Deals
Timken Owners Lose $1.3 Billion Without Spinoff: Real M&A
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Timken Co., the bearings maker that trades at the lowest earnings multiple among its peers, is costing shareholders the chance to recoup $1.3 billion in market value lost this year by not spinning off its steel unit.
Ralph Whitworth’s Relational Investors LLC, known for pushing for changes and board seats at companies from Hewlett-Packard Co. to Illinois Tool Works Inc., announced a 5.7 percent stake last week and said Timken’s value would jump to $64.98 a share by separating the bearings and steel units. The plan was revealed after the Canton, Ohio-based company, which closed yesterday at $45.12, fell 28 percent from its April high.