Lone Star Steakhouse & Saloon, Inc. (NDAQ:STAR) revealed today in a schedule 13D/A filing with the SEC that they were able to obtain the confidentiality agreement they had been seeking in the past. They had been seeking this information in connection with their efforts to solicit additional bids for the company. The hedge fund, along with several other shareholders, have opposed the transaction ever since it was announced.

According to the filing:

"On December 5, 2006, Barington Capital Group, L.P. ("BCG") and the Company entered into a confidentiality agreement (the "Confidentiality Agreement") which will permit BCG and its financial advisor to obtain certain confidential or non-public information concerning the Company in order to evaluate its position with respect to the $27.35 per share consideration being offered to stockholders of the Company by affiliates of Lone Star Funds. The execution and delivery of the Confidentiality Agreement has been consented to by the affiliates of Lone Star Funds that are party to the merger agreement entered into with the Company." (Read More)

Barington noted in the past that they knew of at least five other potential buyers for the company who were interested in purchasing the company for more than the standing $27.10 offer. However, due to the company's reluctance to release financial information, they were unable to complete their due diligence. With this new confidentiality agreement in place, Barington may be able to provide this information to other potential bidders and perhaps solicit higher bids for the company. This makes STAR a stock worth watching closely as this situation unfolds.

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