by Ray Poirier | Directors of Landrys Restaurants (LNY) are making Tilman Fertitta look like Santa Claus.
In a message last week, the directors advised shareholders to vote in favor of Fertittas offer to take the company private. He has offered $1.3 billion or $21 per share.
The directors took months before accepting the bid. Actually, before they finally agreed to sell the company, the directors saw Fertittas offer drop from $23.50 to $21.
Now they are telling the shareholders, "There are no other bidders out there," so grab the cash while you can.
When the directors message went out, the share price LNY had fallen to $14.05, thus the offer represented a 50% premium over the trading price. Still investors remained resistant. After a brief buildup in price, the shares on Monday fell below the $15 level.
Fertitta, who raised a small Texas-based company into a nationally-recognized restaurant chain, was responsible for the company acquiring the Golden Nugget casinos in Las Vegas and Laughlin, Nevada. As company chairman and CEO, he pumped some $100 million in renovating the Las Vegas property, originally built by casino mogul Steve Wynn.