Beleaguered BlackBerry maker Research in Motion is facing criticism from a small Canadian investment firm that has called for the company’s breakup. The board of merchant bank Jaguar Financial recently received a letter from Vic Albioni, head of the bank, in which Albioni demanded “transformational change” in RIM’s product development practices and corporate structure.
“It is time for transformational change,” Albioni said in the letter. “The directors need to seize the reins to maximize shareholder value before more market value is lost.”
It is unclear why Albioni is so concerned about what he perceives as RIM’s shortcomings. Jaguar has a net income of $2.1 million in the second quarter this year, and has never taken on a target as large as the $15.8 billion RIM.
RIM’s share price has fallen nearly 50 percent this year. “This decline in the company’s standing can largely be attributed to significant execution delays, inadequate mobile applications and the lack of a competitive product that addresses the needs of the consumer marketplace,” Jaguar’s letter said.
Read more at The New York Times.