Feeds

Iron Mountain caves in to investors

Stockholders appeased

Beginner's guide to SSL certificates

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. ®

Beginner's guide to SSL certificates

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
DOUBLE BONK: Testy fanbois catch Apple Pay picking pockets
Users wail as tapcash transactions are duplicated
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Google Glassholes are UNDATEABLE – HP exec
You need an emotional connection, says touchy-feely MD... We can do that
YARR! Pirates walk the plank: DMCA magnets sink in Google results
Spaffing copyrighted stuff over the web? No search ranking for you
In the next four weeks, 100 people will decide the future of the web
While America tucks into Thanksgiving turkey, the world will be taking over the net
prev story

Whitepapers

Choosing cloud Backup services
Demystify how you can address your data protection needs in your small- to medium-sized business and select the best online backup service to meet your needs.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
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.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.