Lone Star Steakhouse & Saloon is the latest company to come under fire from activist hedge fund Barington Capital Group which is unhappy about an offer from a private equity house that it believes undervalues the US restaurant chain.

Lone Star Funds recently agreed to buy the steakhouse chain for $600m (€468m), or $27.10 per share in cash. Barington said the deal fails to provide adequate value to the company's stockholders. In a filing with the Securities and Exchange Commission, Barington states the restaurant's stock has traded higher than the transaction price less than three months prior to the date the deal was announced.