The New York Times reports that CKE Restaurants, the operator of Carl’s Jr. and Hardee’s restaurants said Tuesday that a rival buyout offer from an unnamed bidder was better than the one it had from a private equity firm, The Associated Press reported.
While the company didn’t name the mystery bidder, DealBook reported this month that the unnamed suitor was Apollo Management.
The news sent shares of CKE Restaurants up 82 cents, or 6.8 percent, to $12.81 in midday trading.
CKE said the $12.55 per share each stockholder would receive from the bidder was superior to a prior offer from Thomas H. Lee Partners, the buyout shop that was part of a consortium that bought Dunkin’ Brands in 2006.
CKE accepted Lee Partners’ offer of $11.05 a share in February. That offer includes about $619 million in cash and approximately $309 million in debt. But CKE said that it notified Lee Partners on Monday about the rival bid and that it planned to terminate its existing agreement based on what it felt was a superior proposal.
CKE is obligated by its existing deal with Lee Partners to talk to the firm for four business days about the offers in case Lee Partners wants to revise its bid. If a new agreement isn’t reached, CKE will send Lee Partners a notice that it is ending the existing deal in favor of the other bid.
Other realted reading at DDIFO.org: CKE Has Better Offer From Apollo and Other Buyers Interested in CKE and Carl’s Jr. Owner CKE Bought by Thomas Lee Partners
