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Thread: John Malone Take Note

  1. #1
    Sirius Roadkill is offline
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    John Malone Take Note

    Tyler Savery might be asleep at the wheel, calling this thread "premature," but not me. I am watching you like a hawk John Malone; and I'm watching your Goldman Sachs waterboy Greg Maffei . . no more quid pro quos:

    COMP # 1 - 46% PREMIUM

    NEW YORK (CNNMoney.com) -- Burger King said Thursday that it has agreed to be acquired by investment firm 3G Capital in a deal valued at $4 billion.

    New York-based 3G Capital will buy the fast food chain for $24 a share. That marks a 46% premium over Burger King's closing price of $16.45 on Tuesday, the day before news reports said the company was up for sale.

    Burger King (BKC) shares rose almost 15% Wednesday after a Wall Street Journal report said 3i Group, based in London, was preparing to buy Burger King. But the Journal retracted that statement later in the day after 3i refuted it.

    After 3G Capital confirmed its purchase, the fast food chain's shares were up another 24% to trade at $23.40 Thursday.

    Burger King's board of directors has already approved the deal, which is slated to close during the fourth quarter. Burger King's chairman and chief executive, John Chidsey, will remain CEO during the transition and then take on the newly created role of co-chairman.

    TPG Capital LP, Goldman Sachs Capital Partners and Bain Capital Investors collectively own about 31% of Burger King's shares. Those firms took Burger King private in 2002, but it returned to the public market in 2006.

    Burger King has struggled more than its rival, McDonald's (MCD, Fortune 500), amid the recession. Last week it forecast weak demand for its new fiscal year, citing high U.S. unemployment rates and government austerity programs sweeping through Europe.

    The restaurant chain operates more than 12,150 restaurants in all 50 states and in 76 countries.


    And before anyone posts anything about the 3 year IRS change of ownership rule . . . please, go do some homework!
    Last edited by Sirius Roadkill; 09-02-2010 at 07:38 PM.

  2. #2
    sxminvestor is offline
    Quote Originally Posted by Sirius Roadkill View Post
    Tyler Savery might be asleep at the wheel, calling this thread "premature," but not me. I am watching you like a hawk John Malone; and I'm watching your Goldman Sachs waterboy Greg Maffei . . no more quid pro quos:

    COMP # 1 - 46% PREMIUM

    NEW YORK (CNNMoney.com) -- Burger King said Thursday that it has agreed to be acquired by investment firm 3G Capital in a deal valued at $4 billion.

    New York-based 3G Capital will buy the fast food chain for $24 a share. That marks a 46% premium over Burger King's closing price of $16.45 on Tuesday, the day before news reports said the company was up for sale.

    Burger King (BKC) shares rose almost 15% Wednesday after a Wall Street Journal report said 3i Group, based in London, was preparing to buy Burger King. But the Journal retracted that statement later in the day after 3i refuted it.

    After 3G Capital confirmed its purchase, the fast food chain's shares were up another 24% to trade at $23.40 Thursday.

    Burger King's board of directors has already approved the deal, which is slated to close during the fourth quarter. Burger King's chairman and chief executive, John Chidsey, will remain CEO during the transition and then take on the newly created role of co-chairman.

    TPG Capital LP, Goldman Sachs Capital Partners and Bain Capital Investors collectively own about 31% of Burger King's shares. Those firms took Burger King private in 2002, but it returned to the public market in 2006.

    Burger King has struggled more than its rival, McDonald's (MCD, Fortune 500), amid the recession. Last week it forecast weak demand for its new fiscal year, citing high U.S. unemployment rates and government austerity programs sweeping through Europe.

    The restaurant chain operates more than 12,150 restaurants in all 50 states and in 76 countries.


    And before anyone posts anything about the 3 year IRS change of ownership rule . . . please, go do some homework!
    so Roadkill, you would take 1.46/share buyout ?

  3. #3
    Sirius Roadkill is offline
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    Quote Originally Posted by sxminvestor View Post
    so Roadkill, you would take 1.46/share buyout ?
    no-no-no . . . I'm putting this out for reference only and to put John Malone on notice.

    This is just 1 comp . . I will track others as well.

    An "acceptable" premium would have to be applied to the "Fair Value" that occurs after Feb 2011 or else the BOD (most of whom will secure new equity positions as directors in the newly formed entity) will have failed their fiduciary responsibility to current shareholders.

    Hypothetically, utilizing Tuna Amobi's 1 Year $1.50 price target and assuming that 6-9 months from now SP & FV are aligned at $1.50 . . . 46% premium may or may not be the right benchmark, it is just one data-point . . . but as a pure mathematical exercise, the Tender Offer would be $2.19 (I can hear John Malone choking on his Lobster tails now)

    As a footnote, the current $0.99 SP (posted on 9/2) is the by-product of purely synthetic trading and does not equal the current fair value of the Equity, imo . . . but dyodd
    Last edited by Sirius Roadkill; 09-02-2010 at 11:55 PM.

  4. #4
    SiriMonkey is offline
    Burger King stockholders must be one happy bunch today.
    That's a WHOPPER of a deal.

    Julie

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