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Wendy's rejects $1.4 billion takeover bid from Trian

Summarised from 2 outlets · Updated 5 Nov, 14:31 · Archive

Wendy's has rejected a $1.4 billion takeover offer from a group led by activist investor Nelson Peltz's Trian Fund Management.

Wendy's board of directors unanimously rejected the $1.4 billion hostile takeover bid on Thursday, saying it substantially undervalues the restaurant chain. The offer of $7.35 per share came from a group led by activist investor Nelson Peltz's Trian Fund Management, along with investment firms BlueFive Capital and Sixth Street Partners, plus Flynn Group, one of Wendy's largest franchisees.

Wendy's board chair Art Winkleblack said the company's confidence rests in CEO Bob Wright's track record of industry leadership and turnaround experience. The board formed an independent committee in February to assess the proposal after Trian's regulatory filing. Wendy's stock had traded at $7.75 before markets opened on Thursday and has slumped nearly 14 per cent over the last 12 months.

To defend against a hostile takeover, Wendy's adopted a shareholder rights plan, known as a poison pill, with a one-year duration as of Wednesday. The company said the investor group rejected an offer from Wendy's for a standstill agreement that would have paused additional share purchases. Trian declined to comment on Wendy's decision. This is the latest episode in a long-running saga between Peltz and Wendy's dating back more than two decades, including when his company Triarc owned the chain from 2008 before selling it to become a standalone company again.

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In this story: Wendy's · Nelson Peltz · Trian Fund Management · BlueFive Capital · Sixth Street Partners · Flynn Group · Bob Wright

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