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Article: Takeover of Ground Round goes up in smoke
- Article from:
- The Boston Globe (Boston, MA)
- Article date:
- January 14, 1995
- Author:
CopyrightCopyright 1995 The Boston Globe. Provided by ProQuest LLC. (Hide copyright information)
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Ground Round Restaurants Inc. said yesterday that plans for a
$160 million takeover of the chain fell through because the buyer
could not obtain financing.
The news sent Braintree-based Ground Round's shares down 1 1/4, or
17.8 percent, to close at 5 3/4 in heavy Nasdaq trading. That is
just 1/4 point above its 52-week low of 5 1/2, reached in April 1994.
GRR Acquisition Corp. had offered to buy the chain in August for
$9 a share. In November, the companies hinted the deal might not
come off because of financing problems. The management buyout had
been led by 399 Ventures Inc., a venture capital affiliate of
Citicorp.
The company said that changes in the high-yield credit market
"prevent ...