Steel Partners seeks representation on EnPro board, urges company to maximize shareholder value

By Lisa Kerner

Charlotte, N.C., Feb. 19 - EnPro Industries, Inc. investor Steel Partners II, LP said it is disappointed in the company's failure to take necessary steps to enhance shareholder value and in its failure to "provide a substantive response" to the shareholder's value enhancement proposals.

Steel Partners' Warren Lichtenstein also noted heightened concern as a result of EnPro's "earnings shortfall and margin deterioration in the fourth quarter" in a letter to the company's board of directors.

Lichtenstein said the 9.3% decline in EnPro's share price since the earnings announcement indicates the market also believes the company's board "is not taking the necessary steps to maximize shareholder value."

Steel Partners, an 11.3% shareholder, has nominated five candidates for election as directors at EnPro's 2008 annual meeting but asked the board to add its representatives on a voluntary basis.

As previously reported, the nominees are James R. Henderson, John J. Quicke, Don DeFosset, Kevin C. King and Delyle Bloomquist.

In its earlier letter to EnPro's board, Steel Partners said the company has done a poor job managing its balance sheet and allocating its capital. The investor recommended that EnPro pursue a public recapitalization at $30 a share or explore all strategic alternatives.

EnPro makes sealing products, bearings, compressors and engines and is based in Charlotte, N.C.

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