Shares of fast food chain Burger King (BKC) opened 23.7% higher at $23.34 Thursday after closing at $18.86, or 14.65% higher, Wednesday. The stock originally got a boost from rumors of a possible deal to sell the company.
The $24 a share price represents a 46% premium to BK's closing price on Aug. 31 of $16.45, just before the rumors began. The transaction is expected to close in the fourth quarter of this calendar year. Burger King can still solicit superior proposals until Oct. 12, 2010.
Affiliates of TPG Capital LP, Goldman Sachs Capital Partners and Bain Capital Investors, which own approximately 31% of BK, have agreed to tender their shares into the offer.
Burger King has lagged behind larger rival McDonald's (MCD) and other fast food chains during the recession. Its sales have slowed for two straight years, hit by the high level of unemployment and the fragile economy. Last week, the company forecast weak demand during its new fiscal year because of the continued economic challenges.
Miami-based Burger King operates more than 12,150 restaurants in all 50 states and in 75 countries and U.S. territories worldwide.