Brinks Co. (BCO) May Get More Pressure to Sell Says Barron's
U.S. security company Brink's Co. (NYSE:BCO - News) may this week be urged by yet another major investor to sell part or all of itself, according to Barron's.
Millbrook Capital Management, a New York hedge fund that controls 8.3 percent of outstanding Brink's shares, will join the ranks of investors who want Brink's to consider a sale, the financial newspaper said in its December 18 issue.
Activist hedge fund Pirate Capital said last month Brink's should explore a sale of the company, start a large Dutch tender offer for its shares, and immediately appoint Pirate founder Thomas Hudson to its board.
Millbrook's proposal is expected to be outlined in a regulatory update of stock-ownership disclosure, the paper said. By Millbrook's estimates, buyout firms could pay $70 to $73 a share and still generate a 22.5 percent internal rate of return, the paper said. Brink's shares closed on Friday at $60.17 on the New York Stock Exchange.
Potential strategic buyers could include United Technologies Corp. (NYSE:UTX - News), General Electric Co. (NYSE:GE - News) and Siemens AG (XETRA:SIEGN.DE - News), Barron's said, citing analysts. Those suitors could pay from $70 to $81 for a quickly accretive deal.
-Reuters
Millbrook Capital Management, a New York hedge fund that controls 8.3 percent of outstanding Brink's shares, will join the ranks of investors who want Brink's to consider a sale, the financial newspaper said in its December 18 issue.
Activist hedge fund Pirate Capital said last month Brink's should explore a sale of the company, start a large Dutch tender offer for its shares, and immediately appoint Pirate founder Thomas Hudson to its board.
Millbrook's proposal is expected to be outlined in a regulatory update of stock-ownership disclosure, the paper said. By Millbrook's estimates, buyout firms could pay $70 to $73 a share and still generate a 22.5 percent internal rate of return, the paper said. Brink's shares closed on Friday at $60.17 on the New York Stock Exchange.
Potential strategic buyers could include United Technologies Corp. (NYSE:UTX - News), General Electric Co. (NYSE:GE - News) and Siemens AG (XETRA:SIEGN.DE - News), Barron's said, citing analysts. Those suitors could pay from $70 to $81 for a quickly accretive deal.
-Reuters
Labels: Barron's, BCO, Brinks Co., GE, UTX
posted by Stock Administrator @ 8:13 PM
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