Starboard hammers Darden over Red Lobster deal

|About: Darden Restaurants, Inc. (DRI)|By:, SA News Editor

Starboard Value opposes the sale by Darden Restaurants (DRI -4%) of Red Lobster in no uncertain terms.

The hedge fund says by its calculation a deal price of $2.1B destroys close to $800M of Darden shareholder value.

"It appears that Darden has instead sold Red Lobster in a rushed transaction at a severe discount," wrote Starboard CEO Jeffrey Smith.

Smith beat the over-under on a Starboard bashing of Darden by a few hours.