Darden: Starboard's Assertions Based On Incorrect And Unrealistic Analysis

(RTTNews) - Darden Restaurants Inc. (DRI) stated that Starboard Value LP and its affiliates has provided notice of its intent to nominate 12 candidates to stand for election to Darden's Board. By attempting to replace all 12 members of the Board with its own preferred nominees, Starboard is seeking effective control of the company, Darden said.

In a statement released, Darden said, Starboard's assertions continue to be based on incorrect and unrealistic analysis, which results in misleading conclusions regarding the value associated with the sale of the Red Lobster business.

"Over the past months, we have had extensive conversations with our shareholders about Darden and the company's strategic direction. The recently signed agreement to sell the Red Lobster business and the actions underway to reinvigorate restaurant performance, reduce costs and ensure a sound financial foundation to support Darden's dividend reflect the input we have received from shareholders. These initiatives also reflect a review of operational, strategic and financial alternatives available. In conducting this review, the Board has been open-minded to the paths available for value creation, including those suggested by shareholders," Darden said.

Darden stated that its Board and the Board's Nominating and Corporate Governance Committee will consider the Starboard nominations in due course.