HOUSTON (KTRK) -- Landry's Restaurants Inc. CEO Tilman Fertitta has extended his unsolicited takeover bid for McCormick & Schmick's Seafood Restaurants Inc.
McCormick's board unanimously rejected Fertitta's $9.25 per-share offer on Wednesday, calling the price too low and "opportunistic". The tender offer was scheduled to expire on May 6 and no shares have been tendered so far. But on Friday Fertitta extended the offer until May 31. The offer would value the company at $137.2 million based on McCormick's 14.8 million shares outstanding at March 1. Fertitta, the company's third-largest shareholder with a 10 percent stake, made the offer earlier this month. McCormick & Schmick's has adopted a "poison pill" plan designed to fend off hostile takeover attempts. If shareholders attempt to acquire a stake of 15 percent or more, the plan will kick in and other shareholders will have the right to buy up more shares. Fertitta was not available Friday to comment on the deal. McCormick & Schmick's, based in Portland, Ore., operates 95 restaurants, including 88 in the United States and seven in Canada under The Boathouse brand. It has been struggling, reporting a loss of $23.2 million for its 2010 fiscal year, following a $15.6 million loss for 2009, as it booked higher costs. The company said last month that it has reviewed its restaurant portfolio to determine changes that need to be made. It is launching a multi-year service, hospitality and restaurant upgrade program aimed at boosting sales, customer traffic and profit margins. Shares of the company fell 38 cents, or more than 4 percent, to close at $8.91 on Friday. (Copyright ©2011 KTRK-TV/DT. All Rights Reserved.)
No comments:
Post a Comment