Burger King to return to private ownership
Hamburger chain is takeover target for 3G Capital.
By New Statesman Published 02 September 2010
US hamburger chain Burger King is in talks with investment firm 3G Capital for a private takeover after four years as a listed company, reports The New York Times.
The fast-food chain's shares rose nearly 15 per cent on Wednesday, after reports that it was likely to return to private hands.
The Miami-based Burger King was floated by its private-equity owners TPG, Bain Capital and Goldman Sachs in 2006 at a share price of $17. But it has been struggling since the recession in 2008.
The slow rate of economic recovery in the US and the implementation of austerity programmes across several European nations has also affected the chain. It underperformed rival businesses such as McDonalds, posting a year-to-date loss of about 13 per cent.
Analysts are in agreement that taking the company off the public markets would be a suitable move.
British private equity firm 3i Group - which was touted as a possible buyer - denied that it was planning to buy the chain.
"We can confirm that we are not in discussions with Burger King," said a 3i spokeswoman.
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