OSI Restaurant Partners To Take Company Private, Shares Jump 22%

Excerpt from our Wall Street Breakfast, a one-page summary of this morning's key market-moving and stock-moving stories:

Outback Offer a Little Underdone [Motley Fool]

Summary: Motley Fool writer Nathan Parmelee picked OSI Restaurant Partners (formerly Outback Steakhouse), at $28.19 a share, to outperform the market. Shares had already been doing quite nicely when yesterday, the Tampa-based company announced that its founders, along with two private equity firms, have agreed to take the company private for $40 a share in cash, valuing OSI at about $3.2 billion, debt included. The shares shot up to nearly $40 in composite trading yesterday, closing up $7.32, or 22.5% (click chart to enlarge). The news also gave a boost to the share price of other restaurant companies, including Applebee's International and Brinker International. The deal is entirely in cash and OSI has said it will solicit and review superior proposals over the next 50 days.
Related links: Pirate Capital Dumps Stake in OSI Restaurant • Major Stakeholder Opposed to Lone Star Steakhouse Merger • Restaurant Stocks: Gross & Operating Margins • Outback Steakhouse Parent to Go Private for $3.2B [MarketWatch]
Potentially impacted stocks and ETFs: OSI Restaurant Partners (OSI), Applebee's (APPB), Brinker International (EAT), Ruth's Chris Steak House (RUTH), O'Charley's (CHUX), Sonic Corporation (SONC), Ryan's Restaurant Group (RYAN), Lone Star Steakhouse & Saloon (STAR), Texas Roadhouse (TXRH)

Seeking Alpha's Wall Street Breakfast summarizes today's key market- and stock-moving news. Receive it by email every weekday morning (free/no spam).

Seeking Alpha is not affiliated with Motley Fool.