Landry's Okay's $1.2B Merger Agreement

HOUSTON-After a year-long struggle, Landry’s Restaurants Inc.’s board of directors has entered into a definitive merger agreement with a company owned by Landry’s founder, chairman and CEO Tilman Fertitta. The Fertitta company has agreed to acquire all of Landry’s outstanding common stock for $14.75 per share in cash, or $1.2 billion, which will take Landry’s private.

According to a statement issued by the company, the offer was a premium of approximately 37% over the closing share price of Landry’s common stock on Nov. 2. The statement said that Fertitta currently owns approximately 55.1% of Landry’s outstanding common stock shares.

The statement goes on to say that, pending approval by Landry’s shareholders and other regulatory approval, the deal should be completed in the first half of 2010. The company will continue soliciting alternative acquisition proposals from other parties until Dec. 17 or until Landry’s debt refinancing is finished. However, Landry’s would be required to pay a $2.4 million break-up fee if it decided not to continue with the merger agreement. Calls to Landry’s were not returned by deadline.