Pirate Capital Makes Nice With Angelica

Sep 26 2007 | 7:46am ET

Activist hedge fund Pirate Capital got some desperately needed good news last week, when portfolio company Angelica Corp. announced it is looking into a sale of itself.

Norwalk, Conn.-based Pirate, which has been buffeted by investment losses and huge redemptions this year, forcing it to suspend redemptions in two of its funds, agreed to end its proxy battle with linen and uniform provider Angelica following Angelica’s announcement and agreement “to reimburse a portion of Jolly Roger’s expenses” incurred during the proxy campaign.

Pirate had sought the election of two candidates, including Pirate founder Thomas Hudson, to the board of the Chesterfield, Mo.-based company. The hedge fund owns about 10% of Angelica.

In a letter to Angelica yesterday, Hudson wrote, “Pirate Capital Group hereby confirms it will not nominate, or solicit proxies for the election of, other persons at the 2007 Annual Meeting.”

Angelica last week announced it had directed investment bank Morgan Joseph to pursue a possible sale of the company.


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