Tom Sandell’s Epic Thesis Calling For a Bob Evans Sale or Spinoff

Bob Evans sale or spinoff: Earlier this week, we discussed the potential a Bob Evans spinoff, which is one of the value-creation moves suggested by Tom Sandell and Sandell Asset Management. In a letter addressed to Bob Evans Farms (NASDAQ:BOBE), Sandell states that the company “suffers from a conglomerate discount,” and the market value of its family-dining business is being weighed down by the BEF Foods packaging segment.

Thus, it’s this part of the business that Sandell recommends Bob Evans Farms to either spin off or sell outright.

Dividend investors are likely hoping for a sale, as fresh cash can lead to a dividend hike, but a spinoff would be an attractive scenario in its own right. We wrote about the latter on Seeking Alpha, so check it out there for the full details.

One thing we haven’t shared with you is Sandell’s full presentation. It’s focused on “enhancing shareholder value,” and is worth a quick read if you have a few minutes. The slideshow discussing a Bob Evans sale or spinoff is on the following pages. Enjoy.