Lone Star Steakhouse (STAR) Receives Slightly Increased Offer

After the close yesterday, Lone Star Steakhouse & Saloon, Inc. (Nasdaq: STAR) said its previously announced merger agreement with affiliates of Lone Star Funds, a Dallas-based private equity firm, has been increased from $27.10 to $27.35 per share.

The Company also said it pushed off the meeting of shareholders to vote on the proposed merger from November 30th to December 12.

Based on the original offer, a number of dissident shareholders said that they planned to vote against the deal, saying the price undervalued the restaurant chain. Those investors include Barington Capital, Deutsche Bank and Millenco LP. None of the opposing shareholders have yet to comment on the new offer.

In a recent letter to the company, one of those firms, Barington Capital said it has identified five parties that may be interested in purchasing the Company at a price higher than $27.10 per share if they are given the opportunity to review the Company’s non-public information without the requirement of having to first submit an acquisition proposal.