The long-awaited sale of Burger King has fallen through after the fast-foodery’s owner, London-headquartered liqor group Diageo, rejected a reduced offer made by a private equity consortium.
BK, the world’s largest restaurant chain after McDonald’s, has been hard hit by stock market volatility – and even more by the apparently growing global aversion to cholesterol displayed by the eating-out public.
Diageo had warned earlier this month that the terms of the deal were being renegotiated [WAMN: 08-Nov-02] , and conceded Monday that the consortium (led by Texas Pacific Group) “would not be able to complete the acquisition of the Burger King Corporation on the terms previously agreed”.
Diageo moles have let it be known that the company might agree to retain a stake in BK as a short-term measure to stop the sale from collapsing. Such a move would replicate its $10.4bn sale of Pillsbury to General Mills a year ago.
Data sourced from: Financial Times; additional content by WARC staff