Starboard Wants Shareholder Vote On Red Lobster Spin-Off

Feb 24 2014 | 11:12am ET

Activist hedge fund Starboard Value is demanding that Darden Restaurants seek shareholder approval for a spin-off plan it opposes.

The firm is seeking a special meeting in advance of Darden's September annual meeting to give stockholders an opportunity to weigh in on Darden's proposal, which would separate Red Lobster from its seven other chains. Starboard has called the plan "ill-conceived and potentially value destructive;" it and fellow activist hedge fund Barington Capital Group are pushing a more radical break-up plan for Darden.

Starboard needs to win 50% shareholder support in the next 60 days to force the meeting, where it would offer a non-binding proposal opposing Darden's Red Lobster plans. Darden has said it wants to complete the spin-off early in the second half, prior to the annual meeting; Starboard has warned it will seek the ouster of its entire board at that meeting if it does.


In Depth

PAAMCO: Will Inflation Deflate the Asset Bubble?

Jan 30 2018 | 9:49pm ET

As the U.S. shifts from monetary stimulus to fiscal stimulus, market pricing should...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Boost Hedge Fund Marketing ROI By Raising Your ROO

Feb 14 2018 | 9:57pm ET

Tasked with delivering returns on client capital, a common dilemma for many alternative...

 

FINalternatives Trending

From the current issue of