Wendy's rejects $1.4 billion takeover proposal from Nelson Peltz’s Trian
Wendy's said the $1.4 billion takeover proposal does not reflect potential gains from the burger chain's turnaround strategy.
Wendy's on Thursday said that it is rejecting a $1.4 billion takeover offer from a group of investors led by Nelson Peltz's Trian Fund Management.
The group offered $7.35 per share in cash on Oct. 28 to take the struggling burger chain private . In addition to Trian, it included investment firms BlueFive Capital and Sixth Street Partners, plus Flynn Group, one of Wendy's largest franchisees.
In February, Wendy's board formed a committee of independent directors to assess any potential bid from Trian in response to a regulatory filing from the firm. The committee found that the proposal "substantially undervalues" Wendy's and does not reflect potential gains from the chain's ongoing turnaround strategy, the company said in a press release on Thursday.
The company also reported its third-quarter results on Thursday. Its same-stores declined for the seventh straight quarter. However, its quarterly earnings and revenue topped Wall Street's expectations.
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- CNBC5 Nov, 14:26Wendy's rejects $1.4 billion takeover proposal from Nelson Peltz’s Trian ↗Figures: 1.4 milliards
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