Third Activist Hedge Fund Takes Aim At Brink’s

Jan 10 2008 | 8:13am ET

Another activist hedge fund has joined the raid on the Brink’s Company. Steel Partners on Tuesday warned the security company famous for its armored trucks to seek a spin-off or sale, or else. It also disclosed a 6.2% stake in Brink’s.

“Steel Partners II believes that significant shareholder value would be unlocked if the issuer were to pursue a tax-free spin-off of one of its two business segments,” the hedge fund wrote. Steel further demanded an immediate sale of Brink’s if it does not pursue a spin-off, and called on the company to increase its stock buyback plan fivefold to $500 million.

Steel is the third activist hedge fund to express its unhappiness with Brink’s’ efforts to boost its stock price. Both Pirate Capital and Millbrook Capital Management have sought a tax-free spin-off, with the latter nominating a slate of board candidates for the company’s 2008 annual meeting. In November, Richmond, Va.-based Brink’s said it had retained the Monitor Group to investigate strategic alternatives for the company.


In Depth

'Smart Beta' Funds In Regulators' Sights, Hedgies May Be Next

Mar 26 2015 | 11:11am ET

Funds that mimic strategies used by active managers for a fraction of the cost could...

Lifestyle

Study: Both Marriage and Divorce Lead to Negative Hedge Fund Performance

Mar 25 2015 | 6:51pm ET

Trouble at home leads to trouble in the market for fund managers, according to researchers...

Guest Contributor

Concerned About Your HFT Exposure? Hedge It!

Mar 26 2015 | 1:06pm ET

High-frequency trading has been a persistent storyline for several years. The trading...

 

Sponsored Content

    Mar 9 2015 | 6:35am ET

    Kelly RodriquesKelly RodriquesAs more investors look to diversify, many are beginning to use retirement funds to invest in alternative assets such as private equity and real estate. Kelly Rodriques, CEO & President of PENSCO Trust Company, explains how companies can connect with those looking to use their retirement accounts in a different way. Read more…

Editor's Note