Tom Sandell‘s Sandell Asset Management went activist on Bob Evans Farms Inc (NASDAQ:BOBE) again. The fund issued a press release, disclosing an open letter sent to the company’s board. According to the letter, Sandell is disappointed by the company’s management and its ability to realize the shareholders value. The fund also stated that it plans to launch a consent solicitation which will provide shareholders with the possibility to seek for changes at Bob Evans.
“We have made repeated attempts to engage in a dialogue with the Company over a period of nearly five months for the sole purpose of discussing ideas which could deliver significant additional value to you, the true owners of Bob Evans. Unfortunately, management and the Board of Directors, aided by its financial advisors Lazard, have decided to take no action with respect to our ideas aimed at unlocking what we believe may exceed $80 per share of value associated with the Company’s unique assets, apparently choosing instead to pursue “business as usual,” despite the Company’s abysmal earnings performance and concomitant stock price decline, ” Sandell said in the letter.
On Tuesday, Bob Evans Farms Inc (NASDAQ:BOBE) responded to the letter, stating that the board came to the conclusion that the measures proposed by Sandell are not in the best interest of the company and its shareholders.
Earlier, Sandell, in another letter, proposed that Bob Evans Farms Inc (NASDAQ:BOBE) should spin off its BEF Foods division and sale-leaseback the real estate held by Bob Evans Restaurants. The fund also suggested that the company should buy back some of its shares through a self-tender.
The full reply on these proposals provided by Bob Evans Farms Inc (NASDAQ:BOBE)’s management can be accessed through the link below:
Last week, Sandell Asset Management raised its stake in Bob Evans Farms Inc (NASDAQ:BOBE) to over 1.7 million shares, from 1.4 million held earlier. The fund currently holds 6.5% of the company’s common stock, increasing it from 5.1% reported earlier.