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Magnetek shareholder Riley pushes for sale, seat on company board
By Lisa Kerner
Charlotte, N.C., Dec. 3 - Magnetek, Inc. shareholder Riley Investment Management LLC urged the company's board of directors to sell Magnetek and to do so in pieces rather than sell the business as a whole.
In addition, Riley asked for a seat on the company's board of directors, according to a schedule 13D filed with the Securities and Exchange Commission.
In a Dec. 3 letter to the board, Riley said it believes the sale process "could garner a price at significant premiums to the current market capitalization and attract multiple large bidders."
Riley called the company's most recent quarter "impressive," citing revenues of $26.4 million, which were up 16%, a book to bill of 118%.
But Riley, with a 9% stake, also noted Magnetek's market size, market capitalization and ongoing pension liability which could affect shareholders' ability to receive fair value on the open market.
Based in Menomonee Falls, Wis., Magnetek manufactures and sells digital power control systems used to control motion and power in material handling, people moving, telecommunications and energy delivery applications.
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