Pirate Capital Buys a 7% Stake in CKE

Pirate Capital, a hedge fund run by Thomas R. Hudson Jr., paid $58.8 million for a 7% stake to become the biggest shareholder in CKE Restaurants Inc., which operates the Hardee’s and Carl’s Jr. fast-food chains.

In a filing with the Securities and Exchange Commission, Hudson said he considered the shares to be “substantially undervalued.” Pirate, based in Norwalk, Conn., paid $13.35 to $16.35 each for its 4.2 million shares purchased since Jan. 3.

Shares of Carpinteria, Calif.-based CKE Restaurants rose 18 cents to $16.53.