Landry's Restaurants Inc. CEO Tilman J. Fertitta is trying to finagle
a lower price for the restaurant operator again. Fertitta is apparently negotiating with Jefferies & Co. about financing for the transaction at a "substantially reduced" price, and you really can't blame him given the economic climate.
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In June, Fertitta offered to buy the remaining 61% of Landry's he
doesn't already own for $21 per share in cash or $1.3 billion after he cut his original offer of $23 per share by 11% in April citing
a tight credit market. The original offer represented a 37% premium over April 3's closing. The June offer represented a 25% premium to the June 15 close. Fertitta's June offer now represents a 60% premium over Monday's close of $13.11 a share.
Ferrita wants a lower price due to the continued instability in the credit markets and the fact that the restaurant
business just isn't doing as well as it was. Additionally, some of Landry's properties were hit hard by Hurricane Ike.
Landry's said three of the company's restaurants in Galveston, Texas,
are closed and not expected to open until 2009, according to a
CNN report. Houston
restaurants that were previously closed are now open.
- Maria Woehr
