SAN FRANCISCO (MarketWatch) — Pirate Capital LLC questioned Mirant Corp.’s efforts to acquire rival NRG Energy Inc. and said the company should instead put itself up for sale, according to a Securities and Exchange Commission filing by the activist hedge fund Thursday.
In a June 1 letter to Mirant Chief Executive Edward Muller, Pirate Capital said consolidation in the power industry is necessary but warned that the Atlanta-based energy company shouldn’t be the one pursuing acquisitions.
Pirate Capital, which oversees almost $2 billion in assets and owns 1.6% of Mirant’s shares, is among a group of hedge funds that have begun targeting the companies in which they invest and openly criticizing management to force changes.
The firm’s Jolly Roger funds, run by Thomas Hudson, have generated strong returns recently, attracting lots of new investors.
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