Latham-Led Darden Answers Activist With Red Lobster Spinoff

Law360, New York (December 19, 2013, 11:10 AM EST) -- Florida-based Darden Restaurants Inc. on Thursday bowed to pressure from a vocal activist investor, unveiling plans to spin off its well-known Red Lobster unit ahead of a possible sale, skip new acquisitions and ramp up cost-cutting efforts.

The Red Lobster shake-up falls in step with calls from New York-based Barington Capital Group LP, which for months has pressed Darden to consider splitting its older brands, including Olive Garden, from a half-dozen other restaurants it has picked up in recent years. After the tax-free spinoff, Darden said...
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