Pinkerton’s Repurchases Warrants for $3.1 Million

Pinkerton’s Inc., a Van Nuys security services company, said it repurchased warrants of Pinkerton’s that were held by Manufacturers Hanover Corp. for $3.1 million.

The warrants, which give the holder the right to buy Pinkerton’s stock at a specified price within a certain period, were issued to the New York-based bank holding company in conjunction with CPP Security Service’s purchase of Pinkerton’s from American Brands in January, 1988. (CPP changed its name to Pinkerton’s after the merger.)

Each warrant would have entitled Manufacturers Hanover to buy one Pinkerton’s share for $9.01. After Jan. 19, the warrants also would have entitled the company to require that Pinkerton’s repurchase the warrants at the stock’s prevailing market price, less the warrant’s original exercise price of $9.01 a share.

Because Pinkerton’s stock had been rising recently, the company decided to repurchase the warrants now at a price effectively equaling $21.625 per share--the stock’s approximate trading price lately--rather than risk a higher payment later if the stock continued to rally.

“In short, we acted in order to save the company from paying even more in the future,” Pinkerton’s Chairman Thomas W. Wathen said in a statement.