- Activist investor Starboard Value has reportedly bought a 5.6% holding in Darden Restaurants (DRI) just days after the latter said it intends to spin off its Red Lobster operations following pressure to restructure from another shareholder, Barington Capital Group.
- However, Darden's plan is not enough for Starboard, which wants the restaurant operator to create a real estate investment trust (REIT) for its property holdings, and combine its Red Lobster, Olive Garden and LongHorn Steakhouse chains into one company, and its faster-growing businesses into another.
- Starboard hasn't been in contact with Barington, whose wish list is similar but not identical to Starboard's, although it has spoken with other disgruntled shareholders.
Darden Restaurants to feel more pressure as Starboard buys stake
Dec 23 2013, 02:11 ET