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Landry's price lowered

Oct 20, 2008 7:37 PM

by Ray Poirier | Tilman Fertitta, chairman and CEO of Landry’s Restaurants Inc., will get to buy out the other stockholders in the company, but this time at an even lesser price.

According to the company, the directors have agreed to accept Fertitta’s offer to buy all the existing shares that he does not already own for $13.50 a share.

That’s a lot less than the $21 he previously offered but later withdrew because he was unable to get the financing.

It all started many months ago when Fertitta said he wanted to take the company private and felt that $23.50 a share was reasonable. That offer didn’t last long, however, because as soon as the general market conditions showed weakness, he lowered the price to $21.

At the time, his offer was supported by Jefferies & Company, Inc., which said that by Fertitta putting up his 39% share of the company, as well as some cash, it was confident that the financing would be available.

However, as the credit freeze hit most financial institutions, it became obvious that the offer would be withdrawn, causing the company’s share price to drop to less than $10.

Also complicating the buyout was the recent Hurricane Ike that hit the Galveston and Houston, Texas, areas, causing many of the Landry’s restaurants to close, placing the company in a position of possibly failing to meet it loan covenants.

In making the announcement, the directors said they would spend the next 30 days seeking to determine if there is anyone interested in topping the Fertitta offer.