Landry’s launches formal bid for McCormick & Schmick’s

BANGALORE (Reuters) – Landry’s Restaurants Inc launched a formal hostile bid to buy McCormick & Schmick’s Seafood Restaurants Inc (MSSR.O: Quote, Profile, Research) for $9.25 a share through its subsidiary LSRI Holdings, after the sea food restaurant rejected its offer to negotiate a deal.

“McCormick & Schmick’s Board of Directors rejected our overtures to discuss a possible negotiated transaction. The Board of Directors has not approved this offer,” LSRI said in a regulatory filing on Thursday.

On Monday, Landry’s Chief Executive Tilman Fertitta said he was planning to launch a hostile bid for McCormick & Schmick’s, valuing it at about $137.3 million and building on his collection of seafood chains.

Fertitta bought out sea food restaurant chain Landry’s for $1.4 billion in cash last year, and is being backed by Jefferies Group regarding the funding of this deal.

He is one of McCormick & Schmick’s biggest shareholders with a 10.1 percent stake in the company.

“We will need approximately $125.0 million … to pay related fees and expenses, ” the filing said.

“Jefferies has committed, directly or through one or more of its affiliates, to provide financing to the Landry’s Group in an amount equal to $125.0 million in connection with the offer.”

McCormick & Schmick’s shares had closed at $9.47 on Wednesday on Nasdaq.

(Reporting by Nivedita Bhattacharjee)

Landry’s launches formal bid for McCormick & Schmick’s