A group of shareholders of Storage Technology Corp, disappointed with its financial performance, has urged the company to carry out a sale or a merger. The group, which includes Iridian Asset Management and collectively holds a 7.4% stake in StorageTek, said in a filing with the Securities and Exchange Commission that it has been extremely […]
A group of shareholders of Storage Technology Corp, disappointed with its financial performance, has urged the company to carry out a sale or a merger. The group, which includes Iridian Asset Management and collectively holds a 7.4% stake in StorageTek, said in a filing with the Securities and Exchange Commission that it has been extremely disappointed in the company. The group alleges that management has failed to create shareholder value as the company’s competitors have prospered.
Iridian has repeatedly sought to pressure the company’s senior management into a possible sale and, according to the filing, met with management on September 15 to reiterate their desire for action. In StorageTek’s most recent quarter, the company reported a net loss of $38.5m, compared with $54.4m profit in the same period last year. Revenue rose 21% to $654.4m. The main driver behind the loss was a $102.6m charge relating to pending patent litigation and restructuring activity. The company’s shares, which were trading at about $40 last February, are now worth $22.625. á
