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It’s bargain time for Landry's Restaurant shares

Dec 1, 2008 7:28 PM

by Ray Poirier | It looks like Christmas shopping started early for Tilman Fertitta.

Fertitta, CEO of Landry’s Restaurants, is committed to acquiring all outstanding shares of his company for $13.50 per share.

Recently, however, he has seen LNY shares trading at prices in the $10 and $11 range. Naturally, he hasn’t been able to resist taking advantage of the bargain.

In the middle two weeks of November, Fertitta snapped up another 338,929 shares. That cost him between $10.28 and $11.46 each, a substantial discount from the offer price.

Actually, Fertitta has been an active buyer of company stock for several weeks. Since late October, he has used nearly $25 million to acquire 8.6 million shares, giving him a company stake of just over 50%. He also holds options on another 900,000 shares.

The final buyout date has yet to be announced.

The company’s restaurants took a major hit from Hurricane Ike last summer, causing a major decline in its third quarter profit statement. However, several of the properties have since re-opened.