Starboard Wants Shareholder Vote On Red Lobster Spin-Off

Feb 24 2014 | 10:12am 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

Q&A: Reg A+ Will Transform the Alternative Asset Landscape

Jul 7 2015 | 4:03pm ET

In addition to easing capital formation for small companies, Regulation A+ has enormous...

Lifestyle

Fiat Chrysler Files Paperwork For Ferrari IPO

Jul 23 2015 | 5:05pm ET

Italian sportscar maker Ferrari has taken a step closer to a stock market listing...

Guest Contributor

6 Essential Principles To Balance Your Investment Risk

Jun 26 2015 | 10:07am ET

In this article, financial expert Greg Silberman explores how to hedge a private...

 

Editor's Note