Large Cornell Cos (CRN) Holder Wynnefield Wants Company To Remain Independent
In an amended 13D filing on Cornell Companies Inc. (NYSE: CRN) Friday afternoon, Wynnefield Partners and related funds disclosed a 17.5% stake in the company saying they "continue to believe that the shareholders would best be served if the Company were to remain an independent entity and participate in the growth opportunities that exist in the private corrections industry."
The group said a recent news release regarding Criminal Alien Requirement 6 highlighted another example of the growth opportunities available to the Company. They also noted that in a research report dated January 19, 2007 regarding Cornell, Patrick Swindle of Avondale Partners, LLC wrote: "CRN [Cornell] appears to have meaningfully improved its position with what appears the addition of 500+ inmates based on our analysis." -and- ". . . these extra inmates could add $10.0 million in incremental revenue and $2.0 million - $2.5 million in incremental EBITDA at full capacity."
In October, Cornell agreed to be acquired by Veritas Capital for $18.25 per share in cash. Shares of Cornell $19.30 on Friday.