BrinkÃ¢â‚¬â„¢s evaluates sale
RICHMOND, Va.Ã¢â‚¬â€Activist hedge fund Pirate CapitalÃ¢â‚¬â„¢s efforts to get The BrinkÃ¢â‚¬â„¢s Company to consider a sale or tax-free spin-off of one of its divisions appears to have yielded some initial results: On Nov. 28, BrinkÃ¢â‚¬â„¢s announced itÃ¢â‚¬â„¢s hired the consulting firm Monitor Group to Ã¢â‚¬Å“assist in the ongoing evaluation of the various strategic options available to the company.Ã¢â‚¬Â
BrinkÃ¢â‚¬â„¢s is the parent company of BrinkÃ¢â‚¬â„¢s Home Security and BrinkÃ¢â‚¬â„¢s Incorporated, the cash-handling business.
Pirate (along with other major shareholders such as MMI) has been after The BrinkÃ¢â‚¬â„¢s Company to consider selling off one of its divisions for more than a year.
Thomas Hudson, manager of Pirate Capital, was appointed to the BrinkÃ¢â‚¬â„¢s Board of Directors in February 2007. In an interview with Security Systems News on Feb. 15, Hudson said he foresees Ã¢â‚¬Å“material progress toward the sale of BrinkÃ¢â‚¬â„¢s within 12 months.Ã¢â‚¬Â (Search Ã¢â‚¬Å“Pirate predictsÃ¢â‚¬Â at www.securitysystemsnews.com.)
In an email interview Nov. 28, Chris Kelly, general counsel for Pirate Capital said, Ã¢â‚¬Å“We are pleased that with the retention of Monitor. BrinkÃ¢â‚¬â„¢s is reinvigorating its assessment of shareholder positive initiatives, including a possible tax-free spin off. Tom Hudson, PirateÃ¢â‚¬â„¢s representative on the BrinkÃ¢â‚¬â„¢s board, looks forward to working with Monitor to ensure that the company charts a course that will maximize the value of this great franchise.Ã¢â‚¬Â
Ed Cunningham, spokesman for the BrinkÃ¢â‚¬â„¢s Company, emphasized that the review of strategic alternatives is an Ã¢â‚¬Å“ongoing processÃ¢â‚¬Â and that the company is Ã¢â‚¬Å“committed to conducting a dynamic review.Ã¢â‚¬Â Asked about the timeframe for completion of the Monitor review, Cunningham said none had been disclosed.
The press release issued by BrinkÃ¢â‚¬â„¢s said: There is Ã¢â‚¬Å“no assurance as to the outcome of the companyÃ¢â‚¬â„¢s re-examination of strategic alternatives.Ã¢â‚¬Â