Sainteur · Highly Regarded Market News

Equities

Nelson Peltz's Trian offers to buy Wendy's for $1.4 billion, the Journal reports

The report comes after Reuters said in August that Trian, a longtime holder of about 16% of the burger chain, had no plans to bid at the time.

By ·

Why it matters: A reported $1.4 billion offer from a holder of about 16% of Wendy's raises the prospect of a takeover of the burger chain.

For information only, not investment advice. Prices delayed.

Tickers: WEN

Nelson Peltz's Trian Fund Management has offered to buy Wendy's ($WEN) for $1.4 billion, the Wall Street Journal reported Wednesday, citing people familiar with the matter, according to Reuters. Reuters first put the figure at $1.5 billion in its headline, then corrected it to $1.4 billion.

Trian is hardly a stranger to the company. It's a longtime Wendy's shareholder with around 16% of the company, Investing.com reported in August. Earlier that month, the Financial Times reported that Trian was preparing a potential bid to take Wendy's private with a consortium that could include BlueFive Capital and major franchisee Flynn Group, as relayed by Hospitality Week.

Then it seemed to step back. In late August, Reuters reported, citing sources, that Trian had no plans to make a take-private bid for Wendy's at that time, according to Investing.com's account. Those sources said Trian had concerns about Wendy's performance, including its recent trading price and valuation multiples, and its strategic direction, and that it was keeping an open mind about its future intentions. If the Journal's report holds, the open mind has produced an offer.

It isn't Trian's first look, either. In a May 2022 SEC filing, Trian said it might participate, alone or with third parties, in a potential transaction involving Wendy's. Wendy's said at the time: "Consistent with its fiduciary duties, the Board will carefully review any proposal submitted by Trian Partners."

For now, the offer is a press report, not an announced deal.

Sources

  1. Trian Fund Management propose de racheter Wendy's pour 1,4 milliard de dollars, selon le WSJ, Reuters (via Boursorama, French machine translation)
  2. Wendy’s stock plunges as Trian shelves take-private bid, Reuters reports, Investing.com (via Yahoo Finance)
  3. Nelson Peltz eyes $1.4bn bid for Wendy’s, Hospitality Week
  4. Trian Schedule 13D/A on The Wendy's Company (May 2022), SEC EDGAR
  5. The Wendy's Company Comments on Amended 13D Filing from Trian Partners, The Wendy's Company

Tags: mergers-acquisitions · retail-consumer