This Day On The Street
Continue to site
ADVERTISEMENT
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

Biglari Holdings Responds To FTC Allegations

SAN ANTONIO, TX, September 25, 2012 /PRNewswire/ -- Biglari Holdings Inc. (NYSE: BH) ("Biglari Holdings") today issued its following response to allegations made by the Federal Trade Commission (the "FTC") regarding the settlement reached between the parties related to Biglari Holdings' acquisition of shares of Cracker Barrel Old Country Store, Inc.

The FTC has provided comments to the media regarding the settlement that require clarification. In August 2011 Biglari Holdings filed for Hart-Scott-Rodino approval concerning its purchase of shares of Cracker Barrel, and received FTC clearance in September 2011. All purchases of Cracker Barrel shares were fully and promptly disclosed in the marketplace, and Biglari Holdings did not nominate directors for election to the Cracker Barrel Board until after the Hart-Scott-Rodino forms had been filed.  No purchases were made subsequent to the time of the nomination of directors and prior to receiving FTC approval of the Hart-Scott-Rodino filing.

Comments made by both the Chairman of the agency and an unnamed FTC source in Bloomberg incorrectly refer to the "passive investment exemption" and state that "Biglari improperly failed to report the transaction to U.S. antitrust authorities by claiming the purchases were a 'passive' investment when, in reality, Biglari intended to become actively involved in the management of Cracker Barrel." Yet Biglari Holdings clarified to the FTC in a letter that the August 2011 Hart-Scott-Rodino filing was a "corrective filing" to address what had been an inadvertent failure to file the Hart-Scott-Rodino notice; it was not an attempt to rely on the passive investment exemption. The comments made by the FTC mischaracterize Biglari Holdings' investment intent. Biglari Holdings has made clear in all of its public filings that it has no intention of becoming actively involved in day-to-day management or in seeking control of the Board of Cracker Barrel. Moreover, Biglari Holdings desired to settle this matter to avoid the unnecessary legal expense caused by the FTC process, which, in its view, would be far in excess of $850,000. Instead, Biglari Holdings acknowledged its technical error of inadvertently failing to make its initial Hart-Scott-Rodino filing in a timely manner.

SOURCE Biglari Holdings Inc.

Copyright 2011 PR Newswire. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs