Landry's says Pershing Square to vote for buyout

Date: Tuesday, June 22, 2010
Author: Reuters

Landry's Restaurants Inc (LNY.N) said hedge fund Pershing Square Capital Management agreed to vote in favor of a buyout by Chief Executive Tilman Fertitta, after Fertitta further raised his offer to take the company private.

Fertitta, who owns about 55 percent of the seafood operator's outstanding shares, sweetened his bid by 50 cents to $24.50 a share, the company said in a statement.

Pershing Square, headed by activist investor William Ackman, has been resisting Fertitta's takeover of the restaurant chain saying the offer price was low.

Fertitta, who had offered to take the company private for $14.75 per share in November, raised it to $21 per share in April and $24 per share in May.

Ackman and his affiliates collectively own about 9.9 percent of company's outstanding shares, Landry's said.

The company, however, said it would continue to conduct on "active" go-shop process until July 7, unless extended..

Wall Street Journal first reported that Pershing Square has agreed to Fertitta's buyout offer in exchange for Fertitta raising his bid.

Landry's shares were trading up 2 percent at $24.42 Monday morning on the New York Stock Exchange.