Wendy's rejects $1.4 billion hostile takeover bid
Summary
Wendy’s board unanimously rejected a $1.4 billion unsolicited takeover bid, saying the offer undervalues the company and its long-term prospects. The offer, led by Trian Partners and three other investment firms, proposed $7.35 per share; Wendy’s shares traded at $7.75 before markets opened Thursday.Key Facts
- Trian Partners, Flynn Group LP, BlueFive Capital and Sixth Street Partners led the takeover bid.
- Wendy’s said it received the unsolicited offer last month and formed an independent board committee to review it.
- Wendy’s chairman Art Winkleblack said the committee concluded the offer substantially undervalued the company.
- Wendy’s shares had fallen nearly 14% over the previous 12 months.
- CEO Bob Wright said Wendy’s needed to improve food quality and address operational issues such as staffing, training and drive-thru orders.
- Wendy’s was founded in 1969 and has more than 7,000 locations worldwide.
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