Steel Partners says Point Blank's standstill agreement is unnecessary

By Lisa Kerner

Charlotte, N.C., Nov. 21 - Steel Partners II, LP said it is willing to enter into an appropriate non-disclosure agreement with Point Blank Solutions, Inc. before the investor meets with the company to discuss Point Blank's strategic plan.

Steel Partners will not, however, enter into any "standstill" provisions because it has made a proposal to buy Point Blank for no less than $5.50 cash per share.

The stockholder's intentions were made known in a letter to the company's board of directors. Steel Partners was responding to Point Blank's Nov. 9 letter stating its board would not pursue Steel Partner's proposal.

Point Blank is interested in discussing its strategy with Steel Partners "given its success in providing assistance to companies in the defense industry," according to a Steel Partners news release.

"Our hope is that the standstill, which is both unwarranted and overreaching in light of our serious interest in acquiring the company, was included by overzealous lawyers and is not an actual pre-condition to our meeting," Steel Partners managing member Warren Lichtenstein wrote.

"If the board insists on a standstill, then we are only left to conclude that the board does not have a genuine interest in meeting with Steel and was using the [non-disclosure agreement] as a means to limit our rights as shareholders."

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

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