Pirate May Push Two To The 'Brink's'

Dec 19 2006 | 1:44pm ET

Activist hedge fund manager Pirate Capital yesterday filed regulatory documents stating that it may propose two new nominees to be elected to the board of The Brink’s Company, which has already been under pressure in recent days from another hedge fund, MMI Investments.

In the regulatory filing, Pirate, which holds an 8.5% stake in the armored car manufacturer, states that is has yet to hear from the company regarding its request that Pirate founder Thomas Hudson be appointed to its board of directors.

“The Issuer has not responded to Pirate's request that Thomas R. Hudson Jr. immediately be appointed to the Issuer's Board of Directors other than to indicate that Mr. Hudson's nomination for election to the Board will be considered in due course,” states the firm in the Schedule 13D filing. “Pirate is now contemplating proposing two additional nominees for election at the upcoming annual meeting.”

New York-based hedge fund MMI Investments, which owns an 8.3% stake in Brink’s, stated in a regulatory filing on Friday that the company should consider various options to increase shareholder value, including a leveraged buyout or a recapitalization. MMI said the company has suffered from "chronic and severe undervaluation."

“We believe BCO’s brands, financial performance, market positions and management are among the best in its industry. We therefore remain extremely frustrated with its continued undervaluation relative to its operating success, its peers’ trading multiples and the value it might achieve from pursuing one of several potential strategic alternatives.”

Pirate first raised the issue of Brink’s exploring a sale in mid-November. Since that time, shares in the company have risen from $55.21 (Nov. 21) to $63.70, where they closed yesterday.


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