Point Blank Solutions postpones meeting, will review strategic options

By Lisa Kerner

Charlotte, N.C., April 8 - Point Blank Solutions, Inc. said its board of directors will explore strategic alternatives to enhance stockholder value, including a possible sale of the company, with the assistance of Wachovia Securities.

As a result, the date of Point Blank's annual meeting has been changed to Aug. 19 from April 22, a move supported by many of the company's major stockholders, a Point Blank news release stated.

Point Blank said the decision followed several days of consultation with advisers and stockholders, including Steel Partners II, LP.

"We met with many of our stockholders to solicit their views," president and chief executive officer Larry Ellis said in the release. "Based on their input and our analysis, the board voted to accelerate the pursuit of strategic alternatives for the company."

Steel Partners continues to propose acquiring Point Blank for no less than $5.50 cash per share. Point Blank said it has entered into a confidentiality agreement with the investor.

It was previously reported that Point Blank rejected Steel Partners' Oct. 30 offer to acquire the company for $5.50 cash per share.

Board chairman William Campbell said the company's strategic plan has begun to generate positive results.

"There has been great progress in bringing the company back into compliance, becoming timely in financial reporting and enhancing the company's future prospects for increased growth and profitability," Campbell stated said in the release.

On Feb. 8, Steel Partners nominated a slate of five people for election to the company's board of directors at its 2008 annual meeting:

• James R. Henderson, managing director and operating partner of Steel Partners LLC;

• Terry R. Gibson, managing director of SP Corporate Services LLC, a management services company owned by Steel Partners;

• General Merrill A. McPeak, president of McPeak and Associates;

• Robert Chefitz, managing member of NJTC Venture Fund with over 25 years of experience investing in security, technology and biotech companies; and

• Bernard C. Bailey, chairman and CEO of Paraquis Solutions LLC with more than 25 years of operational experience in the high-tech and security sectors.

According to the release, Point Blank and Steel Partners discussed settling the proxy contest, but no agreement was reached.

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

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