Tweet
April 14, 2011, 8:35 AM EDT
By Alex Sherman
(Updates with comment from director in third paragraph.)
April 14 (Bloomberg) -- Iron Mountain Inc., the document- storage company under pressure from investors to make strategic changes, said Chief Executive Officer and President Bob Brennan is stepping down effectively immediately.
Richard Reese, the company’s chairman, will also take on the CEO role, the company said in a statement today. Reese had served as the company’s CEO from 1981 to 2008 and has been chairman since 1995. Brennan, who had been CEO since 2008, also left the board.
“As we move forward with the execution of our business plan, Bob and the board agreed that the time is right to make this transition,” said Kent Dauten, lead director of Iron Mountain’s board, in the statement. “We are confident that Richard’s deep operational expertise and knowledge of our business with be instrumental to our success.”
Iron Mountain, based in Boston, provides business storage and maintains documents including records, electronic files, medical data and e-mail.
New York hedge fund Elliott Management Corp. sent a letter to the board this month demanding directors to “change course” after Iron Mountain adopted a so-called poison pill provision, making it more difficult for investors to take control of the company.
REIT Conversion
Elliott wants Iron Mountain to consider converting into a real-estate investment trust, which must pass on at least 90 percent of its annual taxable profit to shareholders through dividends. The hedge fund, which owns less than 5 percent of Iron Mountain, says a transfer to a REIT would cause the stock to more than double to $77.
Ken Charles Feinberg, co-portfolio manager at Davis Selected Advisers LP in New York, which had a 21 percent stake in Iron Mountain as of March 23, said his firm would be “likely” to support Elliott’s nominees.
Iron Mountain rose 13 cents to $32.96 yesterday in New York Stock Exchange composite trading. The shares have risen 32 percent this year and are up 25 percent since March 9, the day before Elliott’s statement calling for new directors.
--Editors: Peter Elstrom, Ville Heiskanen
To contact the reporter on this story: Alex Sherman in New York at asherman6@bloomberg.net
To contact the editor responsible for this story: Peter Elstrom at pelstrom@bloomberg.net
Powered By WizardRSS.com | Full Text Feed | Amazon Affiliate
(Updates with comment from director in third paragraph.)
April 14 (Bloomberg) -- Iron Mountain Inc., the document- storage company under pressure from investors to make strategic changes, said Chief Executive Officer and President Bob Brennan is stepping down effectively immediately.
Richard Reese, the company’s chairman, will also take on the CEO role, the company said in a statement today. Reese had served as the company’s CEO from 1981 to 2008 and has been chairman since 1995. Brennan, who had been CEO since 2008, also left the board.
“As we move forward with the execution of our business plan, Bob and the board agreed that the time is right to make this transition,” said Kent Dauten, lead director of Iron Mountain’s board, in the statement. “We are confident that Richard’s deep operational expertise and knowledge of our business with be instrumental to our success.”
Iron Mountain, based in Boston, provides business storage and maintains documents including records, electronic files, medical data and e-mail.
New York hedge fund Elliott Management Corp. sent a letter to the board this month demanding directors to “change course” after Iron Mountain adopted a so-called poison pill provision, making it more difficult for investors to take control of the company.
REIT Conversion
Elliott wants Iron Mountain to consider converting into a real-estate investment trust, which must pass on at least 90 percent of its annual taxable profit to shareholders through dividends. The hedge fund, which owns less than 5 percent of Iron Mountain, says a transfer to a REIT would cause the stock to more than double to $77.
Ken Charles Feinberg, co-portfolio manager at Davis Selected Advisers LP in New York, which had a 21 percent stake in Iron Mountain as of March 23, said his firm would be “likely” to support Elliott’s nominees.
Iron Mountain rose 13 cents to $32.96 yesterday in New York Stock Exchange composite trading. The shares have risen 32 percent this year and are up 25 percent since March 9, the day before Elliott’s statement calling for new directors.
--Editors: Peter Elstrom, Ville Heiskanen
To contact the reporter on this story: Alex Sherman in New York at asherman6@bloomberg.net
To contact the editor responsible for this story: Peter Elstrom at pelstrom@bloomberg.net
Powered By WizardRSS.com | Full Text Feed | Amazon Affiliate