Point Blank turns down shareholder's offer to buy remaining shares

By Lisa Kerner

Charlotte, N.C., Nov. 9 - Point Blank Solutions, Inc. does not believe the unsolicited proposal from Steel Partners II, LP is in the best interest of all shareholders, according to a company news release.

As previously reported, Steel Partners asked on Oct. 30 to negotiate for the remaining shares of Point Blank's stock for no less than $5.50 cash per share.

Point Blank's priority is to address the "class action and derivative shareholder suits, numerous ongoing implications from the criminal indictments of former senior management, and various other investigations," the company said in its response letter to Steel Partners.

"Under the guidance of the board and the leadership of new management, we have improved procedures, increased operating efficiencies, and continue to execute and refine a strategic plan designed to leverage the company's competitive strengths," president and chief executive officer Larry R. Ellis wrote.

Point Blank said it is willing to discuss its strategy with Steel Partners and is prepared to enter into a confidentiality and non-disclosure agreement with the activist hedge fund.

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

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