The Brink's Company (NYSE:BCO) said that it had reached an agreement with Pirate Capital in which Thomas Hudson would receive a seat on the board in exchange for withdrawing his hostile proposals. The company said Hudson will serve on the strategy, pension and finance, and executive committees. This move marks a turning point in a long-standing battle between the two parties after Pirate amassed an 8.5% stake (their second largest) in the company and demanded that they retain an investment bank to explore a possible sale of the company. The hedge fund argued that the company would be worth between $68 and $72 per share in the event of a buyout.
Their efforts gained traction last December of last year when
MMI Investments joined Pirate in the fight, saying: "Another large stockholder has raised the question of BCO pursuing a
strategic alternatives review and indicated that it intends to submit a
stockholder proposal to that effect at BCO’s 2007 annual meeting of
stockholders. As we understand the proposal described in their Schedule
13D amendment, we are in support of it." With the new board seat, Pirate will likely be able to establish a committee to explore strategic alternatives which could result in an LBO, sale to a strategic suitor, tax-free split-up of the company,
leveraged recapitalization, or another significant stock repurchase. Either way, BCO is definitely a stock worth
keeping an eye on over the next few months!
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