Immediately after closing the sale of Red Lobster to Golden Gate Capital, Darden (DRI) began begging for forgiveness from its spurned activist shareholders. CEO Clarence Otis got sacrificed at the altar resigned and the company announced that it would let Starboard nominate three members to its board who would run unopposed. Starboard was not satisfied with this offer though and… Read More »
With the $2.1b sale of Red Lobster to private equity firm Golden Gate Capital all wrapped up, the battle for Darden (DRI) has officially entered the next phase. For a quick and abridged refresher on the situation, the ailing restaurant company was recently assailed by two activist firms pushing for numerous changes including a spinoff of its slower growing restaurants, Red Lobster… Read More »
What to do when a majority of your shareholders support calling a special meeting before you divest an important asset? Go ahead, ignore them, and do what you want, says Darden(DRI). With the $2.1 billion sale of Red Lobster a fait accompli, despite strong opposition from holders, Starboard Value has stepped on the gas in its attack. While… Read More »
While the Olive Garden famously stuffs its patrons with a never ending pasta bowl, its parent company, Darden Restaurants (DRI), is providing investors some never ending drama. Ever since announcing plans to spin off the declining Red Lobster, Darden has been besieged by not one, but two different activist investors. As we noted earlier, Barrington Capital is pushing… Read More »
We’ve been quite remiss in not discussing Darden’s(DRI) plan to spinoff Red Lobster and the ongoing activist fight over the company’s direction. Both Barrington Capital with 2.8% of the company and Starboard Value, with 5.5%, have been sparring with the firm. Barrington had proposed that the the firm separate its low-growth brands, Red Lobster and Olive Garden, from… Read More »