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Relational Investors raises stake in Timken to 7.9% from 6.88%

The company since held its 2013 annual meeting of shareholders at which a majority and, more importantly, a significant majority of the independent, non-affiliated shareholders, voted in favor of the CalSTRS’, a reporting person, shareholder proposal recommending that “the board of directors and management act expeditiously to engage an investment banking firm to effectuate a spinoff of the Steel business into a separately traded public company.” Relational has expressed their belief that the company should promptly carry out the will of its shareholders in order to unlock value. On June 10, the company announced the board’s decision to set up a strategy committee comprised of independent directors, with Goldman Sachs as an advisor, to evaluate the potential spin-off of the Steel business. Relational has since met with members of the special committee and representatives of Goldman Sachs and believe that the company has chosen an appropriate process and are confident if the board of directors are apprised of the proper analysis that the board will conclude that splitting the Steel and Bearings businesses is in the long term best interest of shareholders.