Fertitta’s attempt to take Landry's private in jeopardy

Nov 24, 2009 2:18 AM
Industry Insider by Ray Poirier |

Tilman Fertitta’s (pictured) efforts to take his Landry’s Restaurants Inc. (LNY) private by acquiring all outstanding shares he doesn’t currently own for $14.50 per share seemed to be in jeopardy over the weekend.

At odds to the move is William Ackman’s hedge fund, Pershing Square Capital Management, which has upped its stake in the restaurant/casino company to 25 percent. The fund is challenging Fertitta, company chairman and CEO, who owns 55.1 percent of the shares.

Analysts see Ackman’s move as an attempt to get Fertitta to increase his offer for the company, possibly to a level that is twice his initial offer.

Investors seem to be anticipating a larger offer as well since the shares on Monday closed at $21.79 each, an increase of $2.28.

Question? Comment? E-mail me at: Ray Poirier