Red Robin news about a possible buyout of the burger chain has RRGB stock up on Thursday.
Red Robin (NASDAQ:RRGB) investor Vintage Capital Management sent a letter to the company’s Board of Directors on Thursday. In that letter, the investor says that it would be willing to acquire all outstanding shares of RRGB stock.
Vintage Capital Management says that it would be willing to pay $40 per share for RRGB stock. This would represent a premium of roughly 57% over the stock’s closing price on Wednesday.
The Red Robin news also has Vintage Capital Management putting the company’s Board of Directors to task over recent actions. This includes speaking out against it initiating a poison pill strategy earlier this month and delays to the ongoing CEO search.
Vintage Capital Management is calling for the Board of Directors to conduct a strategic review of the company’s options. If they don’t, it says it will hold a special meeting of shareholders in an attempt to remove all current members from the Board.
Vintage Capital Management isn’t a small investor in Red Robin either. The company currently holds 1.5 million shares of RRGB stock. This has its stake in the restaurant chain sitting at more than 11.5%. It also makes it the third-largest shareholder in the company.
RRGB stock was up 27% as of Thursday morning, but is down 4% since the start of the year.
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As of this writing, William White did not hold a position in any of the aforementioned securities.