Through The Fly's Eyes: Pirate Capital

from Theflyonthewall.com








Pirate Capital Pressures Angelica to Pursue Alternatives

This morning, Pirate Capital, a well known activist fund, reported a 9.9% stake in Angelica Corp. (AGL), a provider of outsourced linen management services to the U.S. healthcare industry, and said they wanted the company to explore “strategic alternatives,” including a possible sale of the company. Pirate capital said that they had “exhausted” their patience with Angelica's management and that the company should engage an investment firm to help them explore a sale, sell of assets, or find another "extraordinary transaction."

Pirate Capital has had good success and this could be their next "turnaround play." What they failed to mention, however, is they recently reduced their stake to 9.9% from the 11.4% reported several weeks ago on May 25th. Nonetheless, shares are trading up just over 5% today; shares are up $1.18 to $22.26.