Friday, August 20, 1999
Providence Capital buys 7.4% of Baldwin
BY MIKE BOYER
The Cincinnati Enquirer
A New York money-management firm, active in challenging the management of underperforming companies, has taken a 7.4 percent stake in Baldwin Piano & Organ Co.
Herbert A. Denton, president of Providence Capital Inc., said in a government filing his investment group, which includes an Irish investment firm, thinks Baldwin's shares are undervalued.
The group said it has held talks with some Baldwin board members about ways to increase the value of the company's stock. Mr. Denton said he also unsuccessfully sought to be included on Baldwin's board earlier this year.
Baldwin's shares closed Thursday at $8.75, up 75 cents.
“I don't have much confidence in current management,” Mr. Denton said in an interview.
He said his group, which has bought 255,300 Baldwin shares, plans to monitor how the company handles proceeds from the sale of its assets. The company is seeking a buyer for its retail financing operation.
Mr. Denton said he would like to see the proceeds returned to shareholders rather than reinvested in the business.
Karen Hendricks, Baldwin's chairman and chief executive officer, did not return a phone call seeking comment.
Two years ago, Mr. Denton led an investment group that sought to elect an independent slate of directors to Ashland Inc.'s board. That effort led the company, now based in Covington, to undertake a broad restructuring effort to boost the value of its shares.
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Providence Capital buys 7.4% of Baldwin
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