Landry’s CEO Plans McCormick & Schmick’s Offer
HOUSTON (AP) – The CEO of Landry’s Restaurants Inc. plans to make a bid for the shares of McCormick & Schmick’s Seafood Restaurants Inc. that he and his affiliates don’t already own.
Tilman Fertitta said that his affiliate, LSRI Holdings Inc., which is a Landry’s subsidiary, plans to offer $9.25 per share. That is 30 percent more than McCormick & Schmick’s closing stock price of $7.12 on Friday.
The seafood restaurant operator’s stock jumped $1.39, or 19.5 percent, to $8.51 in pre-market trading on Monday.
The first Landry’s Restaurant opened in Katy, Texas, in 1980.
Fertitta, who is one of McCormick & Schmick’s biggest shareholders, already owns about 10.1 percent of the company’s outstanding stock.
Fertitta has secured a financing commitment from Jefferies Group Inc. He is requesting a list of McCormick & Schmick’s stockholders and anticipates sending a formal purchase offer to the company’s shareholders as soon as possible after getting the list.
McCormick & Schmick’s is based in Portland, Ore. Last month the company reported a bigger fourth-quarter loss due to higher costs. It also announced that it was launching a multi-year service, hospitality and restaurant upgrade program aimed at boosting sales, customer traffic and profit margins.
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