SPX Agrees To Have Two Relational Nominees On Board

(RTTNews) - SPX Corp. (SPW) Tuesday said it has reached a cooperation agreement with Relational Investors LLC, whereby Relational could nominate up to two members to the board of directors of the industrial equipment manufacturer.

In turn, the activist investor has agreed to vote in favor of SPX's board nominees during the term of the cooperation agreement.

The agreement gives Relational an option to have David Batchelder, its principal and co-founder, on SPX's board of directors after the 2014 annual meeting of stockholders.

Batchelder can be nominated to the SPX board of directors at Relational's request any time after SPX's 2014 annual meeting of stockholders, but before the sixtieth day prior to SPX's 2015 annual meeting of stockholders.

If Batchelder joins the company's board, SPX agrees to re-nominate him for election at the company's 2015 annual meeting of stockholders.

Additionally, if Batchelder joins the company's board, Relational has the right to request the board to nominate a second Relational director for election at the 2015 annual meeting of stockholders.

Relational began investing in SPX in late December 2012 and, as of the quarter ended December 31, 2013, owned about 15.5 percent of SPX's common stock.

SPX closed up 2.3 percent on Tuesday at $101.73.