First Fidelity, CKE gets Rally’s stock in settlement – CKE Restaurants and First Fidelity Financial acquire 4.9% and 15% respectively from Giant Group Ltd – Brief Article
BEVERLY HILLS, CALIF. — First Fidelity Financial of Beverly Hills, Calif., acquired a 4.9-percent stake in Rally’s Hamburgers Inc., and CKE Restaurants acquired a 15-percent stake in Rally’s from Giant Group Ltd. for cash as part of the settlement of law-suits between First Fidelity and Giant.
Giant, Rally’s largest shareholder, will acquire some 705,489 shares of its own stock from First Fidelity for cash. Also William Foley II, chairman and chief executive of both First Fidelity and CKE’s Carl’s Jr. chain, will be named to Rally’s board, along with C. Thomas Thompson, president of Carl’s Jr. Foley and Giant had sued each other over stock purchases previously made by Fidelity.
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