Groveland Capital gives Biglari Holdings a taste of its own Steak
|March 28th, 2015||
|Groveland Capital, a Minnesota-based activist hedge fund, is attempting to shake things up for Sardar Biglari, CEO of Biglari Holdings which owns Steak ‘n Shake among other investments and properties. According to the N.Y. Post, Groveland Capital is investing heavily in a proxy battle to unseat the six-member board of Biglari Holdings over its handling of Steak ‘n Shake’s turnaround since its acquisition by Biglari Holdings in 2008.|
Citing questionable corporate governance on the part of Sardar Biglari, including outsized compensation, deceptive accounting practices and misuse of company assets to enhance his ownership position, Groveland is challenging Sardar Biglari’s claim of Steak ‘n Shake’s resurgence from near bankruptcy. The fate of Biglari Holdings appears to lie in the hands of its second biggest shareholder, GAMCO, which may insist that Sardar Biglari abstain his shares from voting in order to secure its vote for the incumbent board members.