Planet Hollywood to buy Buca's

All,

This from this mornings Minneapolis newspaper...



Planet Hollywood to buy Buca
The Minneapolis-based Italian restaurant chain has been struggling.

Star Tribune

Last update: August 5, 2008 - 2:28 PM

Buca Inc., the Minneapolis-based operator of the struggling Buca di Beppo restaurant chain, agreed Tuesday to be acquired by Planet Hollywood International Inc. for about $9.7 million.

Planet Hollywood, the privately held owner of the Hollywood-themed restaurant chain, agreed to pay 45 cents a share, Buca said in a prepared statement Tuesday. That's a a 41 percent premium over Buca's closing price Monday of 32 cents.

Planet Hollywood also agreed to lend Buca $3.5 million, Buca said.

"We believe that this transaction provides a bright future for our unique brand and for our many employees nationwide," Buca CEO John Bettin said in the statement.

Like many other restaurant chains, Buca has been struggling amid an economic downturn. In the first quarter, the company reported a net loss of $4.2 million as same-store sales declined 2.5 percent.

Last year, the company settled a lawsuit with the Securities and Exchange Commission that alleged a complicated scheme devised by former executives at the restaurant chain that had funneled money out of the company. Former CEO Joseph Micatrotto was sentenced to 13 months in prison for his role in the scheme.

On Tuesday afternoon, Buca shares were trading at 41 cents a share, up 9 cents.

Thanks Steve , thats interesting news. Many moons ago I worked at bucca. I remember hearing of the personal house in Italy talk. I also recall stock prices much much higher. I suppose the gluttony of it all has come to roost. I hope that the planet hollywood transaction saves the jobs of the good people that work for them.

Geez, $9.7 million?! They must have also assumed some debt as well. That's barely enough money to acquire a couple of decent units, much less an entire brand (such as it is).

Maybe they should auction off that bust of the pope...not God's rotweiller, the other one.

Thanks Steve , thats interesting news. Many moons ago I worked at bucca. I remember hearing of the personal house in Italy talk. I also recall stock prices much much higher. I suppose the gluttony of it all has come to roost. I hope that the planet hollywood transaction saves the jobs of the good people that work for them.

Hey Joe..do I know you?? (PM me). I remember when Buca went public @ $18 a share....WOW!!