In In case Icahn takes a stake in RIM, he would likely seek a seat on the board. He could then start agitating in favour of strategies that unlock value for shareholders such as a break-up of the company or outright sale. In the past RIMs board has attracted criticism from some investors, who are of the opinion that the company is too slow to react to new market conditions.
RIM has been struggling to hold its own in the hyper-competitive smartphone and tablet computer markets. Most investors seem to be of the opinion that Icahns interests in RIM will lead to positive results. In the past Icahns had invested in Motorola, which was forced to split into two companies, after his sustained campaign. Today Motorola Solutions Inc, sells wireless equipment, and Motorola Mobility Holdings Inc, handles handset and set-top box business.
Icahn later urged Motorola Mobility to split off its patents from its handset business. Earlier this year, Google paid $12.5 billion to acquire the business. Icahn last week abandoned his quest to take over the board of bleach maker Clorox, and in August he gave up a lengthy battle for control of film studio Lions Gate Entertainment Corp.
Once RIM was dominant in the smartphone industry, due to its business-friendly devices. But in face of new competition from Apple's iPhone and Google's Android software the company has been rapidly losing its market share. RIMs shares lost some 60 percent of their value this year, and the company has been the target of several investor attacks after a series of profit warnings and a botched launch of its PlayBook tablet computer.
Add new comment