Feeds

Adaptec cancels AGM

Steel Partners soap opera lurches on

Maximizing your infrastructure through virtualization

Beleaguered Adaptec has cancelled its November 10 annual general meeting and legacy board chairman Joe Kennedy has apparently resigned.

It appears Steel Partners has won the proxy war and has sufficient shareholder consents to carry out its plans of removing Adaptec CEO Sundi Sundaresh and Robert Loarie from the board, reducing its member count from nine to seven and giving it full voting control of the board.

Activist investor Steel Partners has been an Adaptec stockholder with board representation for over a year. It has been waging a struggle to get Adaptec to return more value to shareholders against the wishes of the so-called legacy directors. These directors voted to remove Steel Partners president Jack Howard from the Adaptec board chair position in September and install Joe Kennedy from their own ranks as chairman.

Steel Partners wrote to investors soliciting written consent to three proposals, which included cutting the number of board seats to seven and ejecting Sundaresh from the board. It claimed the support of more than 50 per cent of the shareholders a few days ago. Adaptec announced dismal quarterly results on October 29 which probably sealed the shareholders' decision in favour of Steel Partners. On November 2, Kennedy said he would resign the chairman's position if the proxy vote claim by Steel Partners was certified.

That appears to be the case as the Adaptec website now lists Jack Howard as chairman. The company has also issued a statement saying it is cancelling the AGM "as a result of certain developments relating to the Consent Solicitation commenced by Steel Partners." There is no re-scheduled date.

Our reading of this is that Steel Partners now has board control and Sundaresh and Loarie will leave the board. It's probable that Sundaresh will then be dismissed as CEO with an interim replacement. A rescheduled AGM might announce a shareholder dividend payout or share re-purchase scheme. We'll then see if Adaptec is put up for sale or used as an acquisition vehicle by Steel Partners. Let the fun and games commence. ®

The Power of One eBook: Top reasons to choose HP BladeSystem

More from The Register

next story
Sysadmin Day 2014: Quick, there's still time to get the beers in
He walked over the broken glass, killed the thugs... and er... reconnected the cables*
Auntie remains MYSTIFIED by that weekend BBC iPlayer and website outage
Still doing 'forensics' on the caching layer – Beeb digi wonk
SHOCK and AWS: The fall of Amazon's deflationary cloud
Just as Jeff Bezos did to books and CDs, Amazon's rivals are now doing to it
BlackBerry: Toss the server, mate... BES is in the CLOUD now
BlackBerry Enterprise Services takes aim at SMEs - but there's a catch
The triumph of VVOL: Everyone's jumping into bed with VMware
'Bandwagon'? Yes, we're on it and so what, say big dogs
Carbon tax repeal won't see data centre operators cut prices
Rackspace says electricity isn't a major cost, Equinix promises 'no levy'
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Securing Web Applications Made Simple and Scalable
Learn how automated security testing can provide a simple and scalable way to protect your web applications.