Starboard Value Drops Red Lobster Vote

Jun 3 2014 | 2:34am ET

Hedge fund Starboard Value is abandoning what would have been a symbolic vote at Darden Restaurants to concentrate on one with teeth.

The activist had won enough support from shareholders to force a vote on Darden’s plan to sell or spin-off its Red Lobster chain. But the company announced last month that it planned to sell Red Lobster to private-equity firm Golden Gate Capital for $2.1 billion anyway, with plans to close the deal in August before the non-binding vote.

Starboard threatened a proxy fight to oust Darden’s entire 12-member board should it move forward with the Red Lobster sale. Yesterday, it withdrew its request for a special shareholder meeting and will instead focus on the board-control battle. The hedge fund said that the Golden Gate deal was “poorly structured, and clearly value destructive.”

Starboard owns a 5.5% stake in Darden and has pushed for a much more radical break-up plan.


In Depth

Steinbrugge: Will Hedge Funds Help or Hurt During the Next Market Correction?

Sep 7 2016 | 11:55pm ET

Most investors have become accustomed to quick rebounds when markets correct, but...

Lifestyle

Quattrex Sports AG Debuts Soccer-Focused UCITS Fund

Sep 9 2016 | 9:54pm ET

Innovative alternative investment company Quattrex Sports has unveiled a new UCITS...

Guest Contributor

Malik: The Ever-Changing Middle Market and The Entering Class of 2016

Sep 2 2016 | 5:01pm ET

Deal sourcing and origination is only going to get more competitive given current...