Starboard Value LP, managed by Jeffrey Smith, recently filed a Form 13 with the U.S. Securities Exchange Commission. In its filing, the fund reported its equity portfolio, worth $2.6 billion, for the second quarter of 2014. In this article, we will discuss top three holdings of Starboard for the second quarter.
First one on this list is MeadWestvaco Corp. (NYSE:MWV), a new position where Starboard disclosed holding 9.35 million shares, with a reported value of $413.8 million. MeadWestvaco Corp. (NYSE:MWV) is a global packaging company, with a market cap of $7.2 billion. The company posted second-quarter 2014 income from continuing operations attributable to the company of $91 million, or $0.53 per share, compared to $51 million, or $0.28 per share, in the period a year ago. It reported sales from continuing operations of $1.47 billion, compared to $1.39 billion, in the same quarter of last year, according to a press release.
Other largest shareholders of MeadWestvaco Corp. (NYSE:MWV) include Carlson Capital, led by Clint Carlson, which owns 1.56 million, and Jean-Marie Eveillard’s First Eagle Investment Management, which holds 1.02 million shares of the company.
Darden Restaurants Inc. (NYSE:DRI) is represented as the second most valuable holding, in which Starboard boosted its stake to 8.22 million shares from 7.25 million shares reported previously.
Last month, Starboard disclosed that it filed a complaint in the Ninth Judicial Circuit Court of Florida against Darden Restaurants Inc. (NYSE:DRI). The filing showed that the fund filed its complaint against the company, seeking an order from the court to compel the company to provide Starboard with certain books and records for purposes of inspection and copying.
Florida-based Darden Restaurants Inc. (NYSE:DRI) is a full-service restaurant company that owns and operates more than 1,500 restaurants. It has a market cap of $6.2 billion. Last week, the company completed the repurchase of about $900 million of the $1 billion debt retirement leaving approximately $1.6 billion of debt on its balance sheet. The remaining $100 million of debt has been called for redemption and is expected to be retired later in August 2014, according to press release.
Aside from Starboard, Israel Englander’s Millennium Management owns 817,240 shares, and Citadel Investment Group, led by Ken Griffin, holds 331,885 shares of the company.
In Office Depot Inc. (NYSE:ODP), Starboard revealed holding 46.32 million shares, with a reported value of $263.6 million. The stake remained unchanged over the quarter. Office Depot Inc. (NYSE:ODP) is engaged in providing office products, services, and solutions, and has a market cap of $2.8 billion. For the second quarter of 2014, the company reported total sales of $3.8 billion, up from $2.4 billion in the same quarter of 2013.
Other shareholders of the company include Lioneye Capital Management, led by Stephen V. Raneri, holds 8.45 million shares, and Glenhill Advisors, managed by Glenn J. Krevlin, owns 7.61 million shares of the company.
Disclosure: none
