Activist Target Friendly (FRN) Gets Boosts After CEO Leaves

Friendly Ice Cream Corp. (AMEX: FRN), a stock that has been the target of activist investor Sardar Biglari of The Lion Fund, is getting a pop today after the company announced that President and Chief Executive Officer John L. Cutter resigned to pursue other interests.

It is not clear if Cutter was forced out, but investors are liking the news.

Biglari recently said he is seeking two seats on the Board of Directors. At last count, Biglari's fund owned 12% of Friendly's shares outstanding.

Shares of Friendly are up 5% in afternoon action Thursday.