<SEC-DOCUMENT>0000950123-10-110798.txt : 20110603
<SEC-HEADER>0000950123-10-110798.hdr.sgml : 20110603
<ACCEPTANCE-DATETIME>20101203153235
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0000950123-10-110798
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20101203

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			BELL INDUSTRIES INC /NEW/
		CENTRAL INDEX KEY:			0000945489
		STANDARD INDUSTRIAL CLASSIFICATION:	WHOLESALE-ELECTRONIC PARTS & EQUIPMENT, NEC [5065]
		IRS NUMBER:				952039211
		STATE OF INCORPORATION:			CA
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		8888 KEYSTONE CROSSING SUITE 1700
		CITY:			INDIANAPOLIS
		STATE:			IN
		ZIP:			46240
		BUSINESS PHONE:		317-704-6000

	MAIL ADDRESS:	
		STREET 1:		8888 KEYSTONE CROSSING SUITE 1700
		CITY:			INDIANAPOLIS
		STATE:			IN
		ZIP:			46240

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	CALIFORNIA BELL INDUSTRIES INC
		DATE OF NAME CHANGE:	19950519
</SEC-HEADER>
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<TYPE>CORRESP
<SEQUENCE>1
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<TITLE>Correspondence</TITLE>
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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">


<P align="center" style="font-size: 10pt"><B>Bell Industries, Inc.<BR>
8888 Keystone Crossing<BR>
Suite&nbsp;1700<BR>
Indianapolis, Indiana 46240<BR>
Telephone (317)&nbsp;704-6000</B>



<P align="left" style="font-size: 10pt">December&nbsp;3, 2010


<P align="left" style="font-size: 10pt"><U>VIA EDGAR</U>


<P align="left" style="font-size: 10pt">Mellissa Campbell Duru
<BR>
Christina Chalk
<BR>
Special Counsel
<BR>
Office of Mergers &#038; Acquisitions
<BR>
Securities and Exchange Commission
<BR>
100 F Street N.E.
<BR>
Washington, D.C. 20549


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>Re:</B></TD>
    <TD width="1%"><B>&nbsp;</B></TD>
    <TD><B>Bell Industries, Inc.</B></TD>
    <TD width="8%" style="background: transparent">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&nbsp;</B></TD>
    <TD width="1%"><B>&nbsp;</B></TD>
    <TD><B>Amendment No.&nbsp;1 to Schedule&nbsp;13E-3</B></TD>
    <TD width="8%" style="background: transparent">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&nbsp;</B></TD>
    <TD width="1%"><B>&nbsp;</B></TD>
    <TD><B>Filed on November&nbsp;4, 2010</B></TD>
    <TD width="8%" style="background: transparent">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&nbsp;</B></TD>
    <TD width="1%"><B>&nbsp;</B></TD>
    <TD><B><u>File No.&nbsp;5-52973</u></B></TD>
    <TD width="8%" style="background: transparent">&nbsp;</TD>
</TR>
</TABLE>

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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&nbsp;</B></TD>
    <TD width="1%"><B>&nbsp;</B></TD>
    <TD><B>Amendment No.&nbsp;1 to Preliminary Proxy Statement on Schedule&nbsp;14A</B></TD>
    <TD width="8%" style="background: transparent">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&nbsp;</B></TD>
    <TD width="1%"><B>&nbsp;</B></TD>
    <TD><B>Filed on November&nbsp;4, 2010</B></TD>
    <TD width="8%" style="background: transparent">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&nbsp;</B></TD>
    <TD width="1%"><B>&nbsp;</B></TD>
    <TD><B><u>File No.&nbsp;1-11471</u></B></TD>
    <TD width="8%" style="background: transparent">&nbsp;</TD>
</TR>


</TABLE>





<P align="left" style="font-size: 10pt">Dear Ms.&nbsp;Duru:


<P align="left" style="font-size: 10pt; text-indent: 4%">On behalf of Bell Industries, Inc. (the &#147;Company,&#148; &#147;we&#148; or &#147;us&#148;), we enclose for filing, via direct transmission
to the EDGAR system of the Securities and Exchange Commission (the &#147;Commission&#148;) this response to the Commission&#146;s
comment letters dated November&nbsp;24, 2010 and November&nbsp;30, 2010 relating to the Company&#146;s Schedule&nbsp;13E-3 filed on October
1, 2010, as amended on November&nbsp;4, 2010 (the &#147;Schedule&nbsp;13E-3&#148;) and the Company&#146;s Preliminary Proxy Statement on
Schedule&nbsp;14A filed on October&nbsp;1, 2010, as amended on November&nbsp;4, 2010 (the &#147;Proxy Statement&#148;). The enclosed revised
Schedule&nbsp;13E-3 and Proxy Statement are marked to show changes from such documents which were filed via EDGAR on
November&nbsp;4, 2010. For the sake of convenience, we have reproduced each comment below, with our response thereto
following each such comment.

<P align="center" style="font-size: 10pt; text-indent: 4%">&nbsp;

<P align="center" style="font-size: 10pt; display: none">1
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">

<P align="left" style="font-size: 10pt">Ms.&nbsp;Mellissa Campbell Duru
<BR>
Christina Chalk
<BR>
December&nbsp;3, 2010
<BR>
Page 2


<P align="left" style="font-size: 10pt; text-indent: 4%"><U><B>Letter Dated November&nbsp;24, 2010</B></U>


<P align="left" style="font-size: 10pt; text-indent: 4%"><U><B>Schedule&nbsp;13E-3/A</B></U>


<P align="left" style="font-size: 10pt; text-indent: 4%"><U><B>General</B></U>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>1.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U><B>Comment</B></U><B>: We note your response to prior comment 2. Please add Messrs.&nbsp;Schwarz and
Coleman as filing parties. Such persons are affiliates of the issuer who stand on both sides of the
transaction. As noted in prior staff letters, such persons are required to comply with all of the
disclosure and dissemination requirements set forth in Rule&nbsp;13e-3. Refer generally to Compliance &#038;
Disclosure Interpretation 201.05 of the Division of Corporation Finance&#146;s Compliance and Disclosure
Interpretations of Going Private Transactions, Exchange Act Rule&nbsp;13e-3, and Schedule&nbsp;13E-3.</B></TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="10%" align="left"><u>Response:</u></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:4%; font-size: 10pt; text-indent: 4%">Based on the analysis provided in our prior response letters dated November&nbsp;4, 2010 and November&nbsp;18, 2010
and subsequent conversations with the Staff, we do not believe that any further revisions are required in the
Schedule&nbsp;13E-3 or the Proxy Statement with respect to this Comment.


<P>
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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>2.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U><B>Comment</B></U><B>: We note the analysis on page 6 of the response letter that addresses the
Newcastle entities&#146; level of engagement. Please also disclose if true, that the Newcastle entities have
no intention of exercising their present right to convert the Amended Convertible Note in order to
facilitate approval of the reincorporation and reverse stock split transaction.</B></TD>
</TR>

</TABLE>



<P align="left" style="margin-left:4%; font-size: 10pt"><U>Response:</U>



<P align="left" style="margin-left:4%; font-size: 10pt; text-indent: 4%">We confirm that the Newcastle entities have no intention of exercising their present right to convert the
Amended Convertible Note in order to facilitate approval of the reincorporation and reverse stock split
transaction. We have added the following sentence to page 37 of the Proxy Statement:



<P align="left" style="margin-left:8%; font-size: 10pt">&#147;BI Holdings, L.P. does not intend to exercise its present right to convert the Amended Convertible
Note into shares of our common stock in order to facilitate the approval of Proposal No.&nbsp;4 and
Proposal No.&nbsp;5 relating to the Reincorporation and the reverse split.&#148;


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>3.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U><B>Comment</B></U><B>: Please file an amendment to the proxy statement and Schedule&nbsp;13e-3 that gives
effect to the foregoing comments and that includes updated financial information and the proposed revised
disclosures.</B></TD>
</TR>

</TABLE>



<P align="left" style="margin-left:4%; font-size: 10pt"><U>Response:</U>



<P align="left" style="margin-left:4%; font-size: 10pt; text-indent: 4%">Concurrently with the filing of this response letter, we have filed a second amendment to the Proxy
Statement and a second amendment to the Schedule&nbsp;13E-3, which amendments include the revised language
reflected in this response letter, the updated Background section beginning on page 33 of the Proxy Statement,
as set forth in our response letter dated November&nbsp;18, 2010, updated financial information on page 52 of the Proxy Statement and an updated annual meeting date of
January&nbsp;28, 2011 and record date of December&nbsp;13, 2010. Because the annual meeting date is after January&nbsp;21,
2011, the Proxy Statement also includes two new proposals for say-on-pay and the frequency of the say-on-pay
vote.

<P align="center" style="font-size: 10pt; text-indent: 4%">&nbsp;

<P align="center" style="font-size: 10pt; display: none">2
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.50in">

<P align="left" style="font-size: 10pt">Ms.&nbsp;Mellissa Campbell Duru
<BR>
Christina Chalk
<BR>
December&nbsp;3, 2010
<BR>
Page 3





<P align="left" style="font-size: 10pt; text-indent: 4%"><U><B>Letter Dated November&nbsp;30, 2010</B></U>


<P align="left" style="font-size: 10pt; text-indent: 4%"><U><B>Amendment No.&nbsp;1 to Preliminary Proxy Statement</B></U>


<P align="left" style="font-size: 10pt; text-indent: 4%"><U><B>General</B></U>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>1.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U><B>Comment</B></U><B>: We await your response to prior comments 2 and 3 of our letter dated November
24, 2010.</B></TD>
</TR>

</TABLE>


<P>

<P align="left" style="margin-left:4%; font-size: 10pt"><U>Response:</U>



<P align="left" style="margin-left:4%; font-size: 10pt; text-indent: 4%">Please see the above responses to Comments 2 and 3 of the Staff&#146;s letter dated November&nbsp;24, 2010.


<P align="left" style="font-size: 10pt; text-indent: 4%"><U><B>Summary Term Sheet, page 3</B></U>



<P align="left" style="margin-left:4%; font-size: 10pt"><U><B>Reverse Stock Split, page 5</B></U>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>2.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U><B>Comment</B></U><B>: You disclose the price to be paid for fractional shares will be based on the
average closing price of the shares during the 120&nbsp;day period prior to the date of the proxy statement.
Until the price to be paid for fractional shares is established, the staff is unable to pass upon the
adequacy of the disclosure provided throughout the preliminary proxy statement pursuant to Item&nbsp;1014 of
Regulation&nbsp;M-A. Accordingly, please be advised that the staff reserves the right to comment on the
adequacy of the disclosure provided as to the fairness of the transaction to unaffiliated shareholders
once the price to be paid for fractional shares is determined and included in the proxy statement.
Please confirm your understanding.</B></TD>
</TR>

</TABLE>



<P align="left" style="margin-left:4%; font-size: 10pt"><U>Response:</U>



<P align="left" style="margin-left:4%; font-size: 10pt; text-indent: 4%">We confirm our understanding that the Staff reserves the right to comment on the adequacy of the
disclosure provided as to the fairness of the transaction to unaffiliated shareholders once the price to be
paid for fractional shares is determined and included in the definitive Proxy Statement.


<P align="left" style="font-size: 10pt; text-indent: 4%"><U><B>Effects of the Reverse Stock Split, page 37</B></U>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>3.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U><B>Comment</B></U><B>: Other than the effects disclosed under this heading, please supplement your
disclosure to affirmatively state that Messrs.&nbsp;Schwarz and Coleman will be treated in the same manner and
will receive the same benefits as all other shareholders subject to the reverse stock split.</B></TD>
</TR>



</TABLE>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt; display: none">3
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<P align="left" style="font-size: 10pt">Ms.&nbsp;Mellissa Campbell Duru
<BR>
Christina Chalk
<BR>
December&nbsp;3, 2010
<BR>
Page 4



<P align="left" style="margin-left:4%; font-size: 10pt"><U>Response:</U>



<P align="left" style="margin-left:4%; font-size: 10pt; text-indent: 4%">We have added the following sentence to page 37 of the Proxy Statement:



<P align="left" style="margin-left:8%; font-size: 10pt">&#147;Our officers and directors, including Messrs.&nbsp;Schwarz and Coleman, will be treated in the same
manner and will receive the same benefits as all of our other shareholders subject to the reverse
split.&#148;


<P align="left" style="font-size: 10pt; text-indent: 4%">If you have any questions or comments, please telephone the undersigned at (317)&nbsp;704-6000, or in his absence,
Janelle Blankenship at (317)&nbsp;569-4881.


<P align="left" style="font-size: 10pt">Sincerely,


<P align="left" style="font-size: 10pt">/s/ Clinton J. Coleman<BR>
Chief Executive Officer<BR>


<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt; display: none">4




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