Burger King Sued by Shareholder Over $3.3 Billion Buyout by 3G Capital

Burger King Holdings Inc., the U.S. hamburger chain being bought by investment firm 3G Capital for $3.3 billion, was sued by a stockholder contending the deal undervalues the shares.

Burger King, the second-largest U.S. purveyor of burgers after McDonald’s Corp., said Sept. 2 it would be bought by 3G, backed by Brazilian investors, for $24 a share.

The price “is unfair and grossly inadequate because, among other things, the intrinsic value of Burger King is materially in excess of the amount offered,” stockholder Roberto Queiroz said in a lawsuit made public today in Delaware Chancery Court.

Under the agreement, Miami-based Burger King, with $2.5 billion in sales for the year ended in June, will be able to solicit higher bids through Oct. 12. The sale is the biggest restaurant acquisition in at least a decade.

Officials of Burger King didn’t immediately return an e- mail message seeking comment on the lawsuit.

The company represents more than 12,000 restaurants in the U.S. and 76 countries and territories, including the Americas, Asia, Europe, the Middle East, Africa, Australia and New Zealand.

Burger King was unchanged at $23.67 at 9:56 a.m. in New York Stock Exchange composite trading.

The case is Roberto Queiroz v. Burger King Holdings Inc., CA5808, Delaware Chancery Court (Wilmington).

To contact the reporter on this story: Phil Milford in Wilmington, Delaware, at pmilford@bloomberg.net.

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