Jan 21 Activist investor Starboard Value has
asked Darden Restaurants Inc to delay the planned
spinoff of its Red Lobster chain to look at other options to
lift the value of shares, including improving operations and
cutting costs companywide.
Starboard made the request in a letter to the chief
executive officer and the board of directors sent on Tuesday.
Starboard, which said it owns 5.5 percent of Darden's
shares, also wants Darden to conduct an evaluation of all its
options related to its real state holdings.
Last month, Darden said it would spin off or sell the
floundering Red Lobster chain, bowing to pressure from hedge
fund Barington Capital Group. Barington last week also voiced
disappointment with Darden's plan for Red Lobster.