Burger King Shares Surge on Sale Report
Updated from 3:56 a.m. EDT
The stock was surging by 16.1% to $19.10 in premarket trading Wednesday.
The status of the talks is unclear but one interested firm was 3i Group, a British private-equity firm, the Journal says, citing people familiar with the matter.A spokeswoman for Burger King declined comment for the newspaper; 3i wasn't available for comment. Burger King, a public company since 2006, has been in the hands of private equity before, the Journal notes. In 2002, a group led by TPG Capital, Bain Capital and Goldman Sachs Capital Partners bought Burger King for about $1.5 billion from Diageo (DEO). The firms still own 32% of Burger King, and have significant representation on the board. Burger King, which operates more than 12,000 restaurants around the world, has been a victim of a sluggish recovery in the global economy. Its sales across the globe for the 2010 fiscal year fell 2.3%, compared with a 1.2% rise the prior year. Its U.S. and Canadian shares also declined 3.9%, the Journal notes. Burger King's market capitalization is about $2.26 billion.
-- Written by Joseph Woelfel
>To contact the writer of this article, click here: Joseph Woelfel >To submit a news tip, send an email to: email@example.com.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV