Two American investors in The Restaurant Group have called on the company to pull out of the £559m acquisition of Wagamama, claiming that it is “overly risky and expensive”.
The Chicago-based Grizzly Rock Capital and Vivaldi Asset Management, which speak for a combined 3.9m shares or 1.9% of the Frankie & Benny’s and Chiquito operator, urged its management to pay a £6m break fee and walk away.
Kyle Mowery, who represents both Grizzly Rock and Vivaldi, said that the funds “unequivocally oppose the proposed Wagamama transaction . . . Management grossly miscalculated their cost of capital and shareholder willingness to participate in a transaction.”
