Feeds

Adaptec cancels AGM

Steel Partners soap opera lurches on

Next gen security for virtualised datacentres

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. ®

5 things you didn’t know about cloud backup

More from The Register

next story
The Return of BSOD: Does ANYONE trust Microsoft patches?
Sysadmins, you're either fighting fires or seen as incompetents now
Oracle reveals 32-core, 10 BEEELLION-transistor SPARC M7
New chip scales to 1024 cores, 8192 threads 64 TB RAM, at speeds over 3.6GHz
Microsoft: Azure isn't ready for biz-critical apps … yet
Microsoft will move its own IT to the cloud to avoid $200m server bill
Docker kicks KVM's butt in IBM tests
Big Blue finds containers are speedy, but may not have much room to improve
US regulators OK sale of IBM's x86 server biz to Lenovo
Now all that remains is for gov't offices to ban the boxes
Gartner's Special Report: Should you believe the hype?
Enough hot air to carry a balloon to the Moon
Flash could be CHEAPER than SAS DISK? Come off it, NetApp
Stats analysis reckons we'll hit that point in just three years
Dell The Man shrieks: 'We've got a Bitcoin order, we've got a Bitcoin order'
$50k of PowerEdge servers? That'll be 85 coins in digi-dosh
prev story

Whitepapers

Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
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.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Solving today's distributed Big Data backup challenges
Enable IT efficiency and allow a firm to access and reuse corporate information for competitive advantage, ultimately changing business outcomes.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.