Scout Capital Goes Activist on DineEquity, Raises Stake ~ market folly

Tuesday, May 14, 2013

Scout Capital Goes Activist on DineEquity, Raises Stake

Adam Weiss and James Crichton's hedge fund Scout Capital filed a 13D on shares of DineEquity (DIN) yesterday after market close.  Per the filing, Scout has revealed a 6.6% ownership stake in with 1,280,321 shares.

This means they've boosted their position size by 134,631 shares since the end of 2012, or around a 12% increase.  They filed the 13D due to activity on May 3rd. 

Activist Stake in DineEquity

In the fine print of the filing, we see that Scout's purpose of transaction is listed as follows:

"The Reporting Persons have engaged and expect to continue to engage in discussions with senior management of the Issuer with respect to the Issuer’s optimal capital structure, debt refinancing, timing and magnitude of share repurchases, management compensation metrics and merger and acquisition strategies, among other matters."

Late last year, we flagged how Mick McGuire's activist fund Marcato Capital Management also filed a 13D on DineEquity.

Per Google Finance, DineEquity "owns franchise and operate two restaurant concepts: Applebee's Neighborhood Grill & Bar, (Applebee's), in the bar and grill segment of the casual dining category of the restaurant industry, and International House of Pancakes (IHOP), in the family dining category of the restaurant industry."

For additional moves from this hedge fund, head to recent portfolio activity from Scout Capital.

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