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.

Greater Akron Chamber

Hennes Paynter Communications

Levin Furniture


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 becomes first in the nation to dump PARCC testing
Best test to use for elementary schools is the old pre common core Iowa test of basic skills. This test measures apples to apples and tests the skills appropri...

Ohio is moving forward with new standardized tests
Mr Chow, Nice piece on testing. Should not Ohio go to an open bid process for the new assessment contract? Ohio has stayed with a "connected" DC non-profit fo...

The Surpreme Court gay-marriage decision plays out in Ohio Amish country
Keep in mind that the majority of the people residing in Holmes County are Amish, a church people who do not vote because they do not believe in governmental ru...

Akron council committee recommends Forney for its opening
Which committee member voted for Wilhite?

Nearly a dozen Cuyahoga gay couples get licenses to marry after the Supreme Court ruling
Presiding Judge Anthony J. Russo a graduate of Chanel High School and supposed member of St. Francis Parish in Gates Mills has just excommunicated himself. As ...

Canton Youth Symphony is named orchestra of the year
This is what makes CSO the hippest small town orchestra in America!

What can be expected if Ohio's tobacco taxes increase?
let's face it! The increase has little to do with smoking cessation

Rare Cleveland Indians photo from 1911 hits the auction block
Paddy Livingston, who cut his teeth on a Louisville Slugger in Kent, Ohio was one of the immortals that played in that game. He was the catcher. Ty Cobb actuall...

Nexus denies Green's request to relocate its planned gas pipeline
These people have so much power. Too much. They could care less about the people they leave when it is done. Spectra does not, and admits, they do not do the...

Copyright © 2015 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