M&A

13 November, 2009

UPDATE 1-Pershing reports Landry's stake; opposes CEO takeover

* Says will not support planned takeover of Landry's by CEO

* Says buys 1.6 mln shares for $21.7 mln

Nov 13 (Reuters) - Pershing Square Capital Management LP on Friday reported a 9.6 percent stake in Landry's Restaurants Inc (LNY.N), and said it will not support a planned takeover of the restaurant chain by its chief executive.

Pershing Square, headed by activist investor William Ackman, purchased about 1.6 million shares of Landry's for $21.7 million, it said in a regulatory filing.

Richard McGuire, an ex-partner at Pershing and current chairman at Borders Group Inc (BGP.N), reported a further stake of 50,000 shares in Landry's.

The filing reported that Pershing and its affiliates controlled an additional 2.2 million shares under certain cash-settled total return swaps, bringing their total exposure in Landry's to 3.8 million shares.

Last week, Landry's had agreed to be taken private by its CEO Tilman Fertitta in a $1.2 billion cash deal that valued the company at $14.75 a share. [ID:nBNG519535]

Shares of the company, which operates the iconic Golden Nugget Hotel & Casino in Las Vegas and several casual dining outlets including Landry's Seafood House, closed at $16.18 Friday on the New York Stock Exchange. (Reporting by Renju Jose; Editing by Anthony Kurian)

Source: http://www.reuters.com