Pershing Square to support Fertitta’s $1.4-billion bid for Landry's Restaurants
21 Jun 2010
Tilman Fertitta, the chief executive of US-based diversified restaurant, hospitality and entertainment group Landry's Restaurants Inc has received the support from one of the major shareholder for his $1.4-billion takeover bid of Landy's restaurant chain.
New York-based hedge fund sponsor, Pershing Square Capital Management, which holds a little under 25 per cent of Landry's stock, is expected to announce on Monday that it supports a buyout offer by Tilman Fertitta, The Wall Street Journal reported today citing a person familiar with the matter.
Pershing Square's support could possibly sway the deal in Fertitta's favour, who has been trying for the past two years to acquire the company in which he holds nearly 60-per cent stake.
Pershing Square agreed to support the deal after Fertitta agreed to raise his offer from $24 to $24.50 per share, and is expected to announce the deal today, the paper said.
Fertitta has been trying since the past two years to acquire Landry, but has faced stiff opposition from the company's board and shareholders including Pershing Square.
Last month, Fertitta offered to buy the entire remaining 100 stake in the company by offering to pay $24.00 per share in cash for a total consideration of approximately $1.4 billion.
Landry, based in Houston Texas, is a diversified restaurant, hospitality and entertainment company principally engaged in the owning and operating dining restaurants, primarily under the names of Rainforest Cafe, Saltgrass Steak House, Landry's Seafood House, Charley's Crab, The Chart House, and the Signature Group of restaurants.
The company is also owns and operates select hospitality businesses, including the Golden Nugget Hotel & Casinos in Las Vegas and Laughlin in Nevada.
