McCormick & Schmick’s sued over buyout

By

SeafoodSource staff

Published on
November 28, 2011

McCormick & Schmick’s Seafood Restaurants was sued by a stockholder who contends the shares are undervalued in a USD 131.6 million takeover offer by Landry’s.

Ray Zahnow said in the suit that McCormick directors are duty-bound to get the best price for the stock, and shirked their obligations in agreeing to the $8.75-per-share deal. 

“The board has breached their fiduciary duties by agreeing to the proposed transaction for grossly inadequate consideration,” Zahnow said in a Delaware Chancery Court filing made public today in Wilmington, Del. 

McCormick of Portland, Ore., and Houston-based Landry’s announced the tender offer in a statement Nov. 22, saying the McCormick board determined the acquisition was fair and in the best interests of stockholders. 

Click here to read the rest of the story from Bloomberg News >

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