Kanders continues bid to become Federal Signal's CEO

By Lisa Kerner

Charlotte, N.C., July 11 - Federal Signal Corp. shareholder Warren B. Kanders said the recent downgrade of the company to underperform by BMO Capital Markets Corp. gives Federal Signal's board more reason "to carefully consider its selection of the next chief executive officer."

In a July 9 letter to Federal Signal chairman of the board James C. Janning, Kanders noted that BMO lowered its 2009 price target of the company's stock to $10 from $13 per share, and noted that Federal Signal's current valuation was not warranted.

On June 30 Kanders announced his interest in becoming Federal Signal's chief executive officer. Jim Goodwin is Federal Signal's interim president and CEO.

Kanders, a 5.7% shareholder, is the former CEO and chairman of the board of Armor Holdings, Inc.

According to Kanders, it is possible that the company's share priced has been supported by Kanders' reputation and his stock purchases.

Kanders said he finds it difficult to believe "that the board is so naïve as to base its selection of a CEO on personality tests, rather than a careful evaluation of a candidate's history of proven performance and delivery of shareholder value."

It was previously reported that Kanders believed Federal Signal's search committee "unfairly tainted to prejudice" the investor's candidacy despite his good-faith effort to comply with all of the committee's requirements.

Federal Signal is an Oak Brook, Ill.-based company focused on security technology and industrial tooling.

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