Shareholder Activist Update: Spotlight Advisors and Clinton Group

July 3rd, 2010
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Contributed by: Hedge Fund Solutions LLC
Activist investors Spotlight Advisors and Clinton Group recently spoke with two directors of Red Robin Gourmet Burgers (NYSE: RRGB) to emphasize several of the shareholders’ concerns. The topics included the substantial upside in RRGB’s stock, the role and responsibility of the board if the company receives a buyout offer, and the importance of concluding various elements of the settlement agreement to which all parties agreed in March of this year.

According to Hedge Fund Solutions’ Catalyst Report, the March 4 settlement agreement stipulates that RRGB will add three new directors with significant industry experience and commit to at least one more board member with a similar background, that two directors will retire, and that the board will adopt a majority voting standard to elect directors. The agreement further requires that a board committee begin a search for a new CEO and that RRGB will eliminate re-pricing and cash tenders without shareholder approval by changing its stock plan.

Analysis from Hedge Fund Solutions concludes that two tenets of the settlement agreement still remain unfulfilled: the appointment of a new CEO and of an additional independent director.
For Detailed Investor Profiles on these Investors, click below:
Clinton Group
Spotlight Capital Management
Related People: George Hall; Gregory Taxin; John L. Hall
Related Entities: CGI Whitehall Universal; Clinton Equity Strategies Master Fund; Clinton Magnolia Master Fund; Clinton Multistrategy Master Fund; Clinton Quantitative Equity Strategies; Clinton Special Opportunities; Spotlight Advisors, LLC; Spotlight Capital Management LLC; Spotlight Capital Partners, LP
Related Article Tags: Shareholder Activists, Corporate Raiders and Proxy Battles; Hedge Fund Resources and Featured Partner News

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