Brink’s Co. could face a proxy contest down the road if it doesn’t improve its share price, reports The Deal’s Ron Orol. Last week, Starboard Value’s Jeff Smith reported owning an 8.2% stake in the armored-car transport company. People familiar with Smith’s thinking told Ron that the activist has had discussions with Brink’s officials and he’s concerned about how the company has underperformed compared to its rival, Loomis AB. Between 2012 and 2015, Loomis shares have risen on the Stockholm Stock Exchange from 83 krona a share to 251 a share. At the same time, Brink’s stock has traded between $21 and $27 a share, only jumping to about $33 after Starboard made its May 4 activist filing. A Brink’s spokesman said company officials have ‘discussed’ a wide range of topics with Starboard and that its board and management team ‘welcome constructive input’ from investors on how to create additional value. Back in December, Mario Gabelli’s Gamco reported owning an 8.14% stake in Brink’s. Imperial Capital analyst Jeff Kessler suggests that Brink’s has until the end of 2015 to improve its operating margins and share price or it will face an escalating Starboard or Gabelli campaign.
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