DPL Appoints Law Firm to Investigate Conflict Fears.

Mar. 21--There are no oak-paneled offices at 1417 Sadler Road, No. 231, in Fernandina Beach, Fla., no plush leather furniture or artwork on the walls.

In fact, there are no walls at the principal address of Valley Partners Inc.; just the narrow confines of a mail drop at a Mailboxes Etc. location, five miles from the residence of Caroline E. Muhlenkamp.

For most of its existence, Valley Partners, the for-profit company established in May 2001 by Muhlenkamp and DPL Inc. Chairman Peter H. Forster, was virtually unknown outside of DPL's executive suite.

That changed last week, when the Dayton Daily News published an internal memo from DPL Controller Daniel L. Thobe to W. August Hillenbrand, chairman of the DPL board's finance and audit review committee. The memo said that DPL investment subsidiary MVE Inc., of which Muhlenkamp is president, had an agreement with Valley Partners that would have paid Forster and Muhlenkamp an annual fee if DPL were sold.

The DPL board has appointed Cincinnati-based …