This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Burger King Takeover a Good Idea

(Burger King article updated with new information and stock price movement.)

MIAMI ( TheStreet) -- Shares of Burger King Holdings (BKC) surged on heavy volume Wednesday as rumors of a potential private-equity takeover circulated on Wall Street.

"There's been a scuttlebutt about a possibility like that for a while now," Janney Montgomery Scott analyst Mark Kalinowski told TheStreet, citing a slew of private equity interest in other restaurant chains this year as well.
Burger King

"It may be best for the [Burger King] concept to be out of the public eye for a while and allow the new management to concentrate on fixing its challenges," Kalinowski said.

The Wall Street Journal originally reported that one firm interested in acquiring Burger King was 3i Group, a British private-equity firm, citing people familiar with the matter.

But 3i Group emphatically denied such speculations to the New York Times, saying it had no interest in the fast-food chain and that it, a middle-market firm, typically involves itself in much smaller deals than the $2 billion or $3 billion that would be necessary for a leveraged buyout of Burger King.

The Times went on to say that Brazilian-backed 3G Capital was among the interested parties in buyout talks with Burger King, led by Alexandre Behring, a former railroad executive who sat on the board of Jacksonville, Fla.-based CSX (CSX - Get Report). Behring spent a decade with Latin American private equity firm GP Investments.

At some point in 2008, 3G held a 6.7% stake in another struggling fast-food chain: Wendy's Arby's Group (WEN - Get Report), the Times noted.

>>Bankruptcy Watch: 20 Riskiest Restaurant Stocks
1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
CSX $26.54 0.00%
EAT $46.77 0.00%
JACK $68.44 0.00%
MCD $128.40 0.00%
SONC $34.67 0.00%


Chart of I:DJI
DOW 17,750.91 -140.25 -0.78%
S&P 500 2,063.37 -18.06 -0.87%
NASDAQ 4,763.2240 -54.37 -1.13%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs