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June 03--Hedge fund Starboard Value has resigned itself to Darden Restaurants'Red Lobster sale, saying Monday it has withdrawn its request for a special shareholder meeting to discuss it.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

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

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Source: Orlando Sentinel (FL)


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