Feeds

Good ship Quantum turns to Starboard, fires a few ranging shots

Responds to SEC filing across its bows

Next gen security for virtualised datacentres

Tape storage vendor Quantum has agreed to meet with Starboard Value, the activist investor that has sprung onto the scene claiming to be Quantum's largest shareholder - to the tune of 16 per cent - and wanting to prod the company into raising shareholder value.

We wrote about this here, and Quantum has issued a statement which reads:

As of Nov. 1, Starboard Value reported that it had purchased approximately 23 million shares of Quantum common stock. This represents just under 10 per vent of Quantum’s total outstanding shares and is comparable in size to the common stock holdings of some other large shareholders. (The other 5.9 per cent ownership share Starboard reported is based on assumed conversion of convertible debt the firm holds, if and when it were converted to stock at the end of 5 years).

According to its SEC filing, Starboard made these purchases because it believed Quantum's stock was undervalued and represented an attractive investment opportunity. The filing also said Starboard intends to engage in discussions with Quantum management and Board about ways to increase profitability and unlock shareholder value, as well as seek Board representation.

Quantum has not yet had any discussions with Starboard on these topics but, at the firm’s request, has agreed to meet in the coming weeks. (As with any shareholder discussions, Quantum must comply with SEC regulations prohibiting the sharing of financially material information that is not already public.)

Beyond this, Quantum has no further comment.

We can glean from this that hedge fund Starboard has not yet talked to Quantum's management - so presumably its activities thus far are hostile. It is knocking on the Quantum boardroom door, wanting admittance to the directors' table based on its holdings in debt and shares, and hoping to tell the other directors how to run the company better.

We might imagine a meeting in the "coming weeks" means before the end of the year, if not the end of November. Quantum shares are now up to $1.37, having climbed from $1.05 last week as investors gamble that Starboard's arrival on the scene will galvanise Quantum into cost-cutting and/or asset sell-off, which in turn will increase profitability - thus pushing the share price up further.

If Quantum plays nicely with Starboard we will eventually have a statement about welcome Starboard's contribution is. If not, we can look forward to complaints from Starboard about how unreasonable Quantum's management is being. Watch this space. ®

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
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.