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Monday, November 16, 2009

Pershing Square Capital to Oppose Buyout of Landry's

FOXBusiness

Landry’s Restaurants, Inc., (LNY) the company which owns and operates restaurants and hotels like Rainforest Cafe the Golden Nugget in Las Vegas, Nev., saw shares jump on Monday after news broke on Friday that its buyout offer from chief executive Tilman Fertitta will face some opposition.

Hedge fund Pershing Square Capital Management LP will contest the deal, according to reports.

The hedge fund, run by activist investor William Ackman, has a 9.6% stake in the company according to Reuters, and the fund said in a regulatory filing that it does not intend to vote in support of the move to take the firm private.

The deal, which is valued at $1.2 billion, would involve Fertitta’s purchase of all outstanding shares of the company for $14.75 a share; Fertitta already owns a 55.1% stake.

Shares of the company rose $2.92 or 18.05% in Monday’s session, to close at $19.10 a share, more than $4.00 a share higher than Fertitta’s offer.

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