Biglari Holdings Inc. News Release
Tuesday, February 08, 2011 08:20:07 AM
San Antonio, TX, February 8, 2011 /PRNewswire/ -- Biglari Holdings Inc. (NYSE: BH) today announced that its Board of Directors has approved a 1-for-15 reverse stock split. The Company will issue a release to announce the effective date of the reverse stock split. No fractional shares will be issued in connection with the reverse stock split. Shareholders will receive a cash payment in lieu of fractional shares based upon the average of the high and low trading prices on the effective date.
The rationale prompting the decision to initiate the reverse stock split is for the Company to continue to attract long-term owners whose purpose is to prosper in concert with the Company's progress. The reverse stock split does not change the Company's intrinsic value. At the upcoming shareholders meeting, a second class of stock will be presented for the approval of the shareholders. Subject to approval of the shareholders and the New York Stock Exchange, the economic value of the class B stock would be 1/50 of the current common stock.