Steel Partners seeks to acquire Point Blank Solutions

By Lisa Kerner

Charlotte, N.C., Oct. 30 - In a letter to Point Blank Solutions, Inc., Steel Partners II, LP said it wants to negotiate for the remaining shares of the company's stock for no less than $5.50 cash per share.

The per-share price is a roughly 23% premium to Point Blank's closing price of $4.45 (Pink Sheets: DHBT) on Oct. 29.

The activist hedge fund said it went public with its interest in Point Blank after the company failed to respond to Steel Partners during a two-month period.

"We are confident that our proposal represents the best strategic alternative available to immediately maximize shareholder value for the company and its public shareholders," Steel Partners managing member Warren G. Lichtenstein said in the letter, which was included in a news release.

Steel Partners cited experience in enhancing the value of other defense companies, including Aydin Corp., ECC International Corp. and Tech-Sym Corp. Each sold at an "attractive" premium after Steel Partners became involved on the board of directors, according to the letter.

"Our proposal is not subject to any financing contingency and we would be willing to agree to discuss commencing a tender offer upon signing a definitive merger agreement to facilitate immediate liquidity to the company's shareholders," Lichtenstein wrote.

Point Blank is a Pompano Beach, Fla., producer of body armor systems for the military and law enforcement.

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