Forbes
Burger King may go private according to the Wall Street Journal. Stock jumps 9%.
According to a Wall Street Journal report Wednesday, fast food giant Burger King Holdings ( BKC - news - people ), Inc. (BKC) is mulling a sale to one of several private equity firms interested in the famous burger retailer.
Burger King was taken public in 2006, following a previous buyout by a private equity conglomerate that included TPG, Bain Capital and Goldman Sachs ( GS - news - people ). That group bought BKC from British beverage company Diageo ( DEO - news - people ) in 2002 for around $1.5 billion.
The company now has a market cap of around $2.24 billion, and reports indicate one interested suitor is private equity firm 3i Group Plc, which is based in London.
Burger King shares rose 8.8% in morning trading Wednesday.
The Bottom Line
We have avoided shares of BKC since our early June 2008 coverage began, when the shares were trading at $28.25. The company has a dividend yield of 1.52%, based on last night’s closing stock price of $16.45. The stock has technical support in the $14-$16 price area. If the shares can firm up, we see overhead resistance around the $19-$20 price level. We would remain on the sidelines for now.
According to a Wall Street Journal report Wednesday, fast food giant Burger King Holdings ( BKC - news - people ), Inc. (BKC) is mulling a sale to one of several private equity firms interested in the famous burger retailer.
Burger King was taken public in 2006, following a previous buyout by a private equity conglomerate that included TPG, Bain Capital and Goldman Sachs ( GS - news - people ). That group bought BKC from British beverage company Diageo ( DEO - news - people ) in 2002 for around $1.5 billion.
The company now has a market cap of around $2.24 billion, and reports indicate one interested suitor is private equity firm 3i Group Plc, which is based in London.
Burger King shares rose 8.8% in morning trading Wednesday.
The Bottom Line
We have avoided shares of BKC since our early June 2008 coverage began, when the shares were trading at $28.25. The company has a dividend yield of 1.52%, based on last night’s closing stock price of $16.45. The stock has technical support in the $14-$16 price area. If the shares can firm up, we see overhead resistance around the $19-$20 price level. We would remain on the sidelines for now.
