Tilman J. Fertitta Tilman J. Fertitta via Reuters/Mario Anzuoni

Exclusive: Landry's and Jefferies CEOs to launch acquisition company - sources Featured

Tilman Fertitta, the Texas billionaire CEO of Landry’s Inc and Richard Handler, the CEO of investment bank Jefferies Group LLC and its parent Leucadia National Corp (LUK.N), are launching a special purpose acquisition company (SPAC) through their companies, people familiar with the matter said.

 

The SPAC will be called Landcadia, a combination of the names Landry's and Leucadia, and plans to raise as much as $300 million in an initial public offering (IPO), the people said.

SPACs, also known as blank-check acquisition companies, have no assets but use IPO proceeds, together with bank financing, to buy other companies and boost their value through operational improvements.

Landcadia will use the money it raises to fund a corporate acquisition in the hospitality, gaming or restaurants industries, the sources said. Jefferies and Deutsche Bank AG (DBKGn.DE) are working on the IPO of Landcadia, which has already been registered confidentially with the U.S. Securities and Exchange Commission, the people added.

The sources asked not to be identified because Landcadia is still a confidential project. Deutsche Bank, Jefferies, Leucadia and Landry's declined to comment.

This year has seen a string of high-profile executives seeking to launch SPACs. In February, oil and gas titan Mark Papa raised $450 million in a SPAC IPO. Last week, former Blackstone Group LP private equity dealmaker Chinh Chu and Fidelity National Financial (FNF.N) Chairman William Foley unveiled a SPAC that could raise up to $1.1 billion, making it the largest on record.

Handler and Fertitta have a longstanding friendship. According to a Forbes article from 2012, Jefferies helped finance Landry’s debt in 2007. Fertitta's Instagram account includes several recent photos of the two men, including one of them riding the subway during New York City rush hour and another having dinner with soccer star Pelé at Handler's New York City penthouse.

Handler has been CEO of Jefferies for 15 years, at times serving as one of the highest paid executives on Wall Street. Last year, Handler turned down a bonus after Jefferies had a lackluster 2014.

Fertitta operates a portfolio of dining, hospitality, entertainment and gaming concepts through Landry's, including The Golden Nugget Hotel and Casinos and McCormick & Schmick's Seafood & Steaks. He also owns his own private hangar in Houston, Texas's Hobby Airport. His reality TV show, Billion Dollar Buyer, premiered last month.

The two CEOs' "bromance" was captured on video in 2014 when Handler challenged Fertitta to take the "ice bucket" challenge to raise funds to fight amyotrophic lateral sclerosis, after doing so himself.

 

 

 

(Reporting by Lauren Hirsch, Mike Stone and Olivia Oran in New York; editing by Andrew Hay)

Leave a comment

Make sure you enter all the required information, indicated by an asterisk (*). HTML code is not allowed.

back to top

iScope

Boldstart Founder Launches Hyperledger Fabric's First Blockchain Accelerator

The founder of VC firm Boldstart Ventures is launching the first accelerator dedicated exclusively to startups building on the Hyperledger Fabric blockchain.

CNN launches daily news show on Snapchat

CNN on Monday began streaming "The Update," a daily show on Snapchat featuring at least five news stories each episode from reporters and bureaus around the world, to attract younger viewers.

Quora now launches retargeting for advertisers

Quora’s newly launched ads platform now supports retargeting ads on the question-and-answer network.

Facebook faces scare that teens are going to Snapchat and Instagram. Again.

 Now playing on the internet: the episode in which everyone freaks out that young people are abandoning Facebook in favor of hot new social media services like Snap and Instagram.

IBM partners with Walmart, Unilever, Nestlé, and other food giants, to apply blockchain tech to food supply chains

They will be aiming to use blockchains to maintain secure digital records and improve the traceability of their foodstuffs

Blockchain can make social networks more private — and profitable for you

Fact: You’re going to spend a total of five years of your life on social media. But- is blockchain answer to everything?

The HuffPost’s tabloid-style homepage is paying dividends

The move was designed to deliver what Polgreen described as “a visceral snapshot of the day.”

Dashbot’s codeless Twitter Integration is now live!

Integrate your DM bot without code and in 10 seconds.

50 Bitcoin Exchanges Have Filed with the Japanese Financial Authority

In April, the Japanese government amended its fund settlement law to recognize bitcoin as a legal means of payment

Billionaire Calvin Ayre Acquires Crypto Media Outlet Coingeek

  The plan is for Calvinayre.com to continue to cover Bitcoin news as it relates to the gaming industry

Asus Debuts Specialized Motherboard for Cryptocurrency Miners

"Cryptocurrency and blockchain are here to stay"

Chatbot That Helps Users Appeal Parking Tickets Comes To U.S.

A chatbot called DoNotPay that helps users appeal parking tickets for free in the U.K. is now available in the United States.

How TD Ameritrade tackles security in Facebook Messenger chatbot

Chatbot is designed to answer faster than a human could.

How Blockchain Is Monetizing User’s Experience and Skills

Generating value is the key concept sustaining the explosion of Blockchain offerings in 2017.

Bezos on Amazon’s AI and Machine Learning Strategy

[It's all about] enabling other organizations to leverage the game-changer that is machine learning.

Mongolia's Hottest New Social App Is All About Horses

Although cowboy culture is mostly nostalgia in the United States these days, many rural Mongolians still rely on their horses in daily life. In Mongolia, horsemanship is one of the most celebrated aspects of their culture, even on social media. "If we...

Startups could be key to fixing tech's diversity problem

Silicon Valley companies are learning a hard lesson: They can't escape their attitude problems.

Android Oreo released by Google

Google has released the latest version of its Android mobile operating system (OS), which will be named after Oreo chocolate biscuits.

How RBC is using a blockchain to overhaul its loyalty program

“We see loyalty as a great use case for blockchain to allow us to provide customers more real-time access to rewards points to provide an almost Starbucks-like experience.”

Why finance brands are so hot on content marketing

Content is one way to make people return to their site to see new updates, buy new products and invest more money.

Reddit now allows users to upload videos

Videos are coming to Reddit, thanks to a new feature that allows users to upload video clips directly to the service.

Sharp sues Hisense over a foreign “gag order”

Sharp, a Japanese electronics manufacturer, has filed a lawsuit challenging a foreign gag order that company lawyers say prevents Sharp from talking about its own brand.

How A Police Body Camera Company Is Becoming An Artificial Intelligence Company

Like most technology companies today, Axon’s goal is to collect data; the free body camera trial is just another avenue to generate and collect more of it.

Mic Lays Off Dozens Just a Week After Promising Not To

A number of online outlets, including Mashable, Vice, and MTV News, have recently slashed their writing staffs to focus on producing visual content

Kit Kat accused of copying Atari game

Kit Kat's maker Nestle has been accused of copying Breakout, the 1970s computer game, in a marketing campaign.

YouTube TV expands to 14 new markets

YouTube is broadening access to live TV streaming as younger viewers increasingly watch shows online and traditional broadcast networks grapple with aging demographics among viewers.

Hyundai looks to build a >300-mile-range electric car

More carmakers are looking toward electric vehicles as fuel cell falters

Why Bancor Wants To Become The YouTube Of Cryptocurrency

If Bancor overcomes the initial scandals (it shortchanges its users' by rounding token values) Bancor could reshape the cryptocurrency marketplace as we know it.

The best of Siri: 11 funny responses from the iPhone's virtual assistant

Since its launch in 2011, Siri has become increasingly intelligent, and can now hold basic two-way conversations with users.

How Yogscast built a media empire

The newer generation doesn’t want to be told how to do things, they want to see it.

Skype’s new look arrives on the desktop in preview form

The chat-focused update comes with new features for messaging and calls.

Subscribe to the Business Brief Newsletter

Get our complimentary briefing, featuring news & analysis of the business trends and practices.
Terms and Conditions