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.


In Depth

Q&A: Reg A+ Will Transform the Alternative Asset Landscape

Jul 7 2015 | 4:03pm ET

In addition to easing capital formation for small companies, Regulation A+ has enormous...

Lifestyle

Hedgies Set to Compete in Wall Street Decathlon

Jun 8 2015 | 12:37am ET

The Wall Street Decathlon — a 10-event physical challenge that will crown “Wall...

Guest Contributor

6 Essential Principles To Balance Your Investment Risk

Jun 26 2015 | 10:07am ET

In this article, financial expert Greg Silberman explores how to hedge a private...

 

Editor's Note