Feeds

Adaptec cancels AGM

Steel Partners soap opera lurches on

Top 5 reasons to deploy VMware with Tegile

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. ®

Beginner's guide to SSL certificates

More from The Register

next story
It's Big, it's Blue... it's simply FABLESS! IBM's chip-free future
Or why the reversal of globalisation ain't gonna 'appen
IBM storage revenues sink: 'We are disappointed,' says CEO
Time to put the storage biz up for sale?
'Hmm, why CAN'T I run a water pipe through that rack of media servers?'
Leaving Las Vegas for Armenia kludging and Dubai dune bashing
Microsoft and Dell’s cloud in a box: Instant Azure for the data centre
A less painful way to run Microsoft’s private cloud
Facebook slurps 'paste sites' for STOLEN passwords, sprinkles on hash and salt
Zuck's ad empire DOESN'T see details in plain text. Phew!
Windows 10: Forget Cloudobile, put Security and Privacy First
But - dammit - It would be insane to say 'don't collect, because NSA'
prev story

Whitepapers

Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.