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VOL. 125 | NO. 200 | Thursday, October 14, 2010

Proposed Burger King Buyout Clears Another Hurdle

AP

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MIAMI (AP) – Investment firm 3G Capital's proposed $3.26 billion buyout of Burger King Holdings Inc. has cleared another hurdle as the 40 days that the burger chain was given to solicit third-party offers has expired.

Burger King said Wednesday that it did not receive any other bids during that time.

Last month the Federal Trade Commission ended the proposed deal's antitrust waiting period early without raising any objection.

The tender offer of $24 a share and withdrawal rights related to the transaction are set to expire on Thursday unless extended or ended earlier.

The deal announced in September is viewed by Burger King as a way to expand more rapidly overseas. The companies value the transaction at $4 billion including debt that the buyer would assume.

Burger King has struggled in the weak economy as its main customers – men between 18 and 34 – suffer high rates of unemployment. It continues to lag its far larger competitor McDonald's Corp., which has more locations abroad.

Burger King became publicly traded in 2006, four years after an earlier consortium of investment firms acquired the company. That group – TPG Capital, Bain Capital Partners and Goldman Sachs Funds – still owns 31 percent of Burger King's outstanding shares and has agreed to tender their stock in the latest deal.

Burger King's Chairman and CEO John Chidsey will become co-chairman of the company after the tender offer is complete. 3G Capital Managing Partner Alex Behring will join Chidsey as co-chairman.

Burger King said it continues to recommend that shareholders tender their stock.

Burger King, based in Miami, runs more than 12,150 restaurants in all 50 states and in 76 countries and U.S. territories worldwide.

Copyright 2010 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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