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Wendy's rejects $1.4bn buyout bid and adopts poison pill

Summarised from 2 outlets · Updated 5 Nov, 14:44 · Archive

Wendy's rejected a $1.4 billion buyout offer from investor Nelson Peltz, saying the bid undervalues the company.

Wendy's rejected a $1.4 billion buyout offer from activist investor Nelson Peltz on Thursday, saying the bid was too low and substantially undervalued the company. The chain has been struggling with high beef prices and aging stores. Peltz argued that the fast-food landscape had become increasingly challenging, with consumers under pressure, intensifying competition and persistent inflation, and said his offer was the best path forward for shareholders.

Wendy's CEO Bob Wright, who joined the company in May from Potbelly, countered that Wendy's has a turnaround plan in place already producing good results. 'We're confident that we have the right strategy, execution and resources to restore Wendy's to its full potential and drive meaningful shareholder value,' Wright said. Shares rose more than 2 per cent Thursday as the company reported better-than-expected third-quarter performance.

Wendy's adopted a shareholders' rights plan, known as a 'poison pill', intended to prevent a hostile takeover. The plan grants all shareholders except the hostile bidder the right to purchase discounted shares and automatically triggers if a person or group owns 15 per cent or more of shares. Peltz's Trian Fund Management and other partners hold 16.3 per cent of the company. The plan will stay in place for one year.

Wendy's rejects $1.4bn buyout bid and adopts poison pill
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In this story: Wendy's · Nelson Peltz · Trian Fund Management · Bob Wright

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