Sirius Issues Petition For Mel Karmazin
Mel Karmazin, CEO Sirius/XM
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CEO, Mel Karmazin, has set Sirius/XM on a course that appears to be leading to the dilution of stock price, in an effort to sell more stock so that their can be an eventual "reverse-split" resulting in the share holdings of individual investors. Further devaluation of the stock from after the split will cause further losses to current owners.
We site various references to justify our position:
1. On Air Personality Howard Stern talking-up Sirius stock as a great investment prior to leaving traditional radio for Sirus. The stock was between $7 and $8 per share at that time. At the time of this writing it is trading at .31.
2. Mel Karmazin has made egregious statements about Sirius shareholders that may hint at his the belief that the current group of shareholders, being listeners of Stern and not institutional investors, are somehow inferior and expendable. CEO Karmazin has never used the words "inferior" or "expendable" to define investors but he has used terms like "unsophisticated" and "boneheads" to define stock holders in an interview in the August 5th addition of the New York Times. His actions since that statement makes the case that Mr. Karmazin does not value the people who have invested in and own his company.
In October, 2008 at the Convergence 2008 conference, hosted by Chrysler LLC., Karmazin stated that the unified satellite radio networks and receivers are still in the distant future and predicted that this final piece to the merger is as far as fifteen years in the future. Those statements caused a further drop in stock price.
Our question to Mr. Karmazin is why he would make such a statement after the stock had seemed to stabilize at the already low price of approximately thirty seven cents a share?
We are demanding the following:
1. A detailed outline to the shareholders with the plan he wishes to follow. If the plan is to flood the market to raise cash, dilute the stock, reverse split and then offer more stock to dilute the price again we need to know.
2. If the plan is to bankrupt so that he can start fresh with coveted institutional investors we need to know.
3. If the plan is to muddle through without a plan. We need to know.
4. If debt funding for February and May is already in the works we would like to know the institution.
Failure to divulge a comprehensive plan to stock holders will result in stockholders selling their holdings and canceling their subscriptions. Of course this will be entirely up to individual share holders. Our belief is that their are enough angry share holders out there to make cause a disruption of any plan Karmazin has for SIRI.
This petition is an open document and will ask for input from signers so that it is comprehensive in the listing of demands.