Don't miss

Replay


LATEST SHOWS

THE OBSERVERS

The violinist of Venezuela's protests; and France's dying bees

Read more

FOCUS

Famine used as a weapon of war in South Sudan

Read more

THE DEBATE

Let's talk Africa-Asia partnerships (part 2)

Read more

THE DEBATE

Let's talk Africa-Asia partnerships (part 1)

Read more

BUSINESS DAILY

British Airways IT debacle could cost the airline big

Read more

TALKING EUROPE

Security in Europe: Is there more that could or should be done?

Read more

IN THE PAPERS

Is this the end of the Western post-war order?

Read more

THE INTERVIEW

Living with the 'new normal': How govts need to innovate in the fight against terrorism

Read more

IN THE PAPERS

Putin 'gets the tsar treatment' as he meets Macron in Versailles

Read more

Business

Private equity firm 3G Capital swallows Burger King

Text by News Wires

Latest update : 2010-09-02

Burger King, America's second-largest hamburger chain, has accepted a takeover bid by private equity firm 3G Capital valued at 3.26 billion dollars.

AP - Burger King Holdings Inc. said Thursday that it is selling itself to private equity firm 3G Capital in a deal valued at $3.26 billion.  Its shares soared to an 18-month high.

Thursday's $24-per-share offer comes after a day of speculation about the deal sent shares up more than 15 percent. The offer is a nearly 46 percent premium over the company's stock price before rumors began circulating about the deal.

Burger King is the nation's second-largest hamburger chain behind its far-larger rival McDonald's Corp. But with 12,100 locations, it's struggled because the economy has been bad for its most important group of customers: young men.

Under the terms of the deal with 3G, Burger King's Chairman and CEO John Chidsey will become co-chairman of the board. 3G Managing Partner Alex Behring will be the other co-chairman.

Burger King became publicly traded in 2006, four years after a consortium of private equity firms acquired the company.   The group TPG Capital, Bain Capital Partners and Goldman Sachs Funds still own 31 percent of Burger King's outstanding shares and have agreed to tender their stock in the deal.

3G is expected to begin its effort to acquire the outstanding shares by Sept. 17. Burger King shares rose $4.40, or 23 percent, to $23.26 in morning trading Thursday.

Date created : 2010-09-02

  • FRANCE

    Paris food show opens its doors to growing halal market

    Read more

  • FRANCE

    Politicians pounce on halal burger row

    Read more

COMMENT(S)