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Wendy's Rejects $1.4 Billion Takeover Proposal From Nelson Peltz's Trian
Wendy's rejects $1.4 billion takeover offer from Nelson Peltz's Trian-led investor group
Key points
- The Trian-led group offered $7.35 per share in cash on Oct. 28 to take Wendy's private.
- Wendy's adopted a one-year shareholder rights plan, or poison pill, as of Wednesday.
- Wendy's same-store sales declined for a seventh straight quarter, though earnings and revenue beat Wall Street expectations.
Why it matters. The rejection extends the long-running dispute between Peltz and the burger chain, and the poison pill is meant to stave off a hostile takeover, according to the company.
Wendy's on Thursday rejected a $1.4 billion takeover offer from a group led by Nelson Peltz's Trian Fund Management, which had offered $7.35 per share in cash on Oct. 28. The group also includes BlueFive Capital, Sixth Street Partners and Flynn Group, one of Wendy's largest franchisees. The company said the proposal "substantially undervalues" the chain and ignores gains from its turnaround strategy.
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Wendy's Rejects $1.4 Billion Takeover Proposal From Nelson Peltz's Trian
Wendy's has rejected an unsolicited $1.4 billion takeover proposal from Trian Partners, the activist investment firm led by Nelson Peltz. CBS News reported that the burger chain also turned down an offer from another group of investment firms. In its response, Wendy's said the proposal does not reflect the potential value of its turnaround strategy. The rejection leaves the company's independent plan in place, and Trian and the other bidders have not publicly indicated whether they will raise their offers.