UPDATE 1-Pulse urges shareholders to reject Bel Fuse nominees

* Says may consider sale of wireless business after a year

* Says to shut a few factories and shift production to China

(Follows alerts)

April 7 (Reuters) – Electronic components maker Pulse
Electronics Corp urged its shareholders to reject rival
Bel Fuse Inc’s proposal to nominate two board members,
in an attempt to thwart an unsolicited takeover bid.

In a regulatory filing on Thursday, Pulse Electronics urged
shareholders to vote for its director nominees at its annual
meeting on May 18.

In February, Bel Fuse offered $6 per share, or about $249
million, to buy Pulse to expand its product offering and reduce
costs. The bid was rejected by Pulse saying it significantly
undervalued the company. [ID:nL3E7DS21R]

Pulse, however, said it would consider selling its
struggling wireless business if it could not bring any
improvement in the next 12-18 months.

Its wireless sales have fallen more than 45 percent in the
fourth quarter after its major customer cut down on business
with the company.

Pulse said it was looking to cut costs by closing down a few
factories and shifting production to areas like Western China.

Bel Fuse makes electric components for the computer,
networking, and telecommunication industries. Pulse makes
components such as connectors, filters, transformers, chokes and
current and voltage sensors.

Shares of Pulse closed at $6.09 on the New York Stock
Exchange, while Bel Fuse closed at $24.05 on Nasdaq on
Wednesday.
(Reporting by Megha Mandavia; Editing by Don Sebastian and
Gopakumar Warrier)

UPDATE 1-Pulse urges shareholders to reject Bel Fuse nominees