Relational Investors LLC and CalSTRS Comment on Timken Proxy Materials
Relational And CalSTRS Launch www.UnlockTimken.com To Provide Shareholders
With Important Information About Why The Separation Of Timken’s Two Core
Businesses Would Enhance Shareholder Value
Shareholders Able To Send Timken Board A Message To Unlock Shareholder Value
By VOTING FOR CalSTRS’ Proxy Proposal To Have Timken’s Two Core Businesses
Separated, Eliminating The Stock’s Long-Standing “Conglomerate” Discount
SAN DIEGO -- March 21, 2013
Relational Investors LLC (“Relational”) and the California State Teachers’
Retirement System (“CalSTRS”), collectively owners of 7.28% of the shares of
The Timken Company, (NYSE: TKR) (“Timken” or “the Company”), stated that
shareholders can send the Timken Board a clear message to take action now to
unlock shareholder value by VOTING FOR the CalSTRS proposal to separate
Timken’s core Steel and Bearings businesses included in the proxy materials
filed today by Timken.
Relational and CalSTRS today also announced the launch of
www.UnlockTimken.com. The website provides shareholders with information
detailing why a separation of Timken’s businesses will unlock shareholder
value by allowing the market to independently value Timken’s Bearings and
Steel businesses as pure-plays in their respective industries.
Relational said, “Our website provides shareholders with data and analysis
that both support and demonstrate the potential for enhanced shareholder value
that could be unlocked though the separate public trading of Timken’s Steel
and Bearings businesses and show that Timken’s ‘conglomerate’ structure
continues to cause the Company’s stock to trade at a significant discount.”
Since Relational and CalSTRS first filed their Schedule 13D on November 28,
2013, advocating for the separation of Timken’s Steel and Bearings businesses,
Timken’s stock price has outperformed the S&P MidCap 400 Index by 23% as of
March 15, 2013.
“The investment community’s reaction to the CalSTRS proposal has been positive
and clear—there is a consensus among securities analysts supporting the
separation of the Steel and Bearings businesses; favorable movement in the
price of the stock; and growing traction for the separation among shareholders
with whom Relational and CalSTRS have spoken,” Relational said.
Relational and CalSTRS URGE shareholders to send a clear message to Timken’s
Board to unlock shareholder value. VOTE FOR the CalSTRS shareholder proposal.
About Relational Investors LLC:
Relational Investors LLC, founded in 1996, is a privately held, multi-billion
dollar asset management firm and registered investment adviser. Relational
invests in publicly traded companies that it believes are undervalued in the
marketplace. The firm seeks to engage the management, board of directors, and
shareholders of its portfolio companies in a productive dialogue designed to
build a consensus for positive change to improve shareholder value.
About the California State Teachers Retirement System: The California State
Teachers’ Retirement System, with a portfolio valued at $161.5 billion as of
February 28, 2013, is the largest educator-only pension fund in the world.
CalSTRS administers a hybrid retirement system, consisting of traditional
defined benefit, cash balance and voluntary defined contribution plans, as
well as disability and survivor benefits. CalSTRS serves California's 862,000
public school educators and their families from the state’s 1,600 school
districts, county offices of education and community college districts.
Kekst and Company
Daniel Yunger/Donald C. Cutler
212-521-4800 or 415-852-3903
Okapi Partners LLC
Bruce H. Goldfarb/Charles W. Garske/Geoffrey Sorbello
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