CKE considers second takeover proposal
April 20, 2010
by Eric Schroeder
CARPINTERIA, CALIF. – CKE Restaurants, Inc. on April 20 said it has received a better takeover proposal than the one it already has from private equity firm Thomas H. Lee Partners, L.P.
CKE said the $12.55 per share each stockholder would receive in a bid from Western Acquisition Holdings Inc. is superior to the offer the company accepted in February from Boston-based Thomas H. Lee. Under terms of its deal with Thomas H. Lee, CKE would have received $11.05 in cash for each share, making the transaction worth about $619 million in cash and approximately $309 million in debt.
CKE said it now has four days to discuss a possible revised deal with Thomas H. Lee. If a new agreement is not reached, CKE will send the private equity firm a notice ending the deal in favor of Weston’s offer. Western’s offer expires on April 24.