Kona Grill shares jump
By
Associated Press
June 27, 2008
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Shares of Kona Grill Inc. jumped Friday after Mill Road Capital disclosed a 8.2 percent stake in the company in a regulatory filing.
Mill Road said it had offered to buy the company for $10.75 per share and take it private in March. The company rejected the offer May 1, according to Mill Road's filing with the Securities and Exchange Commission on Thursday afternoon.
Cowen and Co. analyst Paul Westra reiterated an "Outperform" rating on the stock.
"We support the idea of a proactive investor taking a material stake in KONA; we, however, don't expect this takeover to succeed," he wrote. He said he doesn't think the $10.75 per share is a fair long-term value for Kona, and he also estimates that management controls nearly half of the company's shares _ and "also likely believes" that the shares' value is above the offer price.
A representative for Kona was not available to comment Friday afternoon.
Kona's shares rose 78 cents, or 11 percent, to $8.16 in afternoon trading. The stock has traded in a 52-week range of $6.15 and $20.