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Landry's Restaurants agrees to be bought out by founder

June 17, 2008|From Bloomberg News

Landry's Restaurants Inc., owner of dozens of restaurants across the nation including the Chart House and Rainforest Cafe chains, said Monday that it had agreed to a buyout by its founder that values the company at $415 million.

Landry's stock climbed $2.98, or 18%, to $19.77 on the news, the biggest gain since Jan. 28, when Chief Executive Tilman J. Fertitta first offered to buy the 61% of the company's shares he didn't already own.

Fertitta Holdings Inc. made a $21-a-share bid, Houston-based Landry's said. The CEO reduced an earlier offer by 11%, citing credit-market conditions that made it more expensive for him to obtain financing.

The buyout is set to be completed in four months, Landry's said. The deal includes Fertitta's stake and transaction costs. The company also has $885 million in debt.

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