Pirate Capital's Activist Website BadAquilaDeal.com Offers a Free T-Shirt

Yesterday afternoon, Pirate Capital LLC announced a website www.badaquiladeal.com that discusses its view that the transaction between Great Plains (NYSE: GXP) and Aquila (NYSE: ILA) substantially undervalues Aquila.

On the website there is a presentation from Pirate Capital illustrating the shortcomings of the deal. There is also links for comments, the e-mail of Aquila's CEO, and strangely a link for a Free T-Shirt (First 1,000 people, Large Sizes Only).

In its presentation, Pirate Capital makes the case that Aquila is worth $4.50-$5.00 per share currently and said with certain alternative actions the stock could be worth $5.00-$5.50 per share, on a present value basis. The firm said the current Great Plains transaction values Aquila at $4.10-$4.24 per share, on a present value basis.

Pirate Capital disclosed a 17.55 million share stake in Aquila, which is just below the 5% threshold for a 13D.

Pirate Capital Continues to Adjust Portfolio, Sells 6M Shares of Aquila (ILA)

In an amended 13D filing on Aquila Inc. (NYSE: ILA) this morning, Pirate Capital disclosed an 18.7 million share stake (5%) in the company. This is down from the 24.7 million share stake the firm held for the quarter ended September 30, 2006.

Pirate Capital has been adjusting a number of positions recently following the hedge funds shake-up in the fall.

The selling at the fund appears to far outweigh the buying, which could be related to redemptions. But recent activist activity in Brinks and increased stakes in other core holdings shows that the fund plans on being around for a while.

Here are some other notable changes in the fund's positions since the September 30th 13F

James River Coal Company (Nasdaq: JRCC) stake lowered from 2.34 million shares to 679K shares

Mirant Corporation (NYSE: MIR) stake lowered from 4.15 million shares to '0'

CEC Entertainment (NYSE: CEC) stake lowered from 3.045 million shares to 2.44 million shares
The Pep Boys (NYSE: PBY) stake raised from 5.62 million shares to 6.6 million shares

PW Eagle (Nasdaq: PWEI) stake raised from 2.81 to 2.94 million shares

Brinks Co. (NYSE: BCO) stake raised from 3.95 million to 4.12 million shares