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Pirate Capital LLC took a victory lap this week related to its investment in PW Eagle, Inc. (OTC:PWEI), which earlier in the week agreed to be acquired by J-M Manufacturing for $400 million, or $33.50 per share.

Tom Hudson, the head of Pirate, said, "We are very pleased with the proposed merger". Hudson said his firm encouraged the company to take initiatives to benefit all of their shareholders for some time.

Pirate noted they began accumulating its 22% stake at $21.61 per share over the last eleven months for an average purchase price of $26.03 a share (indicating a 29% gain on the investment).

Pirate Capital has been the subject of much negative speculation related to redemptions following the hedge fund's fall 2006 shake-up.

Source: Pirate Capital Pleased With PW Eagle Merger Agreement