Feeds

Iron Mountain hit by hedge fund attack

Stop digital and international growth

HP ProLiant Gen8: Integrated lifecycle automation

Data-vaulting company Iron Mountain has been hit by a hedge fund shareholder attack that accuses management of disastrous forays into digital data storage and international expansion. It should become a real estate-focused company delivering cash to shareholders instead of wasting it on fruitless growth ambitions, says the fund.

Iron Mountain has reported dreadful results in its eDiscovery business with a near £300m goodwill impairment charge and restructuring of the sales force.

Elliot Management is the hedge fund in question. It is run by Paul Singer, and owns almost 5 per cent of Iron Mountain stock. Elliot has sent an open letter strongly criticising Iron Mountain CEO Bob Brennan's strategy of growing the company by expanding its physical paper and tape storage operations overseas, and also by setting up a digital data storage and eDiscovery business. The latter has lost money, Elliot claims, and the former delivers dismal returns.

Elliot wants four new directors on Iron Mountain's board and, through their efforts, a change in the company's strategy such that it maximises the creation of shareholder value by recognising it runs a mature, real estate-focused business. It should become an operator of a REIT (Real Estate Investment Trust) which would provide significantly lower US tax obligations and return profits to shareholders, according to Elliot. As such it could also be run more efficiently, meaning lower costs.

A presentation has been made available on the SEC website explaining Elliot's analysis and the justification for its REIT proposal.

If Elliot gets its way and persuades a majority of shareholders to back its proposals, then Brennan's future as Iron Mountain CEO could be curtailed. The company has said it is evaluating the Elliot proposals. ®

Eight steps to building an HP BladeSystem

More from The Register

next story
Apple fanbois SCREAM as update BRICKS their Macbook Airs
Ragegasm spills over as firmware upgrade kills machines
THUD! WD plonks down SIX TERABYTE 'consumer NAS' fatboy
Now that's a LOT of porn or pirated movies. Or, you know, other consumer stuff
EU's top data cops to meet Google, Microsoft et al over 'right to be forgotten'
Plan to hammer out 'coherent' guidelines. Good luck chaps!
US judge: YES, cops or feds so can slurp an ENTIRE Gmail account
Crooks don't have folders labelled 'drug records', opines NY beak
Manic malware Mayhem spreads through Linux, FreeBSD web servers
And how Google could cripple infection rate in a second
FLAPE – the next BIG THING in storage
Find cold data with flash, transmit it from tape
prev story

Whitepapers

Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
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.
Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.