Timken Co.’s large activist shareholders have set up a website to make their case ahead of the company’s annual shareholders meeting that the Canton steel and bearings maker should be split into two businesses.
The site, www.UnlockTimken.com, was created by California-based Relational Investors and the California State Teachers Retirement System pension fund. The two investment organizations last November went public with a proposal to split Timken into two publicly traded companies, saying that would increase shareholder value as so-called “pure play” businesses.
The new website includes investor presentations, letters, news stories, press releases, SEC filings and a “frequently asked questions” section and is aimed at getting other shareholders to pressure Timken’s board and management.
Relational and CalSTRS own nearly 7.3 percent of Timken; Relational is Timken’s single largest shareholder with 6.9 percent of Timken shares. CalSTRS, meanwhile, is a $161 billion pension fund.
The two investment partners have submitted a nonbinding resolution on their proposal to split the company for Timken’s May 7 annual shareholders meeting.
Timken, meanwhile, issued a statement saying it continued to oppose breaking up the company.
The company statement in full reads: “Timken has a track record of delivering strong financial performance and is committed to acting in the best interests of shareholders. We strongly disagree with the flawed analysis by Relational and CalSTRS that suggests the combined value of separate steel and bearings and power transmission companies would be substantially higher than the value of Timken today and believe Timken’s proven business model and strategy to create shareholder value represent the best path forward for all shareholders.”
Shares of Timken fell 52 cents to $56.15 on Wednesday. Shares are up 17.9 percent, including dividends, since Jan. 1 and are up 9.5 percent from a year ago.
Jim Mackinnon can be reached at 330-996-3544 or jmackinnon@thebeaconjournal.com.