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New Bid for CKE Restaurants

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CKE Restaurants Inc.
(CKR), the quick-service restaurant operator, recently hinted that it has received an alternative takeover offer from another bidder without revealing its identity. The company informed that it will continue to hold talks with the new bidder until April 27, 2010.
In February 2010, CKE, the owner of the Hardee's and Carl's Jr. hamburger chains, agreed to a buyout offer from Boston, Massachusetts-based private equity investment firm Thomas H. Lee Partners. The firm agreed to acquire CKE for around $928 million, including the assumption of approximately $309 million of net debt. CKE shareholders were to receive $11.05 in cash for each share of the company they held.
Nelson Peltz’s Trian Fund Management, the owner of Wendy’s/Arby’s Group Inc. (WEN - Free Report) was also looking to acquire the restaurant chain but later dropped the idea.
CKE recently posted sales results for the four-week period ended March 22, 2010 for its company-owned locations. The company said that blended same-store sales dipped 4.1% for the period. Same-store sales tumbled 7.6% at Carl's Jr. restaurants but inched up 0.5% at Hardee's restaurants.
At the end of fiscal 2010, CKE operated 3,141 restaurants in 42 states and in 16 countries, including 1,224 Carl's Jr. restaurants and 1,905 Hardee's restaurants.

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