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March 2, 2008
Landry's is worth more because of what?
Did I read right what Steve Scheinthal, general counsel of Houston-based Landry's Restaurants, Inc., said in this Chronicle article?:
Landry's is . . . facing a handful of shareholder suits seeking class-action status in the wake of CEO Tilman Fertitta's bid to take the company private.
Fertitta made an offer on Jan. 27 to buy out the company at $23.50 for each unowned share. The $1.3 billion deal, including debt, is being reviewed by a special committee of the Landry's board. [. . .]
Scheinthal dismissed the shareholder suits as standard in a going-private transaction.
"Absent Mr. Fertitta's offer, the likelihood is that the company's stock would be trading well below the current market price," he said.
Landry's stock closed Friday at $17.73 a share, down 38 cents.
Fertitta's offer for Landry's was made without a financing commitment in a tough credit market. Yet, the company's general counsel is claiming publicly that such a speculative offer is all that is propping up the company's stock price?
I wonder what the boys over at Long or Short Capital will think about that?
Posted by Tom at March 2, 2008 12:00 AM
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