Feeds

Iron Mountain caves in to investors

Stockholders appeased

Secure remote control for conventional and virtual desktops

Iron Mountain's returning CEO has moved quickly to reach an accommodation with activist investor Elliot Management, being willing to sell-off the digital business, close unprofitable international operations, return cash to shareholders, and evaluate becoming a REIT.

Scenting that stockholder opinion was in line with that of Elliot Management in wanting no more wasteful ventures, Richard Reese, the replacement and returning Iron Mountain CEO, has agreed a comprehensive strategic plan that meets Elliot's concerns. It includes:

  • Supporting an Elliot nominee director at the 2011 annual meeting, and an independent director agreed with Elliot after that meeting
  • Returning $2.2bn to stock holders through 2013
  • Looking at alternatives for the digital business including selling it off
  • Closing unprofitable international operations but growing the profitable ones and ones with realistic prospects
  • Forming a board committee to evaluate Iron Mountain becoming a Real Estate Investment Trust (REIT) and hopefully thereby lowering its tax burden.

This course of action implies that Iron Mountain's Mimosa acquisition was a waste of cash. Possible buyers for the digital business are few. EMC's VMware operation, now running EMC's cloud IT services business, might be interested as might cloud storage provider Nirvanix.

The previous executive management's strategy has now been found wanting and Iron Mountain reminded that building shareholder value means exactly that; the board must not be an executive management team's poodle. ®

Boost IT visibility and business value

More from The Register

next story
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
Premier League wants to PURGE ALL FOOTIE GIFs from social media
Not paying Murdoch? You're gonna get a right LEGALLING - thanks to automated software
Online tat bazaar eBay coughs to YET ANOTHER outage
Web-based flea market struck dumb by size and scale of fail
Amazon takes swipe at PayPal, Square with card reader for mobes
Etailer plans to undercut rivals with low transaction fee offer
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
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
XBOX One will learn to play media from USB and DLNA sources
Hang on? Aren't those file formats you hardly ever see outside torrents?
Class war! Wikipedia's workers revolt again
Bourgeois paper-shufflers have 'suspended democracy', sniff unpaid proles
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.