Activist target, Friendly Ice Cream Corporation (NYSEARCA:FRN) was higher yesterday after the company said it retained Goldman Sachs to assist the Board of Directors in exploring strategic alternatives to enhance shareholder value, including a possible sale of the company.
Friendly is the activist target of Sardar Biglari who is Chairman of the Board of Western Sizzlin (WSZL.OB) and runs hedge fund The Lion Fund, LP.
Biglari, and those who have followed him into the stock, have made a killing. The stock was at $7.75 per share on 08/07/06, the day Biglari filled his original 13D. Today the stock is at $13.32 - a gain of 72%. (Mr. Buffett, we have a new candidate to take over for you).
One would have to assume Mr. Biglari would participate in a auction of the company. We will wait for an update.
FRN 1-yr chart