NEW YORK - U.S. security company Brink's 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% 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% 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, General Electric and Siemens, Barron's said, citing analysts. Those suitors could pay from $70 to $81 for a quickly accretive deal.