Topic: Growth Stocks

Stock Pickers Digest Hotline – Friday, August 29, 2014

Article Excerpt

TIM HORTONS INC., $87.40, symbol THI on Toronto, jumped 27% this week after agreeing to a friendly takeover offer from Miami-based Burger King Worldwide (New York symbol BKW). The combined firm would be the world’s third-largest fast-food operator, after McDonald’s and Yum Brands, with annual sales of $23 billion U.S. and 18,000 restaurants in over 100 countries. Canada will supply 67% of the merged company’s revenue, followed by the U.S. (20%) and other countries (13%). The Tim Hortons and Burger King chains will operate independently but will probably share some back office and distribution networks. Tim Hortons can also use Burger King’s expertise to expand in the U.S. and other countries. Under the deal, Tim Hortons shareholders can opt to receive $88.50 a share in cash, or 3.0879 Burger King shares worth a total of $107.60. (All amounts in Canadian dollars.) However, Burger King plans to limit the overall cash payout, so most Tim Hortons investors will receive $65.50 in cash plus 0.8025 of…