P. M. BRIEFING : Parent of Denny’s Chain Agrees to $1.65-Billion Coniston Buyout

TW Services Inc., parent of the 1,220-restaurant Denny’s chain, said today that it has agreed to a nearly $1.65-billion buyout by Coniston Partners, the investment firm whose takeover bid it had been resisting for nearly nine months.

TW’s management had little comment on the $34-per-share agreement, which suggested that the decision to accept Coniston’s sweetened offer was a reluctant one.

“The only comment is that management and their directors have worked hard to bring shareholders value and feel that shareholders are getting a fair price for our stock. That’s really all we can say,” said James Ryan, a TW spokesman.

The previous tender offer was $29 per share, or $1.4 billion. The new offer, scheduled to expire July 5, provides for Coniston to pay $34 in cash for 61% of TW’s 48.5 million outstanding shares. That would give Coniston, which currently owns 19% of TW’s stock, 80% of the company’s shares.

TW is also the parent of Spartan Food Systems Inc., the largest franchisee of Hardee’s fast-food restaurants. It also owns Canteen, which provides food services to corporations and clients including the National Park Service and Yankee Stadium.