(Removes reference to Steak 'n Shake and Western Sizzlin
restaurants in paragraph 2)
Dec 24 Cracker Barrel Old Country Store Inc's
top shareholder, Sardar Biglari, said he was
considering a bid for the restaurant chain, the activist
investor's latest attempt to take control of the company.
Sardar Biglari, through his investment firm Biglari Holdings
, has been pushing for change at Cracker Barrel for more
than two years, saying the company's "earning power" was far too
low under the current management.
Biglari Holdings, which holds a 19.9 percent stake in
Cracker Barrel, said on Tuesday it was in talks with an
investment bank to finance a deal.
Cracker Barrel's shares rose 1 percent in early trading.
Sardar Biglari's latest attempt in November to win board
seats was rebuffed by Cracker Barrel's shareholders at the
annual meeting. They also rejected his proposal for a $20 per
share special dividend.
Biglari last week sent a letter to the Cracker Barrel's
board, urging a review of options including a sale.(r.reuters.com/sen55v)
In Tuesday's letter, Biglari said he was willing to lead a
sale process by submitting a bid, but did not give details.
He also sought support for his efforts to seek an amendment
to Tennessee's tough anti-takeover laws, which discourage
A Cracker Barrel spokesperson declined to comment.
Biglari also said he would consider selling his stake if the
company began a share repurchase.
If the Cracker Barrel board does not agree to his terms, the
investor said he would call for a special meeting of
shareholders to push for the sale.
Cracker Barrel shares were trading up less than one percent
at $111 on the Nasdaq on Friday. They have risen 72 percent this
year to their Monday close, outpacing the broader S&P 500 index
which is up only 28 percent.
Biglari Holdings shares were unchanged at $511.03 on the New
York Stock Exchange.
(Reporting by Aditi Shrivastava and Siddharth Cavale; Editing
by Sriraj Kalluvila)