Relational Investors Gets Results v.2.0: Timken Announces Spinoff
Spinoffs and retirements to follow.
We have been following the Timken saga since late last year.
As you recall, Underdisclosed.com favorite Relational Investors, along with CalSTRS, has been harassing Timken Co. to separate its steel and ball bearing business. They have also criticized Timken’s board and governance structure.
Timken seems to have come around to Relational’s way of thinking. You may recall that there were reports in June that Timken hired Goldman Sachs to study the spinoff option.
Timken has also announced that it has approved a plan for a spinoff of the steel business, which will include the retirement of Timken’s President and CEO and the resignation of Timken’s chairman (last name Timken), who will continue to serve as a director for the remainder of his term and as chairman and CEO of the new steel company. In addition, the CFO is leaving the company.
When the CEO retires, it is expected that Richard G. Kyle, newly appointed COO - Bearings and Power Transmission, will be promoted to President and CEO.