Starboard Sues Darden For Books

Jul 25 2014 | 3:34pm ET

Hedge fund Starboard Value is keeping up the pressure on Darden Restaurants, asking a court to force the company to turn over its financials.

Starboard, which opposes Darden’s plan to sell its Red Lobster chain to a private-equity firm and which has launched a proxy contest to throw out Darden’s entire board, has now sued the company. The hedge fund said Darden has employed “months of maneuvers” to prevent shareholders from having a say in its affairs and has refused to provide requested information for two months.

Darden responded that Starboard’s requests were “overbroad” and sought “privileged” information.

“Darden has sought, through good-faith negotiations with Starboard, to address the issues raised by its demand, including the need to protect the confidentiality of Darden’s books and records by entering into a customary confidentiality agreement,” the company said.

Starboard, which owns a 7.1% stake in Darden, said that the company left it “no choice” but to sue after demanding it narrow its request.


In Depth

GSAM's Papagiannis: Liquid Alternatives For The Long Run

Apr 21 2017 | 8:44pm ET

Interest in liquid alternatives cooled a bit last year amid a broad shift in investor...

Lifestyle

Aston Martin Returns To Debt Market As DB11 Drives Turnaround

Mar 31 2017 | 5:21pm ET

James Bond’s preferred carmaker is returning to the public debt markets for the...

Guest Contributor

Debunking Conventional Investment Wisdom (Part II)

Apr 17 2017 | 5:56pm ET

The alternative investment industry is currently replete with buzzwords around data...

 

From the current issue of