Landry's recommends CEO's buyout offer to shareholders

(Reuters) - Landry's Restaurants (LNY.N) board recommended shareholders vote for the buyout offer by its chief executive Tilman Fertitta of $1.3 billion, sending its shares up by as much as 9 percent.

The restaurant and casino operator said Fertitta had no part in the board's recommendation, according to a preliminary proxy filed with the Securities and Exchange Commission.

The company said there have been no other bidders. Cowen & Co is advising the company's board on the deal.

Fertitta's lawyer had said in June that the offer price of $21 a share would not be increased.

The offer price represents a premium of about 50 percent to Landry's Wednesday close of $14.05.

The 50-year-old Fertitta, whose cousins Frank and Lorenzo Fertitta took Las Vegas casino operator Station Casinos private in a management-led buyout last year, had in January offered to buy Landry's for $23.50 a share.

Landry's operates the iconic Golden Nugget Hotel & Casino in Las Vegas and several casual-dining outlets that compete with Texas Roadhouse (TXRH.O), CBRL Group Inc (CBRL.O), and larger rivals DineEquity Inc (DIN.N), Darden Restaurants (DRI.N) and others.

Landry's shares, which touched a high of $15.39 after the news, pared some of their gains and were up 85 cents at $14.90 in late afternoon trade on the New York Stock Exchange.

(Reporting by Shivani Singh in Bangalore; Editing by Himani Sarkar and Julie Vorman)