A major shareholder who has pressured Wendy’s International (WEN) to increase stock value said Monday that he is ready to offer $37 to $41 a share to buy the nation’s third-largest hamburger chain.
Billionaire investor Nelson Peltz said his company, Triarc Cos. (TRY), which owns fast-food chain Arby’s, would be a “natural, strategic buyer” for Wendy’s, according to a letter he sent to Wendy’s Chairman James Pickett that was filed with the Securities and Exchange Commission.
Peltz’s price range pegs Wendy’s total value between $3.2 billion and $3.6 billion.
Wendy’s stock rose 16 cents to $33.69 in Monday’s regular trading session, then rose $3.25, or 9.6%, to $36.94 after-hours.
Peltz, who runs the Trian Fund, revealed in a separate filing July 3 that he and his allies had increased their stake in Wendy’s to 9.8% of the company’s shares, from 8.4%.
He said in Monday’s letter that, depending on the outcome of due diligence, Triarc would be willing to increase its offer.
Peltz set a deadline of 5 p.m. Wednesday for a Wendy’s committee to respond to the offer and terms set out in a proposed confidentiality agreement. Wendy’s formed the committee in April to determine ways to boost its stock price, including a possible sale.
Tyler on August 1st, 2007 at 8:39 pm
With regard to Peltz’s offer, I don’t think that he’ll encounter too opposition in forming a deal. The chairman of Triarc’s asset management business also happens to be a Wendy’s board member. (see NewsVisual’s article: http://www.newsvisual.com/newsvisual/2007/07/triarc-and-wend.html)