Plumbing – How to remove the tub diverter

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I replaced my cold and hot water valves a while back and now it seems like it's time to replace the diverter. When running the water to the tub, some water comes out of the shower head. I've tried to disassemble the diverter valve as much as I can but I can't get the stem out. I've tried spraying some penetrating oil in but nothing seems to budge.

So I guess my question is: what next? Does the stem just pull out at this point or is this large nut (~1 1/8") supposed to be removed first? I can't make either budge.

Here are some pictures.

Before:

Before

With cover removed:

With cover removed

Retaining piece:

Retaining piece

Stem with retaining piece removed:

With retaining piece removed

Click for full size image

Best Answer

Just got the diverter out of the wall. It turns out the diverter was threaded in and needed to be removed. Here's a picture of the full diverter. The piece on the upper-right was what needed to be un-threaded. A pair of vice grips and a hammer did the trick:

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