Landry's sends letter to board of ARK Restaurants

theflyonthewall.com

"We are writing in response to the press release issued by Ark Restaurants on February 14, 2013 publicly announcing that the Board of Directors of the Company has rejected the proposal made by Landry's to acquire all the outstanding capital stock of Ark for $22.00 per share in cash in a negotiated transaction.  Ark's press release stated that the Board rejected our proposal because it was "inadequate, not compelling and not in the best interests of Ark Restaurants shareholders" and that "(i)n the board's judgment, Ark's shareholders will be better served by (the Company's) experienced management operating and growing (its) business." We are writing to you because, in our view, the Board's curt and uninformative response runs directly contrary to the best interests of Ark's shareholders.  Our extremely attractive acquisition proposal provides a significant premium, immediate liquidity and an opportunity to maximize value for all of Ark's shareholders.  In our view, the Board's flat rejection without evidence of serious consideration or explanation for its decision is not only puzzling but rather alarming. Our proposal represents a 22.0% premium to the closing price of the Company's common stock on February 6, 2013, the date of our proposal, a 28.5% premium to the average closing price over the 30 days preceding our proposal and a 31.5% premium to the average closing price over the 90 days preceding our proposal.  We fail to see any support for the Company's assertion that our proposal is inadequate.  In fact, we have no reason to believe the Board has given our proposal any meaningful consideration since in the three weeks it took to curtly reject our proposal, we have not at all been contacted by the Board to discuss it, despite our publicly stated willingness to do so."

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