Article: Takeover of Ground Round goes up in smoke

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 ...

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