Red Robin news for Friday concerning a buyout offer has RRGB stock heading higher.
Red Robin (NASDAQ:RRGB) has received an unsolicited offer from investor Vintage Capital that would having it buying up the rest of the company’s stock for $40 per share in cash. This represents a roughly 31% premium over the stock’s closing price on Thursday. It’s also a 57% premium over the stock’s unaffected price from June 12, 2019.
This is far from the first time that Vintage Capital has made such an offer for Red Robin. It did the same thing early in June. However, at that time the investor was taking a much more hostile stance in its negotiations.
That previous Red Robin news still included the offer of $40 per share for RRGB stock. However, it was also critical of the company’s Board of Directors. This includes chastising them for adopting a poison pill strategy. The investor also wasn’t happy with the slow search for a replacement CEO.
Vintage Capital sounds much less threatening in its most recent letter to Red Robin.
“We are pleased we have begun a constructive dialogue. We hope that this dialogue continues, as we are confident that our Proposal is in the best interest of the Company’s stockholders.”
Despite this, the company says it is still willing to call a meeting of shareholders in an effort to oust the Red Robin Board of Directors if the group doesn’t engage with it in this matter.
RRGB stock was up 9% as of noon Friday.
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As of this writing, William White did not hold a position in any of the aforementioned securities.