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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Grommit who wrote (8931)	11/13/1999 7:27:00 AM
From: Wallace Rivers	Respond to of 78627

On the subject of restaurants, What does everyone think of Avado Brands (AVDO)? Mike and Paul are already aware of it, as I've posted on the Arbitrage thread about it. Management led Buyout offer of $7.25 cash on the table (certainly not a "for sure"), stock trading at about $5.50, so you could make about 31% if the deal goes through as currently structured. Wisconsin (state?) group which owns a ton of shares, and is buying more, is raising a stink saying the offer is way too low (IMHO, they are probably right, and mgmt. led group is trying to steal the company). Raymond James analyst pegs value of the company at between the offer and mid nines (I'll get exact figures on Monday). So let's say a compromise is reached (there is a "special committee" in place) of 8-8.50, that's a pretty handsome return, even if you have to wait around until second calendar Q next year. I'm using my experience with SSI as a guide. Comments anyone? I have no position currently in AVDO.