Another Friendly Ice Cream shareholder seeks change in board

By Lisa Kerner

Charlotte, N.C., March 8 - Friendly Ice Cream Corp. investor S. Prestley Blake 1988 Trust purchased 100,000 shares of the company's common stock priced at $11.95 per share on March 5, according to a schedule 13D filing with the Securities and Exchange Commission.

The trust is the beneficial owner of 1,055,100 shares, or 13%, of the Wilbraham, Mass., restaurant company.

S. Prestley Blake, a trustee of the trust, is the plaintiff in a derivative lawsuit pending against Friendly's. Blake believes that company chairman Donald Smith arranged a series of "improper business transactions" between Friendly's and a restaurant company in which Smith has an equity interest.

A judge found that Friendly's board of directors "failed to meet the standard of independence," according to the filing. As a result, Blake is seeking a change in the board's composition, including more independent directors.

In a Tuesday SEC filing, another Friendly investor, Lion Fund, LP chairman Sardar Biglari, sought shareholder support for the nomination of himself and Philip L. Cooley to the company's board.

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

Like Blake, Biglari expressed concerns about chairman Donald Smith and the board of directors.

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