020707 At Least 4 Investor Groups Bid for Burger KingJuly 3, 2002The array of suitors placing orders for Burger King narrowed to as few as four teams as the auction for the fast-food chain reached the final round, Wednesday's Wall Street Journal reported. While bids were still coming in, at least three consortia of private-equity firms and restaurateur Triarc Companies Inc. were planning to place bids ranging between $2 billion and $2.5 billion for Burger King, said people familiar with the situation. In addition to Triarc, which owns Arby's Inc., the roast-beef restaurant chain, a group made up of Texas Pacific Group, of San Francisco , Goldman Sachs Group's private- equity arm and Bain Capital of Boston were expected to bid, these people say. A joint bid also was expected from Boston firm Thomas H. Lee Partners, Blackstone Group, of New York , and Madison Dearborn Partners, of Chicago , these people say. Madison Dearborn owns Carrols Holding Corp., the parent of Carrols Corp., among the largest Burger King franchisees outside of the company, with 360 stores. It was unclear if Madison would break from the group and make a solo bid. Hicks, Muse, Tate & Furst, of Dallas , and global private-equity firm Apax Partners Inc. also were planning to submit a joint bid. Representatives of the firms declined to comment or couldn't be reached to comment. Burger King declined to comment. Britain's Diageo (NYSE: DEO - News) PLC officially put the nation's second-largest fast- food chain on the block in April. It had hoped to sell Burger King for at least $2.3 billion. However, the need for improvements at a significant number of franchises is driving down the price buyers are willing to pay. Three private-equity firms have dropped out of the bidding, including New York firms Clayton Dubilier & Rice Inc., Apollo Group (NasdaqNM: APOL - News) and Cypress Group.
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