Sandell Asset Management Picks Up Its Stake in Bob Evans Farms Inc (BOBE)

Tom Sandell's Sandell Asset Management is still bullish on Bob Evans Farms Inc (NASDAQ:BOBE). A newly amended filing with the SEC revealed the fund increasing its position in the company to a total of over 1.7 million shares, from 1.4 million held previously. Sandell's holding amasses 6.5% of the company's common stock, up from 5.1% disclosed in an earlier filing. The value of the position is worth over $89 million, at the current stock price of the company.

Thomas Sandell


However, Sandell is not holding the entire position. According to the filing, the fund owns 386,500 shares in the form of options to purchase common stock. The fund has already disclosed upping its position in the company to 5.1% in November, when Sandell also sent a letter to Bob Evans Farms Inc (NASDAQ:BOBE)'s board.

The letter presented Sandell's activist view in regard to the company's management. The fund expressed its concern in the lack of action from the company's management and the board of directors to increase the shareholder value at Bob Evans Farms Inc (NASDAQ:BOBE), and expressed its intentions to take some measures, including a consent request, which will allow shareholders to seek for some changes at the company.

The company reported their results for the second quarter of its fiscal 2014, following which the stock of the company dropped by over 6%. Bob Evans Farms Inc (NASDAQ:BOBE) declared an EPS of $0.35, missing the estimates of $0.55, and showing a decline from $0.53 posted last year. Bob Evans explained the decline in EPS by "significant cost pressures," according to the earnings call transcript.

Aside from Sandell, Chuck Royce's Royce & Associates also disclosed holding shares of Bob Evans Farms Inc (NASDAQ:BOBE) in its equity portfolio. Royce reported a $25.4 million position, which amasses around 442,700 shares of the company. It is followed by Cardinal Capital, run by Amy Minella, which holds 378,200 shares, worth $21.7 million, according to its latest 13F.

Disclosure: none

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