Restaurant Firm Denies It Rejected Bid

Restaurant Associates Industries denied Friday that its board had rejected a $110-million acquisition offer by Newport Beach businessman Anwar Soliman and said it may take legal action against Soliman for his statements on the company’s deliberations.

On Thursday, Soliman said that Restaurant Associates directors had rejected his offer by a 6-to-5 vote, and he accused the board of protecting management at shareholders’ expense. The company had no comment at the time.

Friday’s release by the New York-based restaurant and newsstand chain was the latest salvo in an increasingly acrimonious battle between Soliman and Restaurant Associates’ management, which previously made an $88-million bid to take the company private. The offer was later withdrawn.

Soliman, chairman of American Restaurant Group in Newport Beach, asked the board to reconsider his proposal because three directors who allegedly voted against his offer were members of the management team that had made the competing buyout bid.

Restaurant Associates, however, said the special committee “did not recommend acceptance of Soliman’s proposal,” but instead “was specifically instructed” to tell Soliman his offer “would be actively considered by the board of directors.”

Characterizing Soliman’s accusations as “incorrect and misleading,” the firm said it would pursue “appropriate legal remedies.”

Told of the release, Soliman said, “I still stick with my story,” and declined further comment.