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  "documentTitle": "Darden Restaurants, Inc. (DRI)",
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  "authorName": "Starboard Value",
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  "presentationDate": "2014-03-31 00:00:00",
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      "text": "We fear management's current plan to spinoff Red Lobster is reactionary and lacking integrity.",
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      "text": "Despite Opposition, Management is Moving Forward in Divesting Red Lobster: Overall, we believe the Street is disappointed by the divestiture of Red Lobster on its own. We believe it would be more beneficial to shareholders if the company were to be split into two separate entities (mature brands and growth concepts). - Sterne Agee, March 21, 2014",
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      "text": "...But we continue to believe [management's] plan doesn't address RL problems for investors. As we highlighted in our initiation, a RL spin doesn't address the core issue: combined profits and cash flows are deteriorating, and shareholders retain full exposure. It is still unclear how a spin actually improves core guest targeting capabilities/chances for a sales recovery or why multiple expansion would occur. We believe the most favorable outcome for investors under the current plan is a sale of RL, but short of that we see risk to the downside if investors inherit RL shares. - UBS, March 3, 2014",
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      "text": "Darden also issued its most detailed defense of its planned spin-off (or sale) of Red Lobster. However, it remains unclear to us why the combined valuation of the separate companies would exceed current DRI valuation. In addition, plans to ascribe part of the $2.20 annualized dividend to the 'new' Red Lobster, which is to be highly leveraged, increases dividend risk. DRI's dividend already looks unsustainably high. - BofA Merrill Lynch, March 3, 2014",
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      "text": "We believe Red Lobster has a valuable asset base that makes Darden's overall real estate portfolio materially more attractive than it would be without it. We fear management's current plan to spinoff Red Lobster is reactionary and lacking integrity. They haven't given a plan to stabilize and turnaround Red Lobster, but merely an excuse to cast off the struggling chain. - Hedgeye, March 12, 2014",
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      "text": "\"Darden also issued its most detailed defense of its planned spin-off (or sale) of Red Lobster. However, it remains unclear to us why the combined valuation of the separate companies would exceed current DRI valuation.\" — BofA Merrill Lynch, March 3, 2014; \"...But we continue to believe [management's] plan doesn't address RL problems for investors... It is still unclear how a spin actually improves core guest targeting capabilities/chances for a sales recovery or why multiple expansion would occur.\" — UBS, March 3, 2014; \"We fear management's current plan to spinoff Red Lobster is reactionary and lacking integrity. They haven't given a plan to stabilize and turnaround Red Lobster, but merely an excuse to cast off the struggling chain.\" — Hedgeye, March 12, 2014; \"Despite Opposition, Management is Moving Forward in Divesting Red Lobster: Overall, we believe the Street is disappointed by the divestiture of Red Lobster on its own.\" — Sterne Agee, March 21, 2014",
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      "text": "Source: Wall Street equity research.",
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      "text": "Wall street research analysts have voiced their concern and skepticism regarding a Red Lobster separation",
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