In a 13D filing after the close on Friendly Ice Cream Corp. (NYSEARCA:FRN), 12.7% holder The Lion Fund said, absent action from the company, they intend to nominate Mr. Biglari and Dr. Cooley for election to the company's board of directors at the company's annual meeting to be held in 2007. The firm intends to solicit proxies to be voted in favor of its nominees.
The Lion Fund said it is concerned with the current status of the board of directors as all but one of the issuer's current directors, including the chairman of the board, are defendants in a pending shareholder derivative lawsuit in which one of the founders of the issuer's business and a substantial stockholder, S. Prestley Blake, is the plaintiff.
The firm said because of its large holdings (more than all current directors combined) and because their interest are aligned with other stockholders, Mr. Biglari and Dr. Cooley would be constructive contributors to the board.
Sardar Biglari is the portfolio manager of the Lion Fund and models his investment philosophy after Warren Buffett. Dr. Philip L. Cooley is the Prassel Distinguished Professor of Finance at Trinity University and sits of the Board of Directors of the Lion Fund. The fund's website is http://lionfundmanagement.com.