News of his involvement on the committee wasn't well received in all quarters. Harbinger Capital Partners, Openwave's second-biggest shareholder, publicly objected on the grounds the Peterschmidt received only a 42-per cent vote of confidence in a recent shareholder election.
Investors weren't sure what to make of the day's news.
Shares initially rose but ultimately fell 2.1 per cent.
Openwave, the world leader in mobile phone browsers, will retain Merrill Lynch to advise it on a sale, or otherwise find a way to prop up its sagging stock, which has lost more than half its value in the last year.
Today's action comes as a response to Openwave shareholders electing a board candidate put up by Harbinger which owns about 10 per cent of the company's shares instead of the company's own nominee. Harbinger has been critical of Openwave, alleging its management has been misleading investors.
But Openwave failed to pacify New York-based Harbinger.
"By appointing Peterschmidt to chair this committee, the board has put its interests and that of the senior management above those of shareholders and the company," Harbinger Managing Director Howard Kagan said.
In February, Openwave acquired WiderWeb, a small UK software developer. The acquisition provided Openwave with software that can re-format web content for mobile phones in a compressed XHTML/MP format, opening access to the internet on mass market mobile devices.
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