Starboard Urges Darden Restaurants To Delay Red Lobster Separation - Quick Facts

(RTTNews) - Starboard Value LP expressed its serious concerns with a proposed separation of Red Lobster,and urged Darden Restaurants Inc.'s (DRI) board to delay the Red Lobster separation and immediately conduct a comprehensive evaluation of all alternatives to maximize shareholder value.

In a letter to the Company's Chairman and CEO, Clarence Otis, and the Company's Board of Directors, Starboard said that it does not believe the currently proposed plan to spin-off or sell Red Lobster, by itself, is in the best interest of shareholders. It believes the Company should more fully evaluate all available operational, financial, and strategic alternatives for Darden in order to create and execute on a comprehensive plan to address all aspects of the business and to ensure the best possible outcome for all shareholders. This evaluation should include consultation with the Company's financial advisors and discussions with shareholders such as Starboard.

Starboard Value LP is one of the largest shareholders of Darden Restaurants, with ownership of approximately 5.5% of the outstanding common stock of the Company.

Starboard noted that it believes Red Lobster separation will impair the company's ability to realize full value for the company's substantial real estate holdings and could destroy substantial shareholder value.

In December 2013, Darden Restaurants had announced that it was looking to sell or spin-off its struggling Red Lobster chain.