Icahn Offers to Buy Morton’s for $56 Million

Financier Carl Icahn offered to buy Morton’s Restaurant Group Inc. for $56 million in cash, trumping an earlier offer from Castle Harlan Inc. in the latest twist for control of the troubled restaurant chain.

Icahn, in a letter to Morton’s, offered $13.50 a share for the 65-restaurant chain. That is 90 cents more than Castle Harlan’s offer of $12.60 a share, or $52.6 million, that the firm accepted in March.

The counteroffer by the billionaire investor comes as at least one investor group, BFMA Holding Corp., said it may mount a challenge to Morton’s deal to be bought by New York-based Castle Harlan.

Last year, BFMA and Icahn teamed up to buy Morton’s for $28.25 a share, prompting the company to begin a search for buyers that resulted in the Castle Harlan offer. This time, however, Icahn said he would fund the offer himself.

Morton’s stock closed down 23 cents at $15 on the NYSE, or 19% higher than Castle Harlan’s offer price.