The A1 and A2 versions of “shareholder activists at Friendly Ice Cream (A)” split the original one case into two parts. The A1 case ends as activists Sardar Biglari and Phil Cooley prepare, with CEO Don Smith at Friendly’s headquarters in September 2006 to fulfill. The case A2 picks up the story shortly after the meeting and the details of Biglari and friendly actions from this point on. The A1 and A2 cases are for instructors who wish to provide more flexibility in the curriculum. These cases do not … Read more »

The A1 and A2 versions of “shareholder activists at Friendly Ice Cream (A)” split the original one case into two parts. The A1 case ends as activists Sardar Biglari and Phil Cooley prepare, with CEO Don Smith at Friendly’s headquarters in September 2006 to fulfill. The case A2 picks up the story shortly after the meeting and the details of Biglari and friendly actions from this point on. The A1 and A2 cases are for instructors who wish to provide more flexibility in the curriculum. Not omit or abbreviate these cases, no information contained in the original one case. Two activist investors, one of the founders and a hedge fund manager, try supervisory board at a chain restaurant company improve. Friendly Ice Cream Prestley Blake founded in 1935 with his brother and the two created a chain of full-service restaurants. In 1979 they sold the business and retired. In 2000, Blake was concerned that friendly CEO who has owned about 10% of the children and also had a greater proportion of another restaurant company shifting expenses between the companies harmful to shareholders in a friendly way, but personally advantageous for the CEO . Also believed that Blake Friendly Board of Directors was not fulfilling their fiduciary obligations to the shareholders by properly supervise the activities of the CEO and the directors had conflicts of interest because they were not involved with the CEO-Friendly business activities. In 2003, Blake filed a lawsuit against the CEO and the company. In 2006, Sardar Biglari, a hedge fund manager who had invested in friendly entered to join him in negotiations with the kind of the Board of Directors to improve the management of business. When the negotiations failed, Biglari launched a proxy fight against friendly in 2007. While these two activist investors shared similar goals, they worked autonomously and chose different strategies.
«Hide

from
Fabrizio Ferri,
V.G. Narayanan,
James Weber
Source: Harvard Business School
5 pages.
Release Date: 11 September 2008. Prod #: 109014-PDF-ENG
Shareholder Activists at Friendly Ice Cream (A2) HBR case solution