Shares of Landry's Restaurants Inc. (NYSE:LNY) fell by nearly 12% this morning after CEO Tilman Fertitta declared he is seeking to buy the company at a lower price.

In a statement issued early this morning, Houston-based Landry's said Fertitta informed the company's board that the debt financing required to complete the pending transaction is in jeopardy at the current $21 share price.

He blamed the closure of the company's Kemah and Galveston properties due to Hurricane Ike, the instability in the credit markets, and the deterioration in the casual dining and gaming industries.

Fertitta is in talks with Jefferies & Co. about financing the deal for a much lower price.

Landry's and Fertitta have not yet come to an agreement on the terms of a new transaction, and are unsure that they will.

By midday, Landryʼs is at $11.55, down $1.56 from Monday's close. More than 825,000 shares had changed hands compared with an average three-month volume of 339,118 shares.

For detailed price information and news stories on Landry's, click LNY.
 

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