News
News Home
Quick Bites
Exploradio
News Archive
News Channel
Special Features
NPR
nowplaying
On AirNewsClassical
Loading...
  
School Closings
WKSU Support
Funding for WKSU is made possible in part through support from the following businesses and organizations.

Metro RTA

Akron General

The Holden Arboretum


For more information on how your company or organization can support WKSU, download the WKSU Media Kit.

(WKSU Media Kit PDF icon )


Donate Your Vehicle to WKSU

Programs Schedule Make A Pledge Member BenefitsFAQ/HelpContact Us
Economy and Business


"Activist" investor wants to split the company
No thank you, says Timken management in prepared statement 
by WKSU's TIM RUDELL


Reporter
Tim Rudell
 
Groundbreaking for the $225-million expansion of Timken's steel making capacity at its Faircrest plant near Canton
Courtesy of TPR
Download (WKSU Only)
In The Region:

Break up the more than 100-year-old Timken Company:  that’s what some significant investors in the Canton-based bearing and steel maker are calling for.  WKSU’s Tim Rudell reports they say the move would make the stock of current shareholders more valuable.  

Click to listen

Other options:
Windows Media / MP3 Download (2:01)


(Click image for larger view.)

Relational Investment is an “activist” investor:  the San Diego firm pushes companies it has a stake in to improve share value. It holds close to 6 % of Timken’s stock and has a proposal for the company’s next annual meeting: “Sell the steel division.” 

A third of Timken’s roughly $5-billion yearly revenue comes from steel, which it began producing in 1916 in Canton. It’s actually been headquartered there and Canton has been the home of the Timken family since 1901.  

Eli Lustgarten is a nationally published analyst with Longbow Research. “Relational Investors are known for being creative and suggesting intuitive changes.  But the idea of Timken splitting up the company into a bearing & transmission and steel business is actually not new and has been talked about for several years.”

And, Lustgarten says, because Timken’s precision-steel supplies both its own and other high-end manufacturing, spinning-off steel might not do what Relational thinks it would.  “Timken is not just a bearing company and a steel company.  It’s a motion solution company.  And its steel business is a specialty steel business.  So it’s nice that you get activists suggesting how to improve the stock price.  But, in this case, we think this is more of a short-term event, and not necessarily in the best interest of Timken shareholders.” 

Splitting-up one of northeast Ohio’s major international corporations would be huge news in the region; but Lustgartner says…“Odds are, because this is not a new concept that hasn’t been looked at, it will be just a recommendation.  So, I suspect not much will happen.  It’s not a business easily separated, nor makes a lot of sense to be separated.

In February of this year Timken announced plans to invest $225-million in its Faircrest steel mill in Canton so it can produce more specialized steel pipe and precision equipment for the shale drilling boom in Ohio.  The company is also building its new 42 million dollar headquarters near the Akron-Canton airport. 

Related WKSU Stories

Activist investors seek to split Timken
Wednesday, November 28, 2012

Northeast Ohio businesses making record profits
Wednesday, April 25, 2012

Analyst says Timken expansion a good choice
Wednesday, August 31, 2011

Commitment to Canton is long term
Monday, April 23, 2012

Add Your Comment
Name:

Location:

E-mail: (not published, only used to contact you about your comment)


Comments:




 
Page Options

Print this page

E-Mail this page / Send mp3

Share on Facebook




Stories with Recent Comments

Ohio's Supreme Court narrowly upholds Ashford Thompson's death sentence
"Justices" William O’Neill, Paul Pfeifer and Judith Lanzinger should all be immediately removed from the court. If they could actually believe that this murde...

Ohio's Sen. Brown is pushing for more assistance for homeless vets
That would be a great program to have for the homeless vets. Many of them are still suffering from PTSD even from the Vietnam war.

Lordstown GM plant plans to install 8,500 solar panels
How much will this solar array cost? How is it being funded, and who is really paying for it? How much real useful electricity will it actually produce in MEh p...

Local Ebola concerns cause officials to pay more attention to West Africa
I have a better idea, let's secure our borders and spend those billions of dollars on our own first.

HUD and Cuyahoga Land Bank extend a housing deal for another year
Need to sale lot, and would like to know how to contact someone to see if they may be interested in the property that sat between two lots. If you can give me...

Akron Beacon Journal details abuse claims against televangelist Angley
In the early 90's I went forth for pray. And the man was anointed by the hand of God. Just a fact I will never forget

Lawmaker questions why a million voters didn't get absentee applications
He's a damn lie! I vote n all elections. I missed 1. Haven't gotten my absentee ballot and their making it hard to get one.

Thirsty Dog Brewery warns it might have to leave Akron
Why is it the city's responsibility to find this guy a location? There are a hundred realestate companies that could help him.

Kent State sends home three after contact with second Ebola-stricken nurse
Why weren't all health workers who were around Duncan quaranteened for 21 days and tested for Ebola? That's a no-brainer. Why was Vinson allowed to travel right...

Copyright © 2014 WKSU Public Radio, All Rights Reserved.

 
In Partnership With:

NPR PRI Kent State University

listen in windows media format listen in realplayer format Car Talk Hosts: Tom & Ray Magliozzi Fresh Air Host: Terry Gross A Service of Kent State University 89.7 WKSU | NPR.Classical.Other smart stuff. NPR Senior Correspondent: Noah Adams Living on Earth Host: Steve Curwood 89.7 WKSU | NPR.Classical.Other smart stuff. A Service of Kent State University