EnPro to consider suggestions made by Steel Partners

By Lisa Kerner

Charlotte, N.C., Feb. 6 - EnPro Industries, Inc. said its board of directors will evaluate the alternatives outlined by Steel Partners II, LP in its Jan. 31 letter to the company.

In its letter, the investor referenced a verbal inquiry it made about a possible sale of the company to Steel Partners in June 2007. In response, EnPro said Wednesday that its board met on July 17, 2007 and unanimously determined that "the time was not right for the sale of the company."

At the time, EnPro's shares were trading for between $44 and $46 a share, according to a company news release.

In its Jan. 31 letter, Steel Partners said it was nominating five individuals for election to EnPro's board at the 2008 annual meeting.

The investor nominated James R. Henderson, John J. Quicke, Don DeFosset, Kevin C. King and Delyle Bloomquist.

Steel Partners also said EnPro has done a poor job managing its balance sheet and allocating its capital.

The investor recommended that EnPro pursue a public recapitalization at $30 a share or explore all strategic alternatives.

Steel Partners beneficially owns 2,433,838 shares, or 11.3%, of the company's common stock.

EnPro makes sealing products, bearings, compressors and engines and is based in Charlotte, N.C.

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