Brink's Company
(NYSE:BCO) board member and activist investor Thomas Hudson of Pirate
Capital demanded in a letter that the security services provider
consider a tax-free split-up of the company. The news comes after
Pirate Capital's long-publicized battle with the company to unlock
shareholder value. Many are hoping that the large support for a
break-up may finally do just that!
A survey of shareholders,
conducted by D.F. King & Co., polled 90.17% of the outstanding
Brink's shareholders and found that 49.4% of them wanted the company to
pursue a split-up while 66.95% said that they would like the board to
review the possibility of a split-up. Hudson was quick to point out
that if management did not consider the possibility of a split-up by
the next election, shareholders could put them out of a job.
"While
a sale of the company, as opposed to a tax-free split-up, could be more
lucrative to you under your change of control agreement with Brink's,
potentially enriching you with millions of dollars, I believe the
survey is conclusive as to the large shareholder preference for a
split-up," Hudson said in the letter.
Hudson's Pirate Capital
currently holds an 8.6% stake in the company and would stand to gain
substantially from any measures intended on unlocking shareholder
value. This makes BCO a stock
worth watching!
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