Global activist hedge fund Ramius Capital Group LLC together with affiliates on Wednesday upped their activist campaign at Luby’s Inc. by launching a proxy contest to nominate four director candidates to the Texas-based cafeteria-style restaurant operator’s board.
“Ramius believes that its nominees can prove valuable in helping management evaluate and execute on its new growth strategy, explore various strategic and financing alternatives to enhance shareholder value, and ensure that the company is being run solely for the benefit of all Luby’s shareholders,” Ramius wrote in a regulatory filing on Wednesday. “While we are excited about the potential growth prospects for the business, we believe the board can be strengthened to enable a higher probability of the most successful outcome.“
The Houston-based company with a $282 million stock market capitalization operates 130 cafeteria-style restaurants in Texas. According to the filing, Ramius owns a 7.1% Luby’s stake.
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