It looks like I'm not the only one who wants to bite into what CKR has to offer. A private equity firm named THL Partners offered to buy them recently, and their only realistic competition for the bid is about to drop out:
Investor Nelson Peltz has reportedly lost interest in making a bid for CKE Restaurants , which is parent to the Hardees and Carls Jr. burger chains.
The New York Post reports that a source close to the process said that while Peltz whose investment firm owns Wendys/Arbys Group - had considered a making a bid to rival THL Partners, he has decided to pass after conducting due diligence.
CKR is still accepting competing bids until April 6, but this is probably the end of the acquisition dance. Thus, $11.05 is all CKR shareholders will get. They should feel grateful given the poor condition of CKR's balance sheet; negative retained earnings for three years straight is very bad even though the trend is back to positive territory thanks to positive contributions from net income. It will take a long time for CKR to get its share price back up over $20 at this rate, so a buyout is probably the least bad choice.
Nota bene: Anthony J. Alfidi holds no position in CKR at the time this post was published.
