Landry's CEO negotiating lower acquisition price
Tuesday October 7, 7:52 am ET
Landry's CEO trying to buy restaurant operator at lower price than he previously offered
HOUSTON (AP) -- Landry's Restaurants Inc. said Tuesday Chairman, Chief Executive and President Tilman J. Fertitta is trying to buy the restaurant operator for a lower price amid continued weakness in the credit markets.
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In June, Landry's said Fertitta will buy the remaining 61 percent of Landry's he doesn't already own for $21 per share in cash, which represents a premium of about 60 percent from Monday's closing price of $13.11. The company said the deal was valued at about $415 million, plus about $885 million in debt, for total consideration of $1.3 billion.
Landry's said Fertitta said the pending transaction is "in jeopardy" at the $21 per share price because of the closing of two properties, instability in the credit markets and deterioration in the casual dining and gaming industries.
Fertitta is negotiating with Jefferies & Co. about financing for the transaction at a "substantially reduced" price, Landry's said.
A special committee of the board of directors and Fertitta have not yet agreed on terms of a new transaction, nor is there assurance that a lower-priced deal will be reached.
Separately, Landry's said three of the company's restaurants in Galveston, Texas, are closed and not expected to open until 2009. All other Houston restaurants that were previously closed are now open. Both cities were hit hard by Hurricane Ike.
biz.yahoo.com
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stay tuned, CEO bought some stock prior to this. |
