Burger King (BKC) in Possible Discussion About a Buyout

September 1, 2010, 3:16 PM

Burger King Holdings Inc (NYSE:BKC) is in talks regarding a buyout with investment firm 3G Capital according to the The New York Times on Wednesday. The shares were up 15%, the most in more than four years.

The New York Times reported the talks with New York-based 3G earlier today.

Burger King, second hamburger chain to McDonalds (NYSE: MCD), shares had posted a year-to-date loss of nearly 13 percent as of Tuesday’s market close, while McDonald’s shares increased 17 percent in the same period.

Janney Capital Markets’ analyst Mark Kalinowski said in a statement  “We would view this as an excellent opportunity for investors who have been in the shares to cut their losses (or take some modest gains, depending on when shares were bought),” “At this point in Burger King’s history, it may be better off out of the public eye to solve some of the big challenges it faces.”

Neither Burger King or 3G Capital will confirm or deny a buyout.

Burger King shares were up $2.41, or 15 percent, the highest since 2006.

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