Wendy’s rejects $1.4 billion Trian bid, adopts poison pill
What's new: The plan can trigger because the investor group already owns 16.3% of Wendy’s shares, above the 15% threshold.
Wendy’s rejected a $1.4 billion cash bid from an investor group led by Nelson Peltz’s Trian Fund Management and put in place a one-year shareholder rights plan to block a hostile takeover. The group offered $7.35 a share on Oct. 28 and includes BlueFive Capital, Sixth Street Partners and franchisee Flynn Group. Wendy’s said its independent directors found the proposal “substantially undervalues” the company and does not reflect potential upside from CEO Bob Wright’s turnaround plan. The rights plan is designed to kick in if an investor or group holds 15% or more of the company; the Trian-led group already owns 16.3%. Wendy’s shares had jumped after the offer surfaced, while same-store sales fell for a seventh straight quarter.