More on the potential Burger King Worldwide-Tim Hortons merger

|By:, SA News Editor

Shares of Burger King Worldwide (NYSE:BKW) shoot higher in early trading after the company confirms it's in talks to buy Canadian restaurant operator Tim Horton (NYSE:THI).

Combined, the two restaurant chains operate 18K outlets and churn up $22B in sales.

The early take from restaurant analysts is that the merger could create enormous synergies, although a hit to the Burger King brand would be risked by relocating its headquarters to Canada to seek out lower taxes.

3G Capital is the majority owner of Burger King.

BKW +7.0% premarket to $29.01.