Benihana shares climb on buyout report

CHICAGO

Shares of restaurant chain Benihana Inc. climbed Tuesday amid speculation that a financier submitted a sweetened buyout offer to the company.

Citing anonymous people, the New York Post reported Tuesday that Russell Glass, who leads RDG Capital, increased his bid for the Asian-themed chain to $8 per share, up from his earlier offer of $7 per share.

CL King analyst Michael W. Gallo told investors in a research note that the $8 offer may still be low "but is moving in the right direction."

Messages left at a listing for RDG Capital and at Benihana weren't immediately returned Tuesday.

Benihana has struggled with rising costs and falling sales as the recession kept diners away from its tables. Earlier this month, announced the immediate departure of its chief financial officer and chief administrative officer, who was also the restaurant chain's president.

In its third quarter, the company said sales in restaurants open at least a year slipped 3.4 percent. Final results for the quarter haven't been released yet, but that's better than the 9.9 percent decline recorded in the second quarter.

Benihana is based in Miami.

Its shares rose 89 cents, or 15.4 percent, to $6.68 in midday trading. Its shares have a 52-week range of $2.43 to $8.38.