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SPX Issues Statement on Connecticut House Bill 5695

12 March 1998

SPX Issues Statement on Connecticut House Bill 5695

    MUSKEGON, Mich., March 12 -- SPX Corporation
today issued the following statement regarding this afternoon's vote by the
Connecticut General Assembly's Judiciary Committee to send proposed House Bill
5695 to the floor of the Connecticut House of Representatives for
consideration:
    "While we are disappointed that House Bill 5695 has made it out of the
Judiciary Committee, we remain confident that the elected officials of
Connecticut will not enact this misguided, special-interest proposal into law.
House Bill 5695 was initiated by the senior management of Echlin, Inc.
before they had even considered SPX's full and fair offer to
acquire Echlin, and is nothing more than a self-serving effort to protect the
jobs of a handful of high-level corporate executives at the expense of all
Connecticut companies, their shareholders and their employees.
    "Under House Bill 5695, even if 100% of Echlin shareholders voted to
remove directors, they could not be removed at a special meeting for a year.
After a year, even if a new Board were elected by 100% of the shareholders,
the new Board could not approve a business combination -- even one that all
shareholders wanted.  Only the old Board -- the directors unanimously voted
out by the shareholders -- would be able to approve it for five years.  No
other state has ever enacted such extreme legislation that would strip
shareholders of their fundamental rights.
    "House Bill 5695 is bad for Connecticut.  This constitutionally
questionable legislation could entrench senior management of Connecticut
companies, prevent those companies from growing through beneficial business
combinations, and destroy value for shareholders of all Connecticut companies.
If House Bill 5695 is enacted into law, the employees and surrounding
communities of Connecticut companies will ultimately suffer as individuals and
institutions avoid investing in companies in which they could be deprived of
their shareholder rights without any say.
    "SPX remains committed to completing this compelling transaction.  We
will continue to vigorously oppose House Bill 5695, and will take all
necessary steps to protect shareholder interests."
    SPX Corporation is a global provider of Vehicle Service Solutions to
franchised dealers and independent service locations, Service Support to
Vehicle Manufacturers, and Vehicle Components to the worldwide motor vehicle
industry.  SPX's Internet address is http://www.spx.com.

SOURCE  SPX Corporation