Hedge Funds

Pirate Capital calls for United Capital spinoff

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Westchester County, N.Y.-based Pirate Capital, home of the Jolly Roger Fund, this week called upon United Capital Corp. to create a spinoff.

Pirate, which is one of United's largest shareholders, says the company should spinoff all of its engineering and manufacturing divisions so that it can focus on its core competency of real estate management.

In a letter to the chairman of the board, A. F. Petrocelli, Pirate pitched the idea of turning United into a real estate investment trust. United Capital's engineering division manufactures knitted wire products and transformers that generated $38 million in revenues last year.