Wendy's rejects a $1.4 billion takeover bid from Nelson Peltz's Trian and adopts a poison pill
CNBC tells the latest chapter of a two-decade saga between Peltz and the burger chain he once owned.
Wendy's said on Thursday, November 5, that it rejected a $1.4 billion offer from an investor group led by Nelson Peltz's Trian Fund Management, which on October 28 offered $7.35 a share in cash to take the chain private. The group also included BlueFive Capital, Sixth Street Partners and Flynn Group, one of Wendy's largest franchisees. A committee of independent directors found the bid 'substantially undervalues' the company and ignores its turnaround plan under CEO Bob Wright. Trian declined to comment.
Wendy's adopted a one-year shareholder rights plan, or poison pill, after the group turned down a standstill agreement. CNBC recounts that a Peltz company owned Wendy's from 2008, and that Trian's Peter May and Peltz's son Bradley still sit on its board. Wendy's also reported a seventh straight quarter of falling same-store sales, though earnings and revenue beat estimates. The shares moved less than 1%.
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Shareholder rights plan
After exploring Wendy's rejects Trian's $1.4 billion takeover offer, for how the defense Wendy's chose works, see Shareholder rights plan.
Wikipedia explains a shareholder rights plan, colloquially a poison pill, as a defensive tactic a company's board uses against a takeover.
Wikipedia · Wade · 5 min
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