Cracker Barrel Unveils Poison Pill With 10% Trigger |
| Wall Street Journal - Sep 23, 2011 |
Cracker Barrel Old Country Store Inc.'s (CBRL) board of directors approved a shareholder rights plan that implements a so-called "poison pill" in response to increasingly vocal complaints from its largest shareholder.
The poison pill, which carries a 10% trigger, comes as Sardar Biglari, chief executive of Biglari Holdings Inc. (BH), received clearance under the Hart-Scott-Rodino Act to acquire up to a 49.99% stake in Cracker Barrel. The act is part of U.S. anti-trust laws that requires prospective acquirers to notify regulators when planning certain large deals in order to give the regulators a chance to investigate any significant anticompetitive consequences.
Cracker Barrel, which sells country-style foods and rustic bric-a-brac, says that Biglari is a direct competitor because it owns Western Sizzlin and Steak 'n Shake restaurants. Biglari's clearance by regulators indicates they didn't find any red flags with Biglari's intended stock purchase, a technically minority stake, but it doesn't address his separate pursuit of a seat on Cracker Barrel's board of directors.
Biglari's firm, which owns a 9.3% stake in Cracker Barrel, has called for greater transparency in the company's financial reports, requesting that it break out restaurant and retail sales separately. Cracker Barrel subsequently provided more insight in its latest earnings release.
Read Full Article from Wall Street Journal
- Posted: 2011-09-23 13:23:50
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