobile devices and mobile operating systems because of its slow response to a constantly-changing market. Its stock hit a "52-week low" of $19.29 on October 4 after hitting a high of $70.54 in February.
In addition, lukewarm reception to the
bleak quarterly results
, and business' decision to escape RIM's proprietary BlackBerry email service have not helped RIM in this matter.
For the above-mentioned reasons, Jaguar, which has acquired more shares of RIM since the stock price began to drop, is now calling for a new RIM CEO to replace Lazaridis and Balsillie. It also wants RIM to break up into separate public companies or be put up for sale as a whole.
According to Jaguar, a minimum of 8 percent of stockholders agree with its ideas and are calling for a company shake-up as well.
"Everybody is in support of a sale of RIM or another value creative transaction...like splitting the company into separate public companies -- a network company, a device company and a patents company," said Vic Alboini, Jaguar chief executive. "It's time for RIM to bring in a transformational leader and a respected independent chairman."
But Lazaridis and Balsillie will likely not take this sitting down. Between the two, Lazaridis and Balsillie hold over 10 percent of the stock and have a crucial role in the company's decision-making as chairman of the board.
Jaguar said it has spoken to 20 of the larger institutional holders so far out of 1,000 stockholders, but plans to continue speaking to more.
"We haven't adopted a call-center approach," said Alboini. "It has been very highly targeted, but now that we've got the response, you know we are going to go out and see how many more we can get."
According to Alboini, Jaguar can call a shareholders meeting with 8 percent support, which would force RIM's board to listen to its demands.
RIM saidover 90 percent of its voting shares had supported the re-election of directors that includes Lazaridis and Balsillie during the company's annual meeting in July.
In other RIM-related news,
continue to be disrupted in Europe, Africa, the Middle East, India, and now, North America as well. The outage is going on three days now in some areas, and could affect 70 million BlackBerry users outside of North America, according to RBC analysts Mike Abramsky and Paul Treiber.
"The messaging and browser delays...were caused by a core switch
within RIM's infrastructure," said RIM. "As a result, a large backlog of data was generated and we are now working to clear that backlog and restore normal service."
RIM originally said the services were restored Tuesday, but have now said they are still working on the problem and haven't mentioned how long it would take.
The outage, which has now spread to North America as well, could negatively affect RIM competition-wise with the
new iPhone 4S
launching in only two days.
This article is over a month old, voting and posting comments is disabled
10/12/2011 2:25:48 PM
Your hot air ran out quick tho
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