Barington Capital Thinks Lone Star Steakhouse (STAR) Takeover Price Is Too Low
In an amended 13D filing on Lone Star Steakhouse & Saloon Inc. (Nasdaq: STAR), large shareholder Barington Capital disclosed a press release noting that, based on its analysis, it believes that the $27.10 per share merger agreement recently entered into by the company fails to provide adequate value to the Company's stockholders.
Barington said that Lone Star's stock has traded higher than the transaction price less than three months prior to the date the deal was announced.
Barington also notes that CL King & Associates' analyst Michael Gallo has reported that the $27.10 share price looks low in their view and that Oppenheimer & Co. analyst Michael Smith currently rates Lone Star a buy with a 12-month price target of $32 a share.
Chairman and Chief Executive Officer of Barington Capital, James A. Mitarotonda, said, "We intend to thoroughly review the transaction and all alternatives available to the Company."
Barington represents a group of investors that owns, in the aggregate, approximately 9.4% of the outstanding common stock of the Company.
Barington said that Lone Star's stock has traded higher than the transaction price less than three months prior to the date the deal was announced.
Barington also notes that CL King & Associates' analyst Michael Gallo has reported that the $27.10 share price looks low in their view and that Oppenheimer & Co. analyst Michael Smith currently rates Lone Star a buy with a 12-month price target of $32 a share.
Chairman and Chief Executive Officer of Barington Capital, James A. Mitarotonda, said, "We intend to thoroughly review the transaction and all alternatives available to the Company."
Barington represents a group of investors that owns, in the aggregate, approximately 9.4% of the outstanding common stock of the Company.
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posted by Lon at 10:13 AM
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