Lion Fund seeks to put its nominees on Friendly Ice Cream board

By Lisa Kerner

Charlotte, N.C., Jan. 10 - Sardar Biglari, chairman of the Lion Fund, LP, urged Friendly Ice Cream Corp. shareholders to vote in favor of his fund's nominees to the company's board of directors, citing alleged misrepresentation by the company's chairman of the board, Donald Smith.

Biglari wants to declassify the staggered board and place two Lion Fund representatives on the Friendly Ice Cream board, according to the filing.

In his Jan. 2 letter, included in a schedule 13D filing with the Securities and Exchange Commission, Biglari cites the lack of shareholder value since "Friendly's went public a decade ago at $18 per share."

The San Antonio-based Lion Fund owns 14.92% of the company's stock, or about 1.2 million shares.

The letter states that since the Lion Fund disclosed it large ownership in the company, "its stock price has risen to a level reflecting the expectation that positive change is in the offing."

Friendly's is a restaurant company based in Wilbraham, Mass.

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