Collective ownership of supportive shareholders in RIM stands at 8%
Supportive shareholders approve Jaguar's call for change in corporate
governance and pursuit of value creative transaction
TORONTO, Oct. 11, 2011 /CNW/ - Jaguar Financial Corporation ("Jaguar") (TSX: JFC), a shareholder of Research In Motion Limited ("RIM" or the
"Company"), announced today an increase in the number of institutional
shareholders who support Jaguar's call for RIM to fix its governance
problems and to pursue a value creative transaction such as a sale,
merger or division into separate public companies.
Shareholders supportive of Jaguar own 8% of the total issued shares of
RIM and Jaguar is in discussions with additional institutional
None of the supportive shareholders have any agreement with any of the
other supportive shareholders including Jaguar pertaining to any matter
including the purchase, sale, ownership or voting of RIM shares.
Vic Alboini, Chairman and CEO of Jaguar stated: "Our game plan is to
gain the support of shareholders representing a significant number of
RIM shares. Our supportive shareholders approve Jaguar's plan to
negotiate, at this point in time, changes in governance and the pursuit
of a value creation transaction."
Elimination of Management Dominance
Mr. Alboini stated: "A culture of management dominance at RIM must be
eliminated and replaced by proper governance oversight by a committed
tech-oriented Board that challenges the technical direction of
management. Management dominance must be supplanted by a collaborative
partnership relationship between management and the Board."
RIM failed to appoint any Chairman at all during the 2006 to 2009
period. The lack of Board oversight and absence of an independent
Chairman allowed one of the two Co-CEOs to chase his dream of buying an
NHL hockey team during the same period. Despite this unfocused
performance by management and RIM's subsequent underperformance, there
were no consequences. Instead of consequences, the underperforming
Co-CEOs were rewarded by being appointed as Co-Chairmen.
"No Chairman and a management team not fully focused during a crucial
four year period resulted in a leaderless company, a problem that
remains today" added Mr. Alboini.
"The path to negotiated change is precise and clear; it is not paved
with uncertainty. It is time for meaningful and obvious change. At
the Board level, RIM needs an independent Chairman and new directors
with substantial technology experience."
At the management level, there is no doubt that the Co-CEOs deserve
historical credit for RIM's past successes, and they have been first
class entrepreneurs. But their time as builders is over. There are
signs of a broken organizational structure, which is highlighted by
several key employee departures. In addition, management has failed to
appreciate RIM's competitive environment, which largely explains RIM's
declining market presence and dramatically reduced share price. RIM has
become a reactionary company trying to compete in an innovative
"A transformative and respected leader is exactly what RIM needs at this
stage to reorient the culture, recalibrate its competitive positioning
and revive the spirit of invention", said Mr. Alboini.
Dramatic and Swift Changes in the Tech Industry
The tech industry changes quickly and dramatically where previous
leaders like Nokia and Motorola are no longer industry leaders. RIM
had first mover advantage but ceded its position and is now playing
catch-up in a dynamic industry where others such as Apple, Google,
Microsoft, Samsung and HTC have jumped into the pole position.
When tech companies falter, Boards do take action: Carol Bartz is no
longer CEO of Yahoo!; Leo Apotheker was recently dismissed from
Hewlett-Packard; and Motorola split into two companies and brought in
new management. Google also made a change in the ruling triumvirate
not that long ago when Larry Page was appointed as CEO to replace Eric
It is time for RIM's independent directors to step up and bring in a
transformational CEO as well as a strong and respected independent
Chairman. These two appointments will address the historical lack of
attention and oversight at the Board level, and the need for a laser
beam focus by management on RIM's business rather than distractions
such as a professional hockey team.
Value Creation Process
The RIM Board needs to carefully examine its strategic options, some of
which could bring a substantial increase in equity value. Jaguar's
supportive shareholders are very focused on transactions that can
restore shareholder value, such as a sale of RIM, a merger or splitting
RIM into three separate public companies: a network company, a device
company, and a patent company.
RIM shareholders who support Jaguar's efforts to encourage the RIM Board
to begin a value maximization process can contact Jaguar at
416-363-1124 or by e-mail email@example.com.
Jaguar is a Canadian merchant bank which invests in underperforming,
undervalued or unappreciated companies and acts as a catalyst to create
value. Jaguar's track record includes the following gross annualized
gains: Century II Holdings Inc. (134%); HudBay Minerals Inc. (105%);
Kinbauri Gold Corp. (113%); RAND A Technology Corporation (25%); and
Virtek Vision International Inc. (46%).
The Toronto Stock Exchange does not accept responsibility for the
adequacy or accuracy of this news release. This press release may
contain forward-looking statements with respect to the Company, its
operations, strategy, financial performance and condition. These
statements generally can be identified by use of forward looking words
such as "may", "will", "expect", "estimate", "anticipate", intends",
"believe" or "continue" or the negative thereof or similar variations.
The actual results and performance of the Company discussed herein
could differ materially from those expressed or implied by such
statements. Such statements are qualified in their entirety by the
inherent risks and uncertainties surrounding future expectations.
Important factors that could cause actual results to differ materially
from expectations include, among other things, general economic and
market factors, and competition. The cautionary statements qualify all
forward-looking statements attributable to the Company and persons
acting on their behalf. Unless otherwise stated, all forward-looking
statements speak only as of the date of this press release and the
Company has no obligation to update such statements.
SOURCE Jaguar Financial Corporation
For further information:
Vic Alboini, Chairman & Chief Executive Officer
- or -
Kyler Wells, General Counsel & Corporate Secretary