Sonus – Just the tip of the Iceberg

Implications: Isn’t foreign investment in publicly traded American companies is supposed to be carefully monitored by the SEC?  

Analysis: I want to avoid social and political commentary.  However, given the current economy, I give Sonus a lot of credit for standing up to a shareholder who is going to give them a lot of trouble this year.  Does anyone honestly believe this fight is over?

The reality is that Sonus had a right to block the shareholder because of the circumstances noted.  Unfortunately, the Street is going to punish Sonus for being in this mess.  Just the notion that a foreign shareholder wants to make changes to governance is disturbing.  What were the changes to corporate governance did Legatum want to make?  Maybe the changes were necessary.  Then again maybe the changes were not necessary.

I remember when Sonus first entered the business and started selling equipment.  The company was innovative and it still is.  However, something is going on and needs to be addressed by the other shareholders.

I am all for shareholder rights but this is downright unusual.