Oct 26, 2009
Sardar Biglari buys 9.9% of Fremont Michigan InsuraCorp (FMMH)
After Steak N Shake (NYSE:SNS) reorganized as a holding company I knew that it was only a matter of time before he started to use the company’s free cash flow to target investments outside of restaurant operations. This is precisely what he did with Western Sizzlin. Today, we found out what he was up to– Steak N Shake filed a 13D saying that they had purchased 9.9% of Fremont Michigan InsuraCorp (OTC:FMMH).
Fremont is actually a company I’ve heard of before. Texas-based activist investor Harry Long has been lobbying for change there. Check out his whitepaper: Build Fremont (PDF).
I can’t be sure of whether Biglari agrees with Long, I know that the folks at Chanticleer have a different opinion of the company’s management. It will be an interesting company to watch though.
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