Deals and IPOs

Darden files to spinoff Red Lobster: Report

Robert Caplin | Bloomberg | Getty Images

Darden Restaurants has filed for a spinoff of Red Lobster, The Orlando Sentinel reports.

If the spinoff goes through, Darden shareholders would get a share of the new Red Lobster company for each Darden share. Former Red Lobster president Kim Lopdrup would be the chain's CEO.

Orlando-based Darden is still exploring the sale of Red Lobster, according to the newspaper.

(Read more: Should Red Lobster be set free? Let shareholders decide)

Activist hedge fund firm Starboard Value has long urged Darden to delay spinning off Red Lobster. Recently, the restaurant operator canceled a meeting with investors and analysts that was scheduled for later this month.

(Read more: Investor to Darden:Keep Red Lobster!)

Darden, the nation's largest full-service restaurant company, also owns Olive Garden and LongHorn Steakhouse among others. Shares are down about 7 percent this year.

Read the article here.