Imation was started in 1996 when 3M spun off its data storage business.
Spear Point Capital Management, the private equity group based in New Orleans and New York, recently wrote a letter to Imation Corp (NYSE: IMN) exploring how to best create value at the company through a number of possibilities.
Around this time last year, Spear Point publicized a letter to Jim Cramer’s TheStreet, challenging its strategy and suggesting a rework, after a letter sent to the company on July 9th, 2013.
Seeking Alpha summarized the latest letter. See below:
- Spear Point calls for the resignation of two board members of IMN.
- Board compensation is completely out of line with the size and performance of IMN.
- Since 2003, IMN has seen 92% of shareholder value disappear.
- IMN board members are paid more than the directors of 3M, IMN’s erstwhile parent.
- Spear Point calls for significant reduction in board compensation at IMN.
Read the full letter to IMN here.
Although the group has not made an offer to acquire to company, Spear Point has not thrown out the possibility of it happening in the future.