Church’s Fried Chicken Receives Buyout Offer

Church’s Fried Chicken Inc. the nation’s second-largest fried chicken chain, says it has received a request for a meeting to discuss a possible acquisition by Sonic Industries Inc.

Richard F. Sherman, president and chief executive of Church’s, confirmed Thursday that Sonic has requested the negotiations. Sherman said his company will respond to the request at an unspecified date.

Sonic’s chief executive, C. Stephen Lynn, announced Wednesday that he would seek negotiations to acquire the San Antonio based company. Sonic is a privately held fast-food restaurant chain based in Oklahoma City, Okla.

The announcement boosted Church’s stock, which rose $2.25 a share to $13.75 in New York Stock Exchange trading Thursday. With 37.72 million shares outstanding, the total value of the company exceeds $518 million.

Clifford Hudson, vice president and general counsel at Sonic, said in the announcement that no meeting with Church’s has been set, and terms of a possible transaction have not been discussed.

In April, 1986, Sonic was purchased by management group that Lynn headed. He is now the company’s largest individual stockholder. Sonic, founded in 1959, owns 950 restaurants in 20 states.

Before joining Sonic, the 39-year-old Lynn was director of the distribution division for Kentucky Fried Chicken Corp., the nation’s largest fried chicken chain.

Considering Church’s extensive assets, the proposed acquisition would be a good one for Sonic, said John J. Rohs, an analyst with Wertheim & Co. in New York.

Third quarter figures showed thatChurch’s had 1,108 company-operated stores and 397 franchised stores. The company was on Business Week magazine’s 1986 list of the nation’s 1,000 most valuable companies.