Lone Star Steakhouse & Saloon, Inc. (NDAQ:STAR) said today that it received a higher buyout offer from Dallas-based private equity firm Lone Star Funds. The PE firm raised its bid from $27.10 to $27.35, which represents a 1% rise in the offer. The Company also said it pushed back the meeting of shareholders to vote on the proposed merger from November 30th to December 12th.

There are several large shareholders that plan to vote against the merger, including Barington Capital, Deutsche Bank and Millenco LP, all of whom believe the offer significantly undervalues the restaurant chain. Although these funds have yet to comment, it is unlikely that the 1% raise will affect their sentiment. In a previous article, we also noted that Barington Capital said it has identified several other parties that may be interested in purchasing the company at a price greater than $27.10 per share, contingent upon their ability to review non-public information. However, the company said it still plans to support the merger agreement with Lone Star Funds. If these funds succeed in preventing the sale at this price, it could mean an increased bid or opportunity for the company to receive other bids. This makes STAR a stock worth keeping an eye on over the next few months.

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