Landry's Restaurants CEO looks to lower buyout offer

By Angela McDaniels

Tacoma, Wash., Oct. 7 - Landry's Restaurants, Inc. said the debt financing needed by chairman, president and chief executive officer Tilman J. Fertitta to acquire the company is in jeopardy at the current $21-per-share price.

Fertitta is in negotiations with Jefferies & Co. about the financing for a transaction at a "substantially" reduced price, according to a Landry's news release. Fertitta cited the closure of the company's Kemah and Galveston properties, both in Texas; the instability in the credit markets; and the deterioration in the casual dining and gaming industries.

The company said the special committee of its board of directors and Fertitta have not yet agreed upon a new transaction and gave no assurance that a transaction at a reduced price will be reached.

In June, the Houston-based restaurant company agreed to be acquired by Fertitta through Fertitta Holdings, Inc. for $21 cash per share in a transaction valued at about $1.3 billion, including debt of about $885 million.

Landry's plans to hold a special meeting of stockholders to vote on the merger on Nov. 3. On Tuesday the company noted that the date is tentative.

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