Billionaire investor Nelson Peltz says his company Triarc (NYSE: TRY) would be be willing to buy Wendy's (NYSE: WEN). In a letter to the chairman of Wendy's also filed with the SEC, Peltz wrote that:
We believe that Triarc is a natural, strategic buyer for the company and should be encouraged to participate in the sale process the Special Committee is conducting. You should be aware that Triarc presently anticipates that it would be prepared to offer consideration in the range of $37.00 to $41.00 per share to Wendy's shareholders. This represents a premium of 10% to 22% over last Friday's closing price for Wendy's stock and a premium of 15% to 28% over the closing price of Wendy's stock on April 24, 2007, the day before the company announced the formation of the Special Committee.
Peltz is unhappy with certain clauses of a confidentiality agreement that Wendy's management wants him to enter into before they begin negotiations on a possible sale.
Shares of Wendy's are up 7.60% on the news after-hours to $36.25, slightly below the lower end of the range that Peltz suggested for his offer.
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Reader Comments (Page 1 of 1)
7-31-2007 @ 7:25AM
Michael Schneider said...
Just this weekend, Andrew Leckey posted an article about Wendy's which indicated that Nelson Peltz was a likely buyer-- synopsis of the item and a profile of Nelson Peltz and an item about Warren Buffett , Nelson Peltz and Carl Icahn buying into Kraft are all available with other items on billionaire investors in the Billionaire Watch (yellow label, top) at http://www.Barrelomoney.com.
10-27-2007 @ 6:55PM
Dan said...
I think it is interesting that Wendy's has said that its board is evaluating three strategic options to improve Wendy’s performance: evolving the current strategic plan, changing its capital structure or a possible sale, merger or combination and the only one getting any air time is a sale to Nelson Peltz. How about the current management team that has been working hard on this turnaround for only 9 months and already showing great strides. Kerrii Anderson and her team have delivered 16 straight months of same store growth, appreciation in stock price, higher profits and positive earnings growth, and they are moving ahead with the second phase of their plan that makes a lot of sense. If the turnaround is already happening, it doesn't seem like killing that momentum is in the best interest of shareholders.