Restaurant Brands in takeover talks

Restaurant Brands said today it has been approached by an unnamed party about a possible takeover.

Shares in Restaurant Brands have been placed in a trading halt until a formal takeover notice is received, which should be within the next 24 hours.

Restaurant Brands said it had been approached by a third party which had indicated it would make a full takeover offer for all shares in the fast food company.

Restaurant Brands operates KFC, Pizza Hut and Starbucks in New Zealand and Pizza Hut in Victoria, Australia.

ABN Amro Craigs broker Matt Willis said the takeover play was a surprise, and he was unsure who was behind it.

The competitive fast food sector meant the stock was more of a yield play.

"It could be someone from here in New Zealand or someone from outside, you just don't know," Mr Willis told NZPA today.

"Could be that someone sees this as the right time to expand."

Mr Willis said Restaurant Brands' far-from-exciting sales figures over the past few years made the firm ripe for a takeover offer.

Last year, Restaurant Brands received a takeover offer, which was widely regarded as farcical, from King Win Laurel International at $1.50 per share.

The Takeovers Panel stepped in to terminate that offer, which it deemed did not comply with the Takeovers Code.

Shares in Restaurant Brands were trading at $1.28 before they were placed in a trading halt. The shares have ranged between $1.18 and $1.40 over the past 12 months.

- NZPA