Pirate Capital Pushing James River Off The Plank?

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Pirate Capital sold off a significant portion of its stake in James River Coal Company last week, according to recent SEC filings. Two funds managed by Tom Hudson and his pirates began selling off shares in James River last Wednesday at $9.91 per share. All told, the Pirate funds sold 868,973 shares for just under $10 per share on average.
As late as July, Pirate was still picking up shares of stock, according to SEC filings, and paying far more than last week’s selling price. The Jolly Roger Activist fund bought 400,000 shares in July, paying between $33 and $36 per share. Most likely the fund was obligated to purchase these shares when Merrill Lynch International exercised a put-option Pirate had agreed to as part of a back-to-back call and put option agreement signed up in January of 2006.
Pirate continues to own a significant stake in James River. According to its financial disclosures, it currently holds 8.8% of the outstanding shares.
Pirate Capital's Schedule 13D [SEC]

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