Hedge Funds Seek Brink’s Break-Up

RICHMOND, Va. – Break-up fever has afflicted Brink’s Co., the venerable bank security firm under attack by raiders in recent months, as a hostile hedge fund is urging the Brink’s board to break-up the company. MMI Investments, one of two hedge funds that have built up major stakes in Brink’s called on the company to spin off one of its two main operating units, institutional security or home security, to Brink’s shareholders. MMI, which has accumulated an 8.3% stake in Brink’s, joined another hedge fund known as Pirate Capital in seeking board representation at Brink’s last fall. The effort fizzled after Brink’s announced a doubling in fourth quarter and annual profits, but Brink’s agreed to give Pirate a board seat, anyway. The attack on Brink’s comes amid a rush of spin-offs among credit union tech deals and spin-offs, including this week’s announcement that Marshall & Ilsley will spin off its Metavante unit.