June 13, 2006

Hedge Fund to Attempt Takeover?

Activist hedge fund Private Capital LLC is baying for the blood of energy company Mirant. The hedge fund, which has a 1.6 percent stake in Mirant, has said that it will attempt a takeover of the board if Mirant does not publicly announce plans to sell itself by June 14. Mirant had earlier made an unsuccessful bid for contemporary NRG Energy, which declined Mirant’s offer citing its share appreciation as a reason not to sell. Market Watch reports:

Pirate will try to call a special shareholder meeting to gain control of the company's board, the fund said. "If successful, our nominees would then constitute a majority of the board of directors," Pirate manager Thomas Hudson wrote in a letter to the board that was filed with the Securities and Exchange Commission on Monday.

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June 13, 2006 in Gossip & Scandal | Permalink




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