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Monday, October 30, 2006

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

From 13D Tracker

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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