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  "documentTitle": "Darden Restaurants, Inc. (DRI)",
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  "authorName": "Jeffrey C. Smith",
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  "presentationDate": "2014-09-11 00:00:00",
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      "text": "A real estate separation and an SRG spinoff would create substantial shareholder value while enabling Darden to maintain its investment grade rating and dividend",
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      "text": "While we believe that the substantial EBITDA improvement opportunity we have outlined in Section V will significantly enhance both Darden's credit rating and its dividend coverage, and that many of the cost savings can be achieved in the near term, we have highlighted structures that will enable Darden to maintain its investment grade rating and dividend even in the absence of any operational improvements. If Darden achieves even a small portion of our operational improvements, which we consider low-hanging fruit, Darden's credit quality and dividend coverage will improve even more dramatically, and we may be able to complete the real estate separation and SRG spinoff on an accelerated timeline.",
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      "text": "We believe the Red Lobster Sale, combined with management and the Board's poor capital allocation, excessive corporate spending, and lack of focus on restaurant operations, has threatened the sustainability of Darden's investment grade rating and $2.20 dividend – a real estate separation is the first step in securing Darden's investment grade rating and dividend.",
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      "text": "Structuring scenarios included both a real estate separation and a spinoff of SRG. We anticipate that a real estate separation would occur within approximately 4-8 months following the Annual Meeting, while an SRG spinoff would be completed approximately 12-18 months after the Annual Meeting. We believe both transactions can be accomplished in a tax and debt-breakage efficient manner.",
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      "text": "In conjunction with a leading investment banking advisor specializing in transaction structuring, Starboard evaluated a number of structures with the goal of maximizing shareholder value while maintaining and strengthening Darden's investment grade credit rating and dividend.",
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