Darden Pushes Red Lobster Spinoff Despite Activist Criticism

Law360, New York (January 21, 2014, 4:53 PM EST) -- Activist shareholder Starboard Value LP criticized Darden Restaurants Inc. in a letter on Tuesday over Darden's plans to spin off just its Red Lobster chain in an effort to improve performance, a week after another activist also voiced criticism, but Darden said it's going ahead with the plan.

Starboard owns 5.5 percent of Darden, which owns Red Lobster, Olive Garden and LongHorn Steakhouse. According to Starboard, Darden hasn't managed its resources effectively and spinning off Red Lobster, the company's main setback, won't rid Darden of its...
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