Ark Restaurants Rejects Landry's Bid

Watch stocks you care about

The single, easiest way to keep track of all the stocks that matter...

Your own personalized stock watchlist!

It's a 100% FREE Motley Fool service...

Click Here Now

On Friday, Ark Restaurants (NASDAQ: ARKR  ) rejected the unsolicited takeover bid it received from Landry's two weeks ago.

Landry's is the owner of restaurant chains including Rainforest Cafe, Bubba Gump Shrimp Co., and McCormick & Schmick's. On Feb. 8, Landry's offered to buy all outstanding Ark Restaurants stock for $22 cash per share.

Ark, however, "after careful consideration," has determined that this bid is "inadequate." Chairman and Chief Executive Officer Michael Weinstein said in a statement: "The board believes that the proposal by Landry's significantly undervalues the company and its future prospects. In the board's judgment, Ark's shareholders will be better served by our experienced management operating and growing our business."

The $22 offer works out to only a 2.7% premium to Ark's current $21.42 share price. Ark itself pays shareholders a 4.7% dividend yield annually.

Read/Post Comments (1) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On May 01, 2013, at 11:04 AM, JudasTouch wrote:


    You state "[t}he $22 offer works out to only a 2.7% premium to Ark's current $21.42 share price. Ark itself pays shareholders a 4.7% dividend yield annually."

    To be fair, a better comparison would be to the average trading price before Landry's made the offer. A quick glance at the chart tells me that, for the year prior to the offer, that's probably around $15, representing about a 45% premium. And at $15, the stock was yielding around 6.7% in dividends.

    Interesting the stock price didn't plummet back to pre-offer levels after this rejection. I wonder if the market is paying more attention, or if consensus is that a deal can be worked out.

    Appreciate your coverage of this former Tiny Gem.

Add your comment.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2273128, ~/Articles/ArticleHandler.aspx, 5/5/2016 12:16:35 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Rich Smith

I like things that go "boom." Sonic or otherwise, that means I tend to gravitate towards defense and aerospace stocks. But to tell the truth, over the course of a dozen years writing for The Motley Fool, I have covered -- and continue to cover -- everything from retailers to consumer goods stocks, and from tech to banks to insurers as well. Follow me on Twitter or Facebook for the most important developments in defense & aerospace news, and other great stories besides.

Today's Market

updated Moments ago Sponsored by:
DOW 17,713.45 62.19 0.35%
S&P 500 2,057.41 6.29 0.31%
NASD 4,738.72 13.08 0.28%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

5/5/2016 11:11 AM
ARKR $20.13 Up +0.10 +0.50%