Glass Lewis, the activist proxy advisory firm, had told its Timken Co shareholders that the non binding proposal to break up the company's ball bearings and steel business is a good move.
The break up was proposed by Relational Investors and California State Teacher's Retirement System or CalSTRS. Glass Lewis was the second proxy firm that had supported the proposal as the first firm was Institutional Shareholder Services or ISS, who voiced their support for the plan earlier in the week.
The major stumbling block is Timken management, saying a unified firm would be able to enjoy a number of advantages that would be lost if the break up was allowed. Amongst the supporters of the move is the United Steel Workers union.
In its report, Glass Lewis had said, "The shareholders would strongly benefit from a more thorough review of this potential strategic alternative. The incumbent board has displayed, in our view, a clear and troubling track record of responsiveness to shareholder concern and, perhaps of greater note here, has strongly expressed its intention to pursue the status quo."
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