PORTLAND, Oreg. ( TheStreet) -- McCormick & Schmick's Seafood Restaurant ( MSSR) shares continued their ascent Tuesday after Landry's Restaurants founder and CEO Tilman J. Fertitta offered to acquire the chain for $137.2 million.

Fertitta said early Monday he would pay $9.25 per share for each McCormick & Schmick's share he did not already own, a 30% premium to the target's Friday closing price of $7.12.

His offer would be made though a unit of Landry's which has been acquired novelty restaurant brands such as Bubba Gump Shrimp, Oceanaire and Claim Jumper steakhouses.

Landry's traded publicly until last year when Fertitta took it private for $1.4 billion.


McCormick & Schmick's shares soared 29.5% to close at $9.22 on Monday, the day the offer was first announced, and the stock climbed another 4.9% to $9.67 Tuesday afternoon.

McCormick & Schmick's said Tuesday it "did not solicit such an offer from Fertitta and has had no discussions with Mr. Fertitta concerning it," but said if the offer were formally made its board of directors would "respond appropriately in accordance with its fiduciary duties."

"The board has made no decision at this point whether to initiate or enter into discussions with Mr. Fertitta or any other party or to consider any sale or other strategic transaction concerning the Company," the McCormick & Schmick's statement said.

Fertitta already owns 10.1% stake in McCormick & Schmick's, making him the seafood chain's third-largest shareholder.

M&A is staging a comeback in 2011 across the equities sectors.

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"With further stabilization in the credit markets, we also expect a handful of blockbuster strategic acquisitions this year, many of which could change the landscape of their respective industries," noted Morningstar analyst R. J. Hottovy earlier this year.

EarlyTuesday, Procter & Gamble ( PG) said it will divest its Pringles potato chips brand to Diamond Foods ( DMND) for $1.5 billion worth of stock.


In March General Mills ( GIS) acquired a 51.5% stake in French yogurt maker Yoplait in a deal valued at $1.1 billion. HJ Heinz ( HNZ) also looked overseas for growth, announcing it acquired 80% of Brazil's Coniexpress S.A. Industrias Alimenticias, maker of the Quero brand of ketchup and condiments.


Other firms looked to growing niche markets for expansion. Anheuser-Busch InBev ( BUD) said last week it would pay a combined $38.8 million to acquire Chicago-based craft brewer Goose Island Beer; and Coca-Cola ( KO) exercised its right to acquire the remaining portion of organic bottled tea maker Honest Tea for an undisclosed amount.

-- Written by Miriam Marcus Reimer in New York.

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