WHEN: TODAY, TUESDAY, April 22, 2014
WHERE: CNBC'S "SQUAWK ON THE STREET"
Following is the unofficial transcript of breaking news from CNBC's David Faber. All references must be sourced to CNBC.
DAVID FABER: WELCOME BACK TO SQUAWK ON THE STREET I AM DAVID FABER AT THE ACTIVE PASSIVE SUMMIT WITH BREAKING NEWS INVOLVING DARDEN I CAN TELL YOU NOW THAT SOURCES FAMILIAR WITH THE SITUATION TELL ME THAT STARBOARD THE ACTIVIST FUND THAT OWNS MORE THAN 5% OF DARDEN SHARES HAS SUCCEEDED IN A CONSENT SOLICITATION TO CALL FOR A SPECIAL MEETING OF DARDEN'S BOARD OF DIRECTORS. SOURCES TELL ME THAT STARBOARD HAS RECEIVED CONSENTS FROM 54% OF THE OUTSTANDING SHARES OF DARDEN WHICH WOULD ALLOW THE COMPANY TO DELIVER THOSE CONSENTS AND ASK FOR A SPECIAL MEETING. DARDEN WOULD BE OBLIGATED TO HOLD THAT SPECIAL MEETING WITHIN 60 DAYS OF RECEIVING THE CONSENT. AGAIN I AM TOLD 54% OF SHAREHOLDERS HAVE VOTED IN FAVOR OR GIVEN THEIR CONSENT FOR THAT SPECIAL MEETING AT WHICH THEN THEY WOULD CONSIDER A NON-BINDING SHAREHOLDER PROPOSAL TO BASICALLY NOT SPLIT THE COMPANY UP OR TO ACTUALLY HOLD A VOTE AT SOME POINT ON WHETHER OR NOT IT COULD BE ALLOWED. MUCH MORE IMPORTANT WHAT THIS REALLY IS IS A DEFINITIVE READ OF THE SHAREHOLDER BASE OF DARDEN SAYING WE ARE NOT INTERESTED AT THIS POINT IN THIS COMPANY BEING SPLIT UP. OF COURSE THAT SPLIT UP IS MOVING AHEAD AT THIS POINT WITH THE DIVISION OF THE RED LOBSTER DIVISION BEING SEPARATED FROM THE REMAINDER OF THE COMPANY. WE'LL KEEP AN EYE ON DARDEN SHARES BUT AGAIN CAN TELL YOU IT HAS SUCCEEDED IN A RARITY ALTHOUGH SOMETHING WE ARE SEEING A BIT MORE OF A CONSENT SOLICITATION THIS TIME NOT TO THROW OUT A BOARD OF DIRECTORS SIMPLY TO HOLD A SPECIAL MEETING. BACK TO YOU SARA.
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