Infighting has broken out between the board at Iron Mountain and the firm's shareholders about the company's direction.
In a regulatory filing, Iron Mountain shareholder Elliott Associates recently advised the firm that introducing a series of operational changes could lead to larger returns for investors and improve the company's financial performance.
The document claims that, while Iron Mountain's record management business remains strong, its forays into digital media have generated "minimal returns" and contributed to its share price falling to an all-time low.
The changes proposed include transforming the company into real estate investment trust (REIT), adding four new staff to its executive board and introducing a series of cost-cutting measures.
The proposed changes are reported to have won the backing of fellow shareholder, Davis Investors, which is reported to own a 19.5 per cent share of the company.
In response, Iron Mountain released a statement yesterday announcing plans to adopt a stockholder rights programme, also known as a "poison pill", to guard itself against an unfair takeover bid.
It read: "The rights plan is not intended to deter offers that are fair and otherwise in the best interests of the company's stockholders."
Elliott, which owns less than five per cent of Iron Mountain, responded with a statement expressing its disappointment at the vendor's actions.
"We are extremely disappointed by Iron Mountain's reaction to Davis Advisors' public support for the four independent nominees put forward by Elliott," it states.
"We believe it is a disturbing development when a company facing no apparent takeover threat responds to a call for change from its largest shareholder by adopting a poison pill."
The statement warns the move could have dire consequences for the firm's investors, claiming poison pills are often used by management teams to maintain control of companies at the expense of their shareholders.
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