What's interesting here too, after BH sold Biglari Capital Corp. back to Sardar in 2013, BH transferred Cracker Barrel shares owned directly by BH, and CAW shares owned by BH to The Lion Fund, LP ("TLF") and The Lion Fund II, LP ("TLF II") - BH's only "sole" stock holding is UNAM. Steak n Shake Operations, Inc. owns the Cracker Barrel stock that BH as a parent has interests in, but BH as a company still owns the UNAM stock directly, not through a subsidiary.
I take my theory another step further - Sardar mentioned in his 2013 letter that BH's objective is to increase it's ownership in businesses. Investments will "normally" be held by TLF and TLF II. So by NOT transferring UNAM stock to TLF, BH has to have plans relatively soon to acquire the business possibly.
Now I'm going out on a limb here, but I believe he will stay around UNAM, try to influence management (when time permits), increase stake slowly, offer a tender offer (has history of tenders), or bid for the company for BH. With his acquisition this past week of First Guard Insurance Company, he might get his insurance snowball rolling and fold UNAM in if possible.
UNAM owners will sell at the right price. Just will the price be right for BH?
Might be a good one to ride the coattail....
Disclosure: Long BH |
