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.

Levin Furniture

Area Agency on Aging 10B, Inc.


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


Shareholders vote to split Timken; next move in 45 days
Timken family, management and unions protested the split, but institutional investors held sway
by WKSU's TIM RUDELL


Reporter
Tim Rudell
 
Ed Jevec (left) and John Yaggi are long-time Timken stock holders. Both say that in addition to the value of Timken stock monetarily, the company's presence in Canton is important to northeast Ohio
Courtesy of TIM RUDELL
Download (WKSU Only)
In The Region:

Another mainstay of northeast Ohio industry is heading toward some big changes. WKSU’s Tim Rudell reports on how an activist investor and a California pension fund succeeded in a vote to split the Timken Co. in two.

RUDELL: A vote that will like spur major change at Timken

Other options:
Windows Media / MP3 Download (3:20)


All 140 seats -- plus folding chairs -- were taken in the corporate auditorium at Timken’s Canton headquarters for the annual shareholders’ meeting. 

There was a murmur, faint but noticeable, when a shareholder vote on spinning off the company’s steel division came out more than 53 percent “for," to 46 percent “against.” 

Can, doesn't mean should
Steven Downs is an investor from New York. He traveled to the meeting to see if the split promoted by some big-block investors, a move they said would  “unlock” the value of Timken stock,  would pass. He was concerned that if it did, it would be because the plan sounded clever -- and doable --rather than because it was actually a good strategy.

“We all encounter those kinds of things in our daily life. But certainly in terms of changing the company, yes, you can make changes, but it doesn’t mean you should.”

The asset management firm Relational Investors and the California’s State Teacher’s Retirement System -- who together own 7.3 percent of Timken stock -- pushed for the split. It would put Timken’s bearings operations in one company and steel in another.

So what would a new company look like
They argue that Timken’s stock is not getting the price it should and creating a second company would fix that.

The Timken name would still be used; steel division management would stay; and the Timken family would be represented on the board. The original Timken – built around roller bearings -- would continue to be marketed to investors interested in manufacturing. 

Ed Jevec of Massillon is a longtime Timken shareholder, who also came to the meeting to see if the split-up proposal would pass.

“I believe it probably would be better off separated, and I think they will both grow. (It's) just like if you cut a tree and other plants and they’ll grow if you separate them.”

Setting steel up for a sale?
Steven Downs sees a split up coming out very differently. He’s worried that the allure of shorter-term stock-price gains, what he called the effort to “engineer” investment value -- may have missed a key factor.

“The steel company as a stand-alone is really too small to operate. Most of the companies in the steel business are much larger.  I personally think what will happen if they split  is that the Timken steel operation will end up getting bought by somebody else.”

Ed Jevec and another local shareholder, John Yaggi of Alliancelean in different directions on the split. Still, they walked together to the parking lot after the meeting.  Noting that the Timken board of directors had opposed the split, too, Yaggi said he isn’t sure about its merits.

“Before I know more, I kinda go with the board of directors. I think they ought to keep together," Yaggi said. "But, it never hurts to hear from the opposition. You can learn from the opposition opinion.
"But the nice thing about this today, ... it didn’t get hostile. I was beginning to wonder whether it might."

Jevec agreed.  “It was handled in a very professional manner. And the board received them well, and the people making their comments were very open and honest. “

Timken Chairman Ward “Tim” Timken Jr. said after the shareholder vote that though it was non-binding, the board will give thorough attention to the idea of dividing the company, and come to next steps within 45 days.

Timken has been headquartered and making bearings in Canton since 1901. It started making specialty steel to supply its bearing production, and employs more than 2,000 people in its steel operations in Canton.

(Click image for larger view.)


Related WKSU Stories

Is Timken's future as one company or two?
Monday, May 6, 2013

Stark County watches nervously as a vote on splitting up Timken nears
Tuesday, April 30, 2013

Another shareholder adviser sides with splitting Timken
Monday, April 29, 2013

Boom in oil-gas drilling isn't showing up in Timken's earnings as hoped
Wednesday, April 24, 2013

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

Terry Pluto: U of A's new athletic director has the toughest job in town
It is a hard sell. The Students do not want to go to the football games and they do not want to pay for the program. They have a lot of student loan debt and t...

Akron considering the future of the B.F. Goodrich smokestacks
This BFGoodrich alumna says, "Thank you, Dave Lieberth!"

State creates panel to look at Ohio charter school sponsors
It is more than disturbing that charter schools, which seemed like a good idea years ago, have begun to cripple public school education.

DEVO mural in Akron is now on display downtown
The installation is not at the former site of Chili Dog Mac. CDM was one block north on the other side of Main St.

New report shows growth in white collar jobs for Northeast Ohio
Unfortunately, there are fewer jobs in comparison to the number of professionals applying for them. I have been had a full time job since June 2012. In order to...

Advocacy group: Ohio could lead in clean energy
Ohio Legislators, You are supposed to be our leaders but you're not taking us where we want to go - where we need to go!

Campaign for and against marijuana legalization begins
Cannabis legalization needs to happen as soon as possible! But not if it gives monopolies to a selected few to grow and sell the herb. Responsible Ohio's mono...

Heinen's in downtown Cleveland sponsors a contest for food entrepreneurs
Love that this took place right here! What a way to support local. Thank you Heinens! Love this quote, as a small local biz, I agree, it's big!! "To be a small...

Pluto: How the Indians' blockbuster deal went bust
Terry, As a long time reader of yours I am generally on the same page - and we're also about the same age. Anyway, like many, I am dismayed at the greedy and en...

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