Boston Chicken to Acquire 2 Funds

Boston Chicken Inc. said it would acquire two funds that are invested in most of its franchisees for as much as $160.6 million in preferred shares, stock and cash, part of its plan to buy franchisee-owned restaurants. BC Equity Funding and Market Partners, which hold interests in 11 of Boston Chicken’s 14 franchisees, would receive $126.8 million of preferred stock, 3.5 million shares of common stock and $10 million in cash. The restaurant company also reported a fourth-quarter loss of $273.5 million, or $3.83 a share, contrasted with net income of $18.1 million, or 26 cents, a year earlier. The loss includes a previously announced $300-million charge for loan losses, writing down assets and charges incurred by franchisees. Shares rose 9 cents to close at $6.91 on Nasdaq.