Del Frisco’s stock rockets toward biggest-ever gain after investor urges exploring a sale
Shares of Del Frisco’s Restaurant Group Inc. DFRG, +12.32% shot up 12.5% in morning trade Thursday, putting them on track for the biggest one-day gain since they went public in July 2012, after an activist investor urged the restaurant chain to explore a sale. Engaged Capital, a hedge fund which owns 9.99% of Del Frisco’s outstanding shares, it believes there are "numerous" parties interested in buying the company at valuations that would deliver a "significant premium" to the current share price. Engage urged the company’s board to "correct recent strategic missteps" and create shareholder value by proactively appointing shareholder representatives to the board, hiring financial advisors and forming a committee of independent board members to evaluate strategic alternatives. Despite the stock’s rally Thursday, it was still down 50% year to date, while the S&P 500 SPX, -1.41% has slipped 1.5%.
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