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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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  "notes": "Uses direct quotes from official documents to frame management as either incompetent or dishonest.",
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      "text": "“Accordingly, Darden can contribute its real estate assets to a new subsidiary and designate that subsidiary as an Unrestricted Subsidiary. That Unrestricted Subsidiary could then sell and lease back its real estate portfolio, without having to repay debt.” - Covenant Review, February 28, 2014",
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      "text": "“These covenants apply to Darden and to certain of its subsidiaries but do not apply to Darden’s subsidiaries that are not corporations.” - Final Prospectus Supplement to Darden Restaurants, Inc. 3.350% Senior Notes due 2022, October 1, 2012",
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      "text": "Management has either forgotten about its prior written statements or is misleading shareholders.",
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      "text": "Management is on record as stating that its bond covenants do not apply to subsidiaries that are not structured as corporations – such as trusts – and therefore according to Darden itself any real estate that is in Darden’s existing internal REIT or a new REIT subsidiary created by Darden “would not be subject to any of the restrictive covenants.”",
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      "text": "We believe that a substantial portion of Darden’s real estate is already in subsidiaries that are structured as trusts. Further, the definition of an Unrestricted Subsidiary includes any subsidiary “the principal business of which consists of the owning, leasing, dealing in or development of real property.”",
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      "text": "\"These covenants apply to Darden and to certain of its subsidiaries but do not apply to Darden's subsidiaries that are not corporations.\" — Final Prospectus Supplement to Darden Restaurants, Inc. 3.350% Senior Notes due 2022, October 1, 2012; \"Accordingly, Darden can contribute its real estate assets to a new subsidiary and designate that subsidiary as an Unrestricted Subsidiary. That Unrestricted Subsidiary could then sell and lease back its real estate portfolio, without having to repay debt.\" — Covenant Review, February 28, 2014",
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      "text": "Management has either forgotten about its prior written statements or is misleading shareholders.",
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      "text": "Management has misled shareholders regarding potential debt breakage costs (cont’d)",
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