Sandell Asset Management Corp. (“Sandell”), the beneficial owner of approximately 1.7 million shares, or 6.5%, of Bob Evans Farms, Inc. (BOBE) (“Bob Evans” or the “Company”), released an open letter to the shareholders of the Company indicating that it intends to commence a consent solicitation at Bob Evans. Sandell is being advised by the proxy solicitation firm MacKenzie Partners, Inc. (“MacKenzie”).
The results will really let the Davis team know if they are in trouble or not. I remember Kroger being in a very similar situation in the mid 80's. Kroger handled it well and the shareholders all made more than 10% annualized return for a number of years from the special one time hefty dividend Kroger issued to shareholders in order to fight off KKR, and their bonds have proven to be a great investment over the years. Will BOBE be able to pull off a KR??? We shall see shortly!