HOUSTON Landry's Restaurants Inc. chairman and chief executive Tilman J. Fertitta has lowered his bid to acquire the company, citing "significantly worsened" credit markets, the company said Friday.
Fertitta said in a letter this week to Landry's board that he would acquire all the company's outstanding stock for $21 per share. That represents a $40 million difference from his original offer of $23.50 a share. Including debt, the deal is valued at $1.3 billion.
Fertitta, who owns about 39 percent of Landry's shares, said the tightened credit markets would have made it difficult to obtain the financing necessary to complete the deal under his original offer, which he submitted in January. In his letter to Landry's, Fertitta said he could proceed with the revised offer and that investment bank Jeffries & Co. was "highly confident" in its ability to complete the deal.
Earlier this week, Landry's said that it had retained Cowen & Co. as an independent financial adviser to evaluate Fertitta's buyout offer.
Houston-based Landry's operates 179 casual-dining restaurants and two Golden Nugget casino-hotels. Its restaurant concepts include Landry's Seafood House, Chart House, Rainforest Cafe and Salt Grass Steak House, among others.