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Blackberry: Share price up as service crashes

Mike Simons | Oct. 12, 2011
Shares in Research in Motion, the company behind Blackberry mobile messaging service, were up today even though its customers in Europe, the Middle East and Africa were hit by a second day of service failures.

It highlighted an "on-going exodus of RIM's human capital," which raised questions about the company's "ability to inspire and retain the talent that will be essential for RIM to regain its competitive standing."

Jaguar slammed RIM's corporate structure with co-CEOs and co-chairmen, which it described as "ineffectual". In June RIM announced the formation of a committee of independent directors to look at the company's structure, but Jaguar said, this was a compromise that "clearly demonstrates the complacency that has led to the Company's downfall, as well as the disconnect between the Board and its shareholder base."

In a final swipe at RIM, Jaguar highlighted the M&A activity in the mobile industry and in patents and intellectual property, including Google's $12.5 billion proposed acquisition of Motorola Mobility; Wi-LAN Inc.'s $480 million offer for MOSAID and the $4.5 billion acquisition of Nortel's patents by a consortium of six companies including RIM.

Jaguar said RIM with "its own stock of coveted patents is positioned to benefit from the increased appetite for intellectual property, but the Board must change course and recognize the opportunity.Jaguar describes itself as a Canadian merchant bank which invests in underperforming, undervalued or unappreciated companies.

 

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