Magnetek acknowledges Riley Investment's suggestion that the company sell

By Lisa Kerner

Charlotte, N.C., Dec. 9 - Magnetek, Inc.'s board of directors said it will respond "in due course" to a suggestion by shareholder Riley Investment Management LLC that the company be sold.

As previously reported, Riley urged the board to sell Magnetek in pieces and to give Riley a seat on the board.

In its Dec. 3 letter to the board, Riley said it believes the sale process "could garner a price at significant premiums to the current market capitalization and attract multiple large bidders."

Riley, with a 9% stake, also said that Magnetek's market size, market capitalization and ongoing pension liability could affect shareholders' ability to receive fair value on the open market.

Based in Menomonee Falls, Wis., Magnetek manufactures and sells digital power control systems used to control motion and power in material handling, people moving, telecommunications and energy delivery applications.

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