Struggling Sun Microsystems Inc. (JAVA) seems ready to admit it doesn't have all the answers. The company has agreed to let activist investor Southeastern Asset Management add two new independent directors to its board "as soon as reasonably practicable."
Southeastern, which is Sun's largest shareholder with 22% of the company's outstanding stock, has in recent months increased its stake and helped call attention to the plight of Sun, whose stock has fallen more than 80% from 52-week highs.
Aside from highlighting the company's business troubles, however, Southeastern has been quiet about outlining specific moves Sun could take to turn things around. While the consensus is that Sun must do something, there's been little advice forthcoming from Southeastern or any other party. Given the vagueness of Monday's announcement about the new Sun board members, it could be a while longer before anyone comes up with some sound advice. Southeastern has not disclosed the names of the new board members it plans to name, or a time frame for doing so. -Andrea Orr