(Burger King article updated with new information and stock price movement.)
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.
"It may be best for the
concept to be out of the public eye for a while and allow the new management to concentrate on fixing its challenges," Kalinowski said.
Wall Street Journal
originally reported that one firm interested in acquiring Burger King was
, 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.
went on to say that Brazilian-backed
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 - Get Report)
. Behring spent a decade with Latin American private equity firm
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)
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