New problem hindering Rainforest Cafe sale

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Friday, Oct. 20, 2000 | 11:09 a.m.

MINNEAPOLIS -- The Wisconsin Investment Board, Rainforest Cafe Inc.'s largest shareholder, has urged management to waive a poison pill that prevents the board from consulting with other potential bidders to buy the troubled theme-restaurant company.

Landry's Seafood Restaurants, based in Houston, has offered to buy Minneapolis-based Rainforest, for $3.25 a share, or $73.1 million, a deal the Wisconsin board opposes. Landry's offer is set to expire next week.

The Wisconsin board, which manages the state's pension fund, wants to consult with possible bidders.

In a letter, the investment board accused Rainforest's board of being "in complete disregard" of its fiduciary duties. It also said the directors are being derelict in refusing its request for a 30-day extension of Landry's offer so it might pursue alternatives to it.

Orlando, Fla.-based Central Florida Investments said earlier this week it has assembled unidentified investors willing to counter-bid for Rainforest, which has a Las Vegas restaurant at the MGM Grand hotel-casino.