Thursday, 26 November 2015
Last updated 1 day ago
Nov 21 2013 | 10:46am ET
Barington Capital Group is preparing to go to war to split Darden Restaurants.
The activist hedge fund, which last month called for the company to hive off its lower-performing brands, including the Olive Garden and Red Lobster, has hired proxy solicitation firm MacKenzie Partners, indicating that it plans to fight to get its way. The New York-based firm also engaged investment bank Houlihan Lokey to conduct an "independent review" of Darden's operations.
"Although Darden's performance has been disappointing over the past few years, we are convinced that the recommendations we shared with the company's management team in June can meaningfully enhance the long-term profitability of Darden," Barington CEO James Mitarotonda said. Despite the hiring of MacKenzie, The New York Times reports that relations between the hedge fund and Darden remain cordial.
Barington owns a 2.8% stake in Darden. It argues that its proposals, which include focusing on its higher-growth brand and extracting value from its vast real-estate holdings, could boost the company's stock price by 50%.
Oct 21 2015 | 10:41am ET
One of the most unique charity benefits in the hedge fund industry, A Leg To Stand On's (ALTSO's) Hedge Fund Rocktoberfest - NYC, raised nearly $500,000 last Thursday thanks to the generous support of major sponsors and nearly 1,400 attendees from the Tri-State finance, business and hedge fund communities. Read more…