Pirate’s Carrot-and-Stick Approach With Brink’s

Oct 1 2007 | 3:48pm ET

He’s managing less and less money with every passing day. Has Pirate Capital founder Thomas Hudson also lost his poison pen?

Just a week after the Norwalk, Conn.-based activist hedge fund manager made peace with one portfolio company, he had (somewhat) kind words for another, telling security company Brink’s Co. that allowing its poison pill provision to expire was “a small step forward in improving corporate governance.”

But it’s not good enough for Hudson, whose firm has seen asset levels fall by more than 60% this year and has suspended redemptions from its two activist funds. In the letter, Hudson demands that Brink’s do away with its staggered board elections, as well as allowing shareholders to call for special meetings and to name an independent director chairman.

“The chairman of the board and CEO are two very different positions that we believe should not be filled by one individual” as it currently is, Hudson wrote.

Pirate owns about 4.5% of Brink’s.


In Depth

Q&A: Rotation Capital's Rothfleisch On SPAC 2.0

Aug 11 2017 | 7:43pm ET

Corporate actions have long been a staple of event-driven investors, but activity...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Star Mountain: Private Lending in the Lower Middle-Market

Aug 14 2017 | 4:45pm ET

Private credit has become one of the most popular alternative asset classes in recent...

 

From the current issue of