Ark Restaurants Rejects Landry's Bid

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On Friday, Ark Restaurantsrejected 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.

The article Ark Restaurants Rejects Landry's Bid originally appeared on Fool.com.

Fool contributor Rich Smith and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't 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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