UPDATE 1-Benihana reaches deal with dissident shareholder

* Coliseum Capital to cease proxy solicitation activity

* Benihana to support Coliseum nominee for director post

Aug 17 (BestGrowthStock) – Japanese-themed restaurant chain
Benihana Inc (BNHN.O: ), which has put itself up for sale, said
it reached an agreement with one of its dissident shareholders
in an effort to avoid a proxy fight.
Benihana has agreed to support Coliseum Capital Management’s
nominee Adam Gray for election at its annual meeting in
exchange for the investment firm ceasing its proxy solicitation
activities, the company said in a filing with the U.S.
Securities and Exchange Commission.

Coliseum and affiliates, which recently raised its stake in
Benihana to 14.9 percent, had nominated Gray to stand against
the company’s director slate.

But the company could still face a challenge as Benihana of
Tokyo — its largest shareholder owning 38.1 percent of its
outstanding shares — has also put up two nominees for election
to the board, scheduled for Sept. 14.

In July, the company, famous for its teppanyaki style
cuisine where chefs prepare food on a grill that is part of the
table, said it was considering options, including a sale of the
company. [ID:nSGE66C0IL]

The Miami-based company’s shares, which have lost about 20
percent of their market value over the last 12 months, were
down more than 1 percent at $6.33 in midday trade Tuesday on
Nasdaq.
(Reporting by Renju Jose in Bangalore; Editing by Maju
Samuel)

UPDATE 1-Benihana reaches deal with dissident shareholder