Red Lobster Deal Sparks Darden Board Proxy Battle

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May 22 (Bloomberg) -- Bloomberg’s Cristina Alesci reports on the proxy battle started by Darden Restaurant investor Starboard over the company’s deal to sell the Red Lobster chain to a private equity firm for $2.1 billion. Starboard is seeking the removal of the entire Darden board and to block the sale of the chain to Golden Gate Capital. She speaks on Bloomberg Television’s “Market Makers.” (Source: Bloomberg)

Destructive transaction without shareholder approval and that is the accurate.

Cristina alesci has been all over this story.

What evidence is being presented that this is shareholder value?

Qwest management gave it away for a puny evaluation.

The way they get there is they say, ok you sold his chain -- sold his chain for $2.1 million or that private equity chain turned around and sold the real estate for one point billion dollars.

That means you sold this business, the operating the business, for $600 million and he did it so tax inefficiently that you actually build it for $100 million over the value of the real estate.

It is pretty damning the way they get to the math.

It is hard to argue against a map.

Then there is the atmospheric around the deal.

Starport and other investors that's a word it feel like management investors have legally ignore shareholder demand and shareholder input, which by the way, flies in the face of what we have seen over the course of the last year and a half with activist shareholders, where management is the morris and you and taking meetings and listening to these guys are sometimes, they have pretty mark ideas.

Just pretty smart ideas.

-- they have pretty smart ideas.

We have to see how they react this morning.

We will have to do pretty aggressive pr because a lot of restaurant is has sided with the activist.

The real action is a month they really make a change and block the deal from happening?

The answer is no, but they could go ahead and make management and the board loses job.

What is interesting is the question is, will the shareholders basically that the board of erectors that they propose today.

If it is the last time around, we see the investors side.

That's very interesting and not the last leg of the story.

Best thank you for your reporting.

In washington, roughly a year after it snowden started revealing he is about american surmounts passes, the house fix the first steps today to rein in him of them.

Those changes do not go far enough for some of america is the tech companies.

Peter cook is on the health more.

The bill has the backing of the white house.

Class it does.

Strong support of the white house.

The administration believes the deal encompasses many of the changes the president himself has told out over the last year or so is the story first hit the headlines.

Supporters of legislation, the bipartisan, that sounds national sick and rising needs, will walk you through what they say in the

This text has been automatically generated. It may not be 100% accurate.


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