Burger King & Texas Pacific Discuss Potential Leveraged Buyout <b></b>

Miami-Burger King Co. has held talks with Texas PacificGroup, a large investment concern, for a possible leveraged buyoutof the nation's second-largest fast-food chain, according toJohn Dasburg, Burger King's newly appointed president.

Dasburg offered few details, except to say that he has spokenwith the Fort Worth, Texas, firm and that any such deal would occurnext year. In an interview, he said he is also evaluating otherstrategic alternatives for the hamburger chain, including apreviously announced plan for an initial public offering of 20percent of the company. He said that offering could take place inthe first or second quarter of 2002.

Diageo PLC, parent of Burger King, has "agreed to aseparation and the form of separation must be determined,"Dasburg said. He added that he plans to issue his recommendation toDiageo and Burger King's franchisees after studying all theoptions.

Owen Blicksilver, a spokesman for Texas Pacific Group, which has$10 billion in assets under management, said he has no comment on apossible leveraged buyout, which was reported in the Miami Herald.-The Wall Street Journal