Industry Insider by Ray Poirier |
What’s the old saw about "third time never fails?" That was Tilman Fertitta’s hope last week when he offered – for the third time – to take Landry’s Restaurants Inc. (LNY) private.
This time, the offered price was $14.75 a share. Coming at a time when the shares were trading at a $10-plus value, the offer provided a handsome premium to current shareholders.
Almost immediately, the directors agreed to accept the $1.2 billion offer.
But, a major hedge fund that owns some 10 percent of the company did not.
In a regulatory filing on Friday, representatives of Pershing Square Capital Management said they would oppose Fertitta’s bid to buy the remaining shares that he doesn’t already own. He is said to own 55.1% of the outstanding stock.
The Pershing Square filing triggered major trading in LNY stock early Monday. At one time, the shares were trading far above $19 per share. At closing the shares were listed at $19.10, an increase of $2.92 for the day in which nearly 1.1 million shares changed hands.
Fertitta’s pursuit of the company, that he founded and that he serves as both chairman and CEO, began two years ago. His initial offer was $23.50 a share. The timing, however, was just before the credit crunch began.
Failing to generate sufficient funding for his initial offer, Fertitta reduced his offer to $13.50 per share. Even that, however, proved too difficult a financial goal.
Under the current takeover agreement, the company, whose inventory of operations includes nearly 300 restaurants as well as the Golden Nugget Hotel/Casinos in both Las Vegas and Laughlin, Nevada, will pay Fertitta a breakup fee of $2.4 million should it accept another offer.
Question? Comment? E-mail me at: Ray Poirier
Post a Comment or visit the Message Boards.
Give your 