Prime Restaurants Inc. says it has reached a settlement agreement to terminate an acquisition deal with suitor Cara Operations Ltd. and has signed a takeover deal with Fairfax Financial Holdings .
Prime, the company that owns East Side Mario's, Caseys and other restaurants, says all three companies have now signed an agreement that releases Prime of its obligations under the Cara deal.
The company asked a court last week to rule on Cara's claim that the Fairfax offer wasn't superior even though it was $12 million higher.
Cara had said Fairfax's $71-million offer failed to meet the definition of a “superior proposal” outlined in Cara's earlier $59-million friendly takeover agreement with Prime.
Cara took issue with Fairfax's terms that certain current senior executives of Prime would invest in the restaurant company after the takeover.
But that requirement stands under the deal signed with Fairfax, which has agreed to pay the termination fee for the agreement with Cara.