Relational Investors LLC, the activist fund co-founded by Ralph Whitworth and David Batchelder, disclosed a stake of about 3.5 percent in B/E Aerospace Inc. (BEAV) as the maker of aircraft seats conducts a strategic review.

The firm started buying the shares in February and began talks with B/E management shortly therafter, according to a person familiar with the matter. San Diego-based Relational, which manages about $6 billion, disclosed the stake yesterday in a regulatory filing.

Relational supports B/Es decision to evaluate options to improve capital allocation and maximize shareholder returns, and is considering whether to seek board seats before the June 4 nominating deadline, said the person, who asked not to be identified because the talks are private.

B/Es review, disclosed May 4, surprised some investors because B/E had just said in April that it was working on two acquisitions of its own. In addition to seats, B/E supplies aircraft beverage makers, galley chillers, oxygen and lighting systems and aerospace fasteners. It also has made a foray into the oil and gas equipment-distribution business.

Greg Powell, a spokesman for B/E, didnt respond to a voice message seeking comment. B/E, based in Wellington, Florida, said it hired Citigroup Inc. and Shearman & Sterling LLP to help it explore alternatives, including a sale of the whole company or separation of selected businesses.

B/E Aerospace has great core assets and a strong competitive position, Matthew Hepler, managing director of research at Relational, said yesterday in an e-mailed statement. We welcome the companys announcement to explore strategic alternatives and will encourage the board to evaluate and pursue opportunities, in a disciplined manner, that will maximize value for all shareholders.

Amin Khoury, 75, co-founded the aerospace supplier with his brother Robert in 1987 and is chairman and co-chief executive officer, splitting his executive duties with operations chief Werner Lieberherr since the start of the year. The board has just six members, including the Khoury brothers.

The outcome of the review is very much dependent on Mr. Khourys intentions, Joseph Nadol, a New York-based aerospace analyst with JPMorgan Chase & Co., wrote in a May 13 research report. As recently as two weeks ago, we would have thought those were to continue growing B/E Aerospace in its core aerospace market as well as in oil and gas rental equipment.

B/E Aerospaces aviation sales have boomed as planemakers Boeing Co. (BA) and Airbus Group NV (AIR) compiled a record backlog of 10,130 orders, according to data compiled by Bloomberg Industries. First-quarter results were the best ever, Khoury told analysts on a call last month.

Relational also holds stakes in energy group Hess Corp., agricultural commodity processor Bunge Ltd., snacks supplier Mondelez International Inc., x-ray maker Hologic Inc. and air-conditioning manufacturer Ingersoll-Rand Plc, according to its most recent holdings disclosures. Third Point LLC, the hedge fund run by Daniel Loeb, exited its B/E holdings in the first quarter, according to a regulatory filing yesterday.

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B/E Aerospace Targeted by Relational Investors With New Stake