Dolphin III Encourages Bairnco to Close Valuation Gap
28 Diciembre 2006 - 1:15PM
PR Newswire (US)
NEW YORK, Dec. 28 /PRNewswire/ -- Dolphin Limited Partnership III,
L.P. and affiliates which hold approximately 3.2% of the
outstanding shares of Bairnco Corporation (NYSE symbol: BZ), today
announced that it had sent the following letter to Mr. Luke E.
Fichthorn III, its Chairman and Chief Executive Officer. December
27, 2006 Via Fax and Federal Express Mr. Luke E. Fichthorn III
Chairman and CEO Bairnco Corporation 300 Primera Blvd Suite 432
Lake Mary, FL 32746 Dear Luke, As you know, Dolphin Limited
Partnership III, L.P. and affiliates continue to be significant
shareholders in Bairnco Corporation. First, we commend you and your
management team on continuing the operational turnaround that, if
the third quarter 2006 performance is any indicator, is beginning
to bear fruit. With the opening of the new China manufacturing
facility and the synergistic Atlanta Sharptech acquisition, the
Company appears to have built real momentum. However, as we have
discussed, it appears that the Company's share price does not yet
fully reflect the current and forecasted performance improvements
outlined in your July Form 14D-9 filing and increased in your
October 29, 2006 press release (For 2007, $13-$15 million of
operating profit or approximately $20 to $22 million of EBITDA).
One of the challenges for management is to close this apparent
valuation gap. Accordingly, we encourage the Company to take
additional steps, such as significantly increasing the quarterly
dividend (currently a 2.3% annual yield) and/or recapitalizing the
Company's strong balance sheet in order to return capital to its
shareholders. Alternatively, we would support a sale of the Company
at a price that reflects the benefits to be obtained from the
elimination of the customary costs of being a public company as
well as outlined operational improvements. We understand that a
valuation of the company may consider the lesser trading liquidity
of the shares (with only 7.3 million outstanding) and the Company's
disparate businesses. The Company and its shareholders have
benefited from your stewardship and we would welcome further
discussion on how to more rapidly close the valuations gap. We
remain available to be helpful. With Kindest Regards, Justin A.
Orlando Managing Director DATASOURCE: Dolphin Limited Partnership
III, L.P. CONTACT: Brooke L. Donatelli, +1-212-488-1590, for
Dolphin Limited Partnership III, L.P.
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