On Monday a group of shareholders calling themselves Nokia Plan B published an open letter calling for the firing of Stephen Elop and the reinstating of MeeGo, the next-generation software platform that was abandoned in favour of Windows.
Today they published a blog post saying they’re already giving up.
They cite two reasons:
- By the time their plan even came to fruition, most of the talented software developers at Nokia would already be gone;
- Institutional investors, who hold most of Nokia stock, have told them that their legal fiduciary responsibility bars them from going along with an activist plan; if they dislike Nokia’s strategy they’ll just sell (which they have been doing).
This seems like giving up much too early. After all, mutual funds can’t do activist investing, but hedge funds can. That’s why we have activist investors. Have they tried calling Carl Icahn? Dan Loeb?