Sandell Asset Management Files Complaint Against Bob Evans Farms Inc (BOBE)

Tom Sandell‘s Sandell Asset Management, in a new filing with the Securities and Exchange Commission, disclosed that it filed a complaint against Bob Evans Farms Inc (NASDAQ:BOBE). Sandell holds currently around 1.7 million shares of the company, which represent 6.5% of the outstading stock. The complaint filed with the Delaware Court of Chancery asks the court for a judgement that Bob Evans’ board intention to deprive the company’s shareholders of their rights to amend the company’s bylaws was invalid.

Thomas Sandell

“We find it outrageous that the Board unilaterally adopted, without shareholder approval, a requirement that an 80% supermajority shareholder vote be obtained in order for shareholders to amend the Bylaws. This amendment was made less than three months after shareholders had overwhelmingly voted to reduce such a supermajority requirement to a majority threshold, and in any event was made in contravention of the terms of the then existing, Board-proposed bylaw. We believe that the Board’s unilateral action to strip shareholders of their rights demonstrates this Board’s complete contempt for its shareholders” Thomas Sandell said in a statement attached to the filing.

Earlier Sandell tried to engage in discussions with Bob Evans Farms Inc (NASDAQ:BOBE) regarding possibilities to increase shareholders value of the company. The company, however, did not take any action with respect to the proposed measures, which, according to the shareholder, might raise the stock price of the company to over $80 per share. Bob Evans Farms Inc (NASDAQ:BOBE) later issued a reply to the letter, stating that the board considers that the measures proposed by Sandell are not in the best interest of the company and its shareholders.

In December, Sandell, in an open letter expressed its disappointed in the management of Bob Evans Farms Inc (NASDAQ:BOBE). The fund stated that it intents to launch a consent solicitation, which will allow the shareholders to seek for changes at the company.

“The more we investigate this Board, the more concerned we are at the numerous connections both among Board members themselves, as well as between various Board members and Steven Davis, that in our view reek of cronyism. We have become convinced that dramatic governance change is necessary to reign in what we believe are the irresponsible spending habits and poor decisions made by Mr. Davis, the Company’s Chairman and CEO. It is unfortunate that we are forced to go to court to preserve and enforce our rights, but we believe it is important that shareholders have as expansive an ability as possible to pursue meaningful change at Bob Evans. Fortunately, shareholders do not have to wait until the Company’s Annual Meeting to seek change, as they can take action by written consent,” Sandell also said.

Disclosure: none

Recommended Reading:

Hedge Fund News: Paul Singer, James Dondero & Ken Griffin

Harvest Capital Strategies Increases Stake in Green Dot Corporation (GDOT) by 63%

Ricky Sandler, Eminence Capital Support The Men’s Wearhouse, Inc. (MW)’s Plans To Acquire Jos. A. Bank Clothiers Inc (JOSB)

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

Best States To Practice Medicine

The 10 Best States to Have a Business

The 12 Most Expensive Apple (AAPL) Apps in the Market

The 10 Richest Billionaires in the World

10 Biggest Kickstarter Failures

The 10 Best Places to Work At

The Top 10 of Google Inc (GOOGL)’s Most Expensive Acquisitions

13 Best Cities to Visit in South America

10 Most Expensive Works of Art of All Time

The 10 Richest Banks in the World

The 10 Best-Paying Jobs in America (2014)

7 Most Expensive Foods in the World

The World’s Top 10 Earning Authors

Five Wicked and Very Expensive Items (and Other “Stuff”) Sold on eBay

10 Biggest Celebrity Bankruptcies

The Top 10 Highest Paid CEOs in 2014

The 10 Most Expensive Real Estate Cities in America

10 Most Expensive States To Live In America

The 10 Best Airlines in the World

The 10 Best-Selling Cars in 2014

The 10 Best Industries to Invest In

The 10 Most Expensive States to Own a Car In

Top 10 Business Schools in US: 2014 Rankings

Top 20 Female Billionaires in 2014

6 Movies That You Should Watch to Better Understand The Cold War

Top 15 Best Paying Jobs for Women in 2014

Top 6 Things Rich People Do Differently Every Day

5 Retirement Mistakes To Avoid (and Einstein’s Famous Quote)

11 Smartest People in the World

6 Films About the Financial World You Need To Watch (While “The Wolf” is Not Around)

Warren Buffett and Billionaires Are Crazy About These 7 Stocks

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top 6 Tax Scams and How to Protect Yourself

Top Businesses to Invest In

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!