HP shareholder Richard Gammell has filed a class-action lawsuit against HP after the company made the drastic decision to kill off the TouchPad in August, which resulted in a 20% drop in share price the following day, Reuters reported. Gammell argued in the suit that HP failed to inform investors the webOS operating system was no longer a major part of the company’s plans moving forward, and that the company had revamped its business plan without telling shareholders. Those actions, Gammell argues, artificially inflated HP’s share price. Gammell is seeking damages for any HP investor who purchased stock between November 22, 2010 and August 18th, 2011. More →
Jaguar Financial Corporation chief executive officer and RIM shareholder Vic Alboini wrote a letter urging Research In Motion to create a new plan for its business and even suggested the company consider a sale, the Financial Post said on Tuesday. “The status quo is unacceptable, the company cannot sit still,” he said. “It is time for transformational change. The directors need to seize the reins to maximize shareholder value before more market value is lost.” Alboini suggested RIM create a special panel consisting of four or five of its seven directors who could focus on finding a way, such as selling off patents, to increase shareholder value. Jaguar Financial Corporation owns less than 5% of RIM’s stock, which it purchased in July, but Alboini said his letter reflects the opinion of others, too. “We are representing several shareholders in making this statement,” Alboini said. “I’ve said to them if they want to step out and make themselves known, that’s entirely up to them.” Jaguar Financial tasks itself with investing in under-performing companies with the goal of turning them around. “RIM’s chronic underperformance and repeated delays in executing its strategy have led Jaguar to the conclusion that fundamental change at RIM is required,” he said. More →
A Motorola Mobility shareholder has initiated a class-action lawsuit against the company after CEO Sanjay Jha announced intentions to sell the firm to Google for $12.5 billion. The shareholder hopes to block the sale and argues that Motorola Mobility failed to shop around for the best price. “The offered consideration does not compensate shareholders for the company’s intrinsic value and stand-alone alternatives going forward, nor does it compensate shareholders for the company’s value as a strategic asset for Google,” investor John W. Keating said in the lawsuit. “Motorola has experienced an economic resurgence since separating into two separate companies,” he added. “The Android smartphone technology it relies on continues to gain ground on Apple’s iPhone.” If the deal is approved, Motorola Mobility will pay its investors $40 per share in cash. More →
Reuters reported on Friday that Northern and Ethical Investments, an investor in Research In Motion, has called for a shareholder vote to decide if co-CEOs Mike Lazaridis and Jim Balsillie should remain both co-chief executives and co-chairmen of the company’s board. Northern and Ethical Investments reportedly wants the Waterloo based company to have an independent board member. However, Reuters said RIM has already asked its shareholders to shoot down the vote, arguing that John Richardson is an independent member that “already acts as the de facto leader” of RIM’s board. If you’ll excuse us, we’re about to grab lunch with a co-sandwich, and co-french fries. More →
Today, Motorola announced that it would be holding a special meeting for all stockholders on November 29. The company is seeking approval of a reverse split buyback of common stock; ratios being reported are anywhere from 1-for-3 to 1-for-7.
“If approved by stockholders, the reverse split is expected to be implemented on Motorola Solutions common stock in the first quarter 2011, immediately following Motorola’s previously announced separation into two, independent public companies,” reads the press release. “Motorola’s Board of Directors believes that implementing a reverse stock split on Motorola Solutions outstanding shares is likely to improve the marketability and liquidity of Motorola Solutions common stock.”
An approved, reverse stock-split will obviously not affect the ownership stake any one shareholder has in the company, but the stock price will increase by a factor of 3 to 7 (depending on which split ratio is approved). The release also noted that investors who end up with a fraction of a share in the company — as a result of the reverse split — will be given cash for the partial share. More →