Friday, October 27, 2006

Harbinger Capital and Salton (SFP) Enter Confidentiality Agreement Which Could Lead to Merger

In an amended 13D filing after the close on Salton Inc. (NYSE: SFP), 15.54% holder Harbinger Capital disclosed that on October 26 they entered into a confidentiality agreement with the company. The agreement follows an recent disclosure that on October 19, the fund sent a letter to the company proposing a merger between Salton and Applica (NYSE: APN), a small household appliances company they recently acquired.

On Monday, Salton announced they would explore strategic alternatives, which they said could include a sale or merger of the company.

Salton is a distributor of small appliances, home decor, and personal care products, best known for its George Foreman grill.

Shares of Salton surged 15.2% last Friday and another 24.7% on Monday following the Harbinger proposal and the company's willingness to consider a sale. The stock is flat today.

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