Wednesday, March 07, 2007

Friendly Ice Cream (FRN) Higher On News They Hired a Banker For a Possible Sale; Biglari Sits Pretty

Activist target, Friendly Ice Cream Corporation (AMEX: FRN) is higher today after the company said it retained Goldman Sachs to assist the Board of Directors in exploring strategic alternatives to enhance shareholder value, including a possible sale of the company.

Friendly, as those who follow the blog know, is the activist target of Sardar Biglari who is Chairman of the Board of Western Sizzlin OTC: WSZL) and runs hedge fund The Lion Fund, LP.

Biglari, and those that have followed him into the stock, have made a killing. The stock was at $7.75 per share on 08/07/06, the day Biglari filled his original 13D. Today the stock is at $13.32 - a gain of 72%. (Mr. Buffett we have a new candidate to takeover for you).

One would have to assume Mr. Biglari would participate in a auction of the company. We will wait for an update.

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