News Column

BRIEF: Starboard gives up on Red Lobster meeting

June 3, 2014

By Sandra Pedicini, Orlando Sentinel

June 03--Hedge fund Starboard Value has resigned itself to Darden Restaurants'Red Lobster sale, saying Monday it has withdrawn its request for a special shareholder meeting to discuss it.

Starboard had persuaded holders of 57 percent of Darden stock to call for a meeting to weigh in on Darden's plans to sell or spin off the seafood chain.

Last month, Darden announced it had reached a deal with private equity firm Golden Gate Capital, which will buy Red Lobster for $2.1 billion. The sale is expected to close in August.

In a news release, Starboard called the sale "poorly structured, and clearly value destructive." Starboard is now trying to replace Darden's board of directors.


(c)2014 The Orlando Sentinel (Orlando, Fla.)

Visit The Orlando Sentinel (Orlando, Fla.) at

Distributed by MCT Information Services

For more stories on investments and markets, please see HispanicBusiness' Finance Channel

Source: Orlando Sentinel (FL)

Story Tools Facebook Linkedin Twitter RSS Feed Email Alerts & Newsletters