Pershing Square Makes a Big Move to Block Landry's Chairman

| About: Landry's Restaurants (LNY)

Pershing Square Capital Management, which is run by shareholder activist Bill Ackman, revealed Friday that it has increased its position in Landry’s Restaurant Inc. (LNY) to 4,008,387 shares or 24.8% of the company’s shares outstanding. Pershing Square’s position includes 1,604,255 common shares as well as an additional 2,404,126 shares that are controlled under certain cash-settled total return swaps.

On the 13th of November, Pershing Square disclosed that it held an aggregate interest in 23.4% of Landry’s shares out. According to last week’s HFS Catalyst Investment Research Report, the hedge fund manager opposes a previously announced management buyout led by Landry’s Chairman for $14.75 per share.

As of November 2nd, the Chairman owned 55.1% of LNY shares outstanding. The buyout transaction requires the approval by a majority of the outstanding shares not held by the Chairman. Notably, Pershing Square purchased its shares at an average cost basis of $13.94. Shares of LNY closed Friday at $19.51.

Disclosure: No positions