Landry's CEO makes new offer for company, blames credit market for lower price

By Lisa Kerner

Charlotte, N.C., April 7 - Landry's Restaurants, Inc. chairman, president and chief executive officer Tilman J. Fertitta made a revised offer to acquire the company for $21.00 per share, down from the $23.50 per share Fertitta offered on Jan. 28, according to a company news release.

Fertitta blamed credit market conditions, the economy's downward trend and the increased cost to obtain debt financing for the decrease in his offer.

Landry's special committee said it will review the latest proposal.

The $21.00-per-share offer price is a 37% premium over Landry's closing price on April 3, Fertitta said.

Fertitta delivered a letter from the investment bank Jefferies & Co., Inc. expressing confidence in its ability to consummate the debt financing required to complete the proposed transaction.

Total value of the transaction is estimated at $1.3 billion, including Fertitta's 39% equity ownership of the company.

On April 2, Landry's announced that the special committee retained Cowen and Co. to assist in the review of strategic alternatives.

Alternatives could include a sale of the company, a prior Landry's news release said.

Landry's is a Houston-based diversified restaurant hospitality and entertainment company.

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