Adaptec's board is telling shareholders that investor Steel Partners is an abusive acquirer, that has reduced shareholder value and wants control of Adaptec for scary purposes. Steel Parters is a hedge fund that invested in Adaptec in 2007, then started a fight for board influence, resulting in three seats on Adaptec's board and …
A failed company
Considering that Sundi has now been in charge for 4 years and during that time Adaptec has seen revenue decline every quarter, about the only value left in the company is the real estate and the cash in the bank. Even the IP is dimishing in value as time passes.
During Sundi's reign Adaptec has lost all OEM RAID business to LSI and others and at the same time lost 90% of its R&D. The closure of R&D around the world with work moved to India was catastrophically mismanaged.
It's a long slow death from which most shareholders just want to realise some value before there's nothing left. When Steel first came in there was some hope that value would be realised but the infighting has resulted in the once all conquering market leader reduced to little more than a niche player.
Actually, this is nothing new for Adaptec. Look at all the major storage infrastructure companies which are successful and were founded by refugees from Adaptec where their ideas for innovation had been ignored.
The sad thing is that if Steel do wind down Adaptec to realise value from it and Adaptec disappears in its current form - no one will notice or care.
Given the abuse...
I've suffered at the hands of Adaptec drivers, it's time Karma kicked in. Sorry guys, you mismanaged your company and lost control, that's the name of the game when you become publicly traded. Anyone dumb enough to invest in Adaptec can just write it off as a learning experience in investing in a company that lost interest in serving its customers.
I wanted to support Adaptec but after reading these comments....
I am seeing more and more companies that are failing who have CEOS or VP or presidents who are from India and people jump ship because these people from India refuse to listen to ideas!!!!! Either they refuse to listne to new ideas or they shove their ego inflated nonsense to drive contracts away even when already signed!!!! My company just went through this and yes our company has a person from India who is squandering the life of the company away!
I think it is a methodology for people from India to lower the value of a company in order maybe after everyone jumps ship to possibly send the entire operation over to India.
THATS NOT RIGHT!
People in this instance I say Let Steel have their way.