Jaguar Gets Support for RIM Management Changes; BlackBerry Outage Hits North America
October 12, 2011 12:51 PM
comment(s) - last by
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
10/13/2011 4:13:20 PM
What? You say thier market is growing internationally ? OK fine, lets go with that, you are correct. Now....
The bet: By October next year, there won’t be any way to hide behind creative data reporting and "pick and choose" facts. RIM’s numbers will be down all over, sales, marketshare, everything everywhere and it will be undeniable.
Come on, stand behind what you say or just shut up.
"So, I think the same thing of the music industry. They can't say that they're losing money, you know what I'm saying. They just probably don't have the same surplus that they had." -- Wu-Tang Clan founder RZA
Apple Achieves One Million iPhone 4S Pre-orders During First Day
October 10, 2011, 10:00 AM
RIM Q2 Earnings Are Bleak, Q3 Expectations are Higher
September 15, 2011, 5:34 PM
RIM for Sale? Amid Plunging Market Share Investors Say Make it Happen
September 7, 2011, 4:01 PM
RIM Shows Off Three New Blackberry Curve Smartphones
August 23, 2011, 3:36 PM
RIM Appears to be Biggest Loser in Mobile App War
June 27, 2011, 5:43 PM
HTC One Leaks: LED Smart Cover, Carrier Models, Google Play Ed.
March 11, 2014, 5:30 PM
New HTC One Camera Details Revealed via Leaked Ad
March 11, 2014, 9:20 AM
India Could Rock Google With Its Biggest Antitrust Fine Yet -- $5B USD
March 10, 2014, 8:12 PM
Apple Releases iOS 7.1, The First Major Update to Its "Rethought" Mobile OS
March 10, 2014, 1:52 PM
BlackBerry CEO Jokes that iPhone Users are "Wall Huggers"
March 10, 2014, 12:20 PM
Average Mobile Phone Bill in U.S. is Growing Despite Competition
March 10, 2014, 10:25 AM
Most Popular Articles
Bitcoin King Pt. II: Mt. Gox's Dictator Karpelès Proves Tragically Flawed
March 7, 2014, 1:12 PM
Bitcoin King: Mt. Gox CEO Mark Karpelès' History of Arrests, Firings
March 5, 2014, 9:05 AM
Windows 8.1 Update 1 Leaked Early
March 7, 2014, 9:30 AM
Apple Won't Let UK Sons Unlock Their Deceased Mother's iPad
March 6, 2014, 12:44 PM
Lt. Gen. Davis Says Next Gen USAF Bomber Will "Of Course" Surpass $550M/Unit
March 6, 2014, 9:45 AM
Latest Blog Posts
Tesla vs. BMW: Who Has the Safer EV?
Feb 1, 2014, 2:56 PM
Justice Leaks Details of Next HTC One Two Flagship Phone
Dec 5, 2013, 4:04 PM
Global Cyber Espionage Concerns Reveal Growing Cyber Armies
Nov 29, 2013, 11:04 AM
Is The Period Becoming an Expression of Anger?
Nov 26, 2013, 2:02 PM
NSA and Congress -- You Will Never Kill the Constitution, It's an Idea
Nov 10, 2013, 2:00 PM
More Blog Posts
Copyright 2014 DailyTech LLC. -
Terms, Conditions & Privacy Information