Checking Giuliani's Ties

Argyle Security Acquisition(ARGL Quote - Cramer on ARGL - Stock Picks) of San Antonio is a so-called blank check company that went public with the express purposes of buying other companies, in this case those in building security. Argyle has the distinction of being a homeland security play that, by having retired Gen. Wesley Clark as a director, hits the security industry's version of the daily double. The running joke among homeland security investors is that smaller companies "either put General (and former presidential candidate) Wesley Clark on their board or get a consulting agreement with Giuliani Partners," says Altucher.

Argyle Security has done both: Clark sits on the board and owns more than 70,000 shares, while Giuliani Partners served as financial adviser on Argyle's December acquisition of San Antonio-based ISI Detention Contracting Group, one of the nation's largest providers of detention equipment products and service solutions.

Giuliani Partners' fee for its advisory role will not be disclosed until the company submits its S4 filling with the SEC. That could come as early as next week, says Bob Marbut, Argyle Security's chairman and co-CEO, who generally praised Giuliani Partners and expects to use the firm's services for future transactions.

Giuliani Partners offered the "full range of advisory services plus their knowledge of the industry and [its] players," Marbut says, citing the particular expertise of Paul Talley and Walter Bailey, who joined Giuliani Partners in April 2006 as co-heads of security and defense investment banking. "Their knowledge and Rudy's capabilities we thought was a winning combination."

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