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Red Robin shareholder makes $519M offer to buy restaurant chain

Ed Sealover
Red Robin shareholder makes $519M offer to buy restaurant chain

Red Robin Gourmet Burgers' third-largest shareholder officially offered to buy the company for nearly $519 million on Thursday, following up on a move it warned it would make last month if the Greenwood Village-headquartered restaurant chain did not undertake a review of all strategic options, including the potential sale of the company. Vintage Capital Management LLC of Orlando, which owns 11.6% of the full-service chain's common stock, formally presented the request in a letter to board chairwoman and interim CEO Pattye Moore. As previously indicated, it offered to pay $40 per share of outstanding stock — a 32.3% premium over the $30.24 at which Red Robin (Nasdaq: RRGB) shares were trading at the end of the day Wednesday, but not as big a jump as when it made its initial unofficial offer on June 12 and the share price was $25.46.