Today a buyout deal for Burger King Holdings Inc by investment firm 3G Capital, at a value of $24 per share, or about $4 billion, was announced at 9:22AM
Shares of Burger King, the No. 2 U.S. hamburger chain, surged 23 percent to $23.20 after the report. They had gained nearly 15 percent on Wednesday after news of a potential deal first emerged. So Burger King went from around $15 on Wednesday to over $23 today. An increase of around 52%
At 10:38AM Tripp Levy PLLC sent out their press release stating:
“The investigation concerns, among other things, whether the consideration to be paid to Burger King shareholders is grossly unfair, inadequate, and substantially below the fair or inherent value of Burger King. The investigation further concerns whether the directors of Burger King may have breached their fiduciary duties by not acting in Burger King shareholders' best interests in connection with the sale process of Burger King.”
At 11:18AM today the firm of Levi & Korsinsky, LLP sent out their press release stating:
“For the quarter ending June 30, 2010, Burger King reported total revenue of $623 million and net income of $49 million as compared to total revenue and net income of $596.90 million and $41 million, respectively, for the prior quarter. The investigation concerns whether the Burger King Board of Directors breached their fiduciary duties to Burger King stockholders by failing to adequately shop the Company before entering into this transaction and whether 3G is underpaying for Burger King shares, thus unlawfully harming Burger King stockholders.”
At 11:20AM today the firm of Rigrodsky & Long, P.A. sends out their press release stating that
“The investigation concerns whether Burger Kings’s board of directors failed to adequately shop the Company and obtain the best price possible for Burger Kings’s shareholders before entering into the agreement with 3G Capital. Moreover, Burger King Chairman and CEO, John Chidsey, will remain through the transition period in his current capacity and subsequently assume a newly created position of Co-Chairman of the Board.”
All three of the above firms are trying to solicit plaintiffs so that they can collect
As part of the agreement with 3G Capital Burger King said “the Company may solicit superior proposals from third parties for a period of 40 calendar days continuing through October 12, 2010. It is not anticipated that any developments will be disclosed with regard to this process unless the Company’s Board of Directors makes a decision with respect to a potential superior proposal. There are no guarantees that this process will result in a superior proposal.”
So if you are a shareholder what do you do? You need to pick one of the firms above so that you can get the money you need to build your retirement fund. After all, it’s the American Way! Obviously #3 took from 9:22 AM to 11:20 , almost 2 hours to get out their release. Do you want to deal with a “number 3” company? Number 2 didn’t do much better. So there is only one pick left. Obviously Tripp Levy must have a “jack rabbit” staff that can fire out Press Releases at a moments notice. Helping the stockholders recoup millions, perhaps billions, of dollars that has been illegally withheld from them is a high priority, I am sure.
So hold the pickles, hold the lettuce all we ask is that you don't forget us, all we want is that you sue them our way. . . .
One question.How much does this cost the company and the shareholders?
