Warren G. Lichtenstein: More Info

Steel Partners, run by Warren G. Lichtenstein, works in corporate raiding.

Over the years, Warren G. Lichtenstein has earned a reputation as a hard-nosed corporate raider with a talent for finding value, in acquisitions like his 1999 acquisition of United Industrial. Within four years of purchasing a stake in the company, Lichtenstein was its chairman, working with three specially chosen executives. The company’s stock price doubled.

Steel Partners tried several takeover attempts. For example, here is how buying underperforming companies works. Steel Partners bought about 9.3% of BKF Capital Group (BKF), an asset management business that had lost money in previous years despite having $13 billion in hedge fund and traditional money management assets.

“We do not understand how a money-management company that manages approximately $13 billion of assets and has over $100 million in revenues can lose money,” Warren G. Lichtenstein wrote in a typically blunt letter to BKF’s management team. Steel plans to nominate three directors to the BKF board, improve company problems, and use its extra cash to increase dividends or repurchase stock.

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