At least six rival real-estate investment firms have expressed
interest in buying the property holdings of restaurant and
packaged-food giant Bob Evans Farms Inc., according to people
familiar with the matter.
The potential bidders include Spirit Realty Capital Inc.,
American Realty Capital Properties Inc., Store Capital and National
Retail Properties Inc., these people said.
The overtures come as Bob Evans faces pressure from activist
investor Thomas Sandell to sell the buildings that house its
restaurants, lease them back and use the proceeds to buy back what
Mr. Sandell argues are undervalued shares.
Mr. Sandell, a Swedish-born billionaire who founded Sandell
Asset Management Corp. in 1998, last year began accumulating what
has grown into a 9.2% stake in the company. In August, Bob Evans
announced that four nominees put forth by Sandell Asset Management
will join its 12-member board.
On Wednesday, Sandell Asset Management said in a securities
filing that it had been contacted by several investment firms
interested in buying Bob Evans' real estate should the firm's
activist strategy prevail.
A Bob Evans spokesman said that the company is "focused on
shareholder value."
Mr. Sandell believes Bob Evans' real estate holdings, including
roughly 480 restaurant locations across the country, a 40-acre
headquarters property and a 937 Acre farm, both located in Ohio,
are worth more than $900 million, or 80% of the company's market
value.
Write to Robbie Whelan at robbie.whelan@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires