Why This Shareholder Opposes the Buffalo Wild Wings Buyout

Arby's Restaurant Group and Buffalo Wild Wings (NASDAQ: BWLD) announced plans to merge on Nov. 28. Investors and media had been speculating since news first broke that Roark Capital -- a private equity firm and Arby's majority stakeholder -- had approached Buffalo Wild Wings management with an offer to take over the company.

Shares had been climbing ever since, and now that the news is official, the stock is up over 30% in November. That may seem like good news for shareholders, but there is more to this story.

In exchange for their ownership stake, Buffalo Wild Wings shareholders will be given $157 per share in cash. That values the company at $2.9 billion including net debt. After the transaction closes, B-Dubs will continue to operate independently from Arby's but as its wholly owned subsidiary.

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Source: Fool.com