Rural/Metro Corp. (MM) (RURL) Quote

8:20 (Dow Jones) Rural/Metro (RURL), a provider of ambulance and
fire-protection services, has been subject of takeover speculation as Falck
Danmar, the largest ambulance provider in Scandinavia, and Coliseum Capital, a
firm with an activist designation, became the largest two holders of the thinly
traded stock. Still, RURL may have become more attractive to private equity
after concluding a debt refinancing in November that cut interest costs and
added financial flexibility. RURL agrees to be taken private by PE firm Warburg
Pincus for $17.25/share, a 37% premium to Friday's close but only 8.8% higher
than the stock's decade-high set in February. (george.stahl@dowjones.com)

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03-28-11 0820ET

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08:20 032811

It took much longer than I had expected but Nice Run from the $6's.

buyout 17,25 $

Nice buying coming in today!

Falk keeps buying more RURL: http://secfilings.com/searchresultswide.aspx?link=2&filingid=7005617

Looks to me like a Buy Out is coming: http://in.reuters.com/article/privateEquity/idINLDE5BG12L20091217

Plus, check the Filings...they just keep buying RURL shares.

UPDATE 1-Ambulance service firm Falck says owners plan IPO
Thu Dec 17, 2009 6:13pm IST


* Says picking advisors for possible public offering

* Would be first big IPO in Denmark for many years

(Adds detail, background)

COPENHAGEN, Dec 17 (Reuters) - Danish ambulance service, rescue and safety group Falck said on Thursday its private equity owners were preparing an initial public offering of shares in the company.

The offering would be the first big Danish bourse listing in about five years.

"The board is currently in the process of selecting advisers for the company's potential IPO," Falck said in a statement.

Financial daily Borsen said the IPO could take place as early as in the first half of 2010 and that the company could be worth 9 billion Danish crowns ($1.8 billion).

Falck is the largest privately held ambulance company and also the biggest private fire-fighting service in Europe, according to its website. It operates in 23 countries.

The principal shareholders in Falck are Nordic Capital Fund V and ATP Private Equity Partners.

Falck was spun off from the security company formed by the 2004 takeover of Group 4 Falck by Britain's Securicor, which is now called G4S (GFS.L: Quote, Profile, Research).

"Falck faces substantial international growth. The business with its entire organisation has many development opportunities," said outgoing Chairman Christian Dyvig.

The most recent major IPO in Denmark was insurer TrygVesta's (TRYG.CO: Quote, Profile, Research) in 2005.

Last month, small budget airline Cimber Sterling (CIMBER.CO: Quote, Profile, Research) was listed in the first IPO in Denmark in years. Danish telecom operator TDC (TDC.CO: Quote, Profile, Research) is widely tipped as a candidate for a big stock offering by its private equity owners.

(Reporting by John Acher and Anna Ringstrom; editing by John Stonestreet) ($1=5.108 Danish Crown)

Question: Why did ex-CEO Jack Brucker exercise his Warrants (about 350,000 shares) in November and then step down from his position and leave the company earlier this month? Could be that he had no-idea he would be leaving. Of course, that makes no difference to the IRS who will expect him to pay the taxes on the difference in Exercise Price and share price at the time he exercised them. Additionally, he had been Buying shares of the company's stock on the open market in 2009 making him a CEO that is very bullish on his company.

One thought could be that the CEO knows that the company will be acquired. He therefore knows that he has no position in the company going forward as the acquirer will eliminate his role in the acquisition of the company. Okay, suppose that is the case: would it make sense for him to exercise his warrants so that he can have them free to trade on the announcement of an acquisition? Makes sense to me! Who knows if the company will be acquired but it is interesting that Falck Danmark AS has been acquiring shares on the open market. From their website:

"Falck is a Scandinavian based organisation with business activities in most areas of Europe and on five continents. It consists of four different business areas, Assistance, Emergency, Healthcare and Training. Falck’s activities are directed at preventing accidents and disease; providing assistance in situations of emergency, accidents or need; and helping people move on with their lives after illness or accidents.

Falck is the largest privately owned ambulance company in Europe, providing ambulance services to the general public in seven countries in close collaboration with the authorities. Falck is also the largest privately operated fire fighting service in Europe with activities in six countries."

Personally, I think it is likely that Falck is going to take over the company. This is just conjecture on my part but seems likely. With Free Cash-Flow of $1.50 per share, EBITDA of $70 Million, and 24.8 Million Shares outstanding...I think the company could be worth as much as $13 per share and would tuck into Falck very nicely.

HUGE, I mean H-U-G-E Insider Buying going on with RURL. That has got to mean good things going forward.

I have take a position in Rural/Metro Corp. (RURL). RURL is currently down because of a rumor that the CEO left because one of their offices was “over-billing”. Many of their businesses operate independently and I do not think this is a long-term issue. The company has an EBITDA of about $65 Million and I think is currently under-valued. Also, this looks like it could be a buy-out target for a larger aggregation.