It's been a little over two weeks since Ark Restaurants (NASDAQ:ARKR) rejected an unsolicited takeover bid it received from restaurant chain owner Landry's, which offered to buy Ark out for $22 a share on February 8. This morning, Landry's announced its latest appeal to Ark's better angels, publishing the contents of a letter it sent to Ark management yesterday:
"Writing in response to the press release issued by Ark Restaurants," Landry's criticized Ark's "curt and uninformative" statement that had called its bid "inadequate, not compelling and not in the best interests of Ark Restaurants shareholders."
To the contrary, Landry's asserted, its bid of $22 is "extremely attractive," and offers "a significant premium" to Ark shareholders, given that current management has brought the company to a 4.6% decrease in same-store sales in the most recent quarter, along with "substantial losses." In Landry's view, Ark's board members are more interested in preserving their own jobs than in serving shareholder interests, and Landry's urges Ark's board to reconsider its rejection, and enter into a "negotiated transaction" for sale to Landry's.
At present, Ark shares sell for $20.80 apiece, or about 5.5% below Landry's offer price, but up about 0.3% from where the shares closed Thursday.
Fool contributor Rich Smith has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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