US-based Bob Evans Farms has scrapped plans to sell or spinoff its sausage and refrigerated-food business.
This comes after the company witnessed 18% decline in shares to $48.80.
Sandell Asset Management, which owns over 7% of Bob Evans, has been asking for a spinoff of Bob Evans' food unit BEF Foods.
It believes that the sale of the prepared-foods unit alongside sales of restaurant real estate could fetch around $1bn.
However, Bob Evans said that it will consider options for its real estate or other changes to its capital structure, as it believes that the sale or spinoff of its food unit will not increase shareholder value.
J.P. Morgan has been appointed by the company to advise on strategic options for its real estate.
Headquartered in Ohio, Bob Evans Farms operates through Bob Evans Restaurants and BEF Foods segments.
The company produces and distributes fresh, smoked, and fully cooked pork sausage, ham, and hickory-smoked bacon products; ready-to-eat products, such as sandwiches, soups, and gravies; home-style refrigerated side dishes; and frozen food items primarily under the Bob Evans, Owens, and Country Creek brands.
Image: Bob Evans Farms produces and distributes fresh, smoked, and fully cooked pork sausage, ham, and hickory-smoked bacon products. Photo: courtesy of Bob Evans Farms.
