Landry's Restaurants ( LNY) has offered to buy steakhouse operator Smith & Wollensky ( SWRG) in an acquisition that would value the target company at $7.50 a share.

"We believe that a combination of the two companies would be in the best interest of the stockholders of both companies," said Tilman J. Fertitta, chairman, president and CEO of Landry's.

Shares of Smith & Wollensky were soaring 44% to $7.25 on the news of the takeover bid. Landry's was up 0.9% at $30.45.

Landry's restaurants include Landry's Seafood House, Chart House, Rainforest Cafe and Saltgrass Steak House.