Monday, March 19, 2007

Barington Capital Discloses 5.2% Stake in Lancaster Colony (LANC), Request Divestitures and $300M Buyback

In a 13D filing on Lancaster Colony Corp. (Nasdaq: LANC), Barington Capital and related parties disclosed a 5.2% stake in the company. The firm also said the company should implement a number of measures to improve profitability and share price performance.

The measures the firm recommended include: 1. the divestiture of the Company's Automotive segment and Glassware and Candles segment; 2. reduction in corporate level expenses resulting from Lancaster Colony's "holding-company" structure; 3. implementation of initiatives to return the Specialty Foods segment to historical levels of profitability with an operating income margin of at least 20%; and a debt-financed self-tender offer to repurchase at least $300 million of the Company's outstanding common stock.

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