CNBC’s Faber: Burger King to be Sold for $24 a Share (BKC)


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Famous analyst David Faber announced on CNBC this morning that fast food giant Burger King Holdings, Inc. ( BKC ) will be taken private for $24 per share by private equity firm 3G Capital.

News initially broke yesterday that Burger King was mulling offers from multiple interested parties. The leading suitor was then said to be London-based private equity firm 3i Group Plc, but that report was quickly rebuffed by 3i officials.

Apparently, the correct buyer has now been identified as 3G Capital Management, which reportedly has only $50 million in assets under management. If true, that would almost certainly mean a leveraged buyout of BKC with the firm assuming a massive amount of debt.

The $24 per-share offer price represents a 27% upside to the stock's Wednesday closing price of $18.86, and a nearly 46% premium to BKC's Tuesday closing price of $16.45, before any takeover rumors had surfaced.

Burger King shares rose $4.13, or +24%, in premarket trading Thursday.

The Bottom Line
Shares of BKC had a 1.33% dividend yield at yesterday's closing price of $18.86.

Burger King Holdings, Inc. ( BKC ) is not recommended at this time, holding a DARS™ Rating of 3.2 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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This article appears in: Investing , Stocks

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