Wendy’s Stock Soars 12% on Reports of a Deal to Take the Company Private

Wendy’s shares soared on Wednesday after the Financial Times reported that Trian Fund Management. Nelson Peltz’s firm, could lead a bid to take the restaurant chain private within a matter of weeks—a move that would give the activist investor full control of a fast-food giant with approximately 7,000 locations.

The group led by Trian—which already owns a 16% stake in Wendy’s—is expected to include the Flynn Group. One of Wendy’s largest franchisees, and BlueFive Capital, an Abu Dhabi-based firm, the Financial Times (FT) reported.

Peltz first notified the Securities and Exchange Commission (SEC) in February that he was evaluating ways to increase shareholder value—including a plan for Trian to take “control of the company». He expressed his view that the company’s shares, which have fallen significantly over the past year, are undervalued.

If Peltz decides to move forward this time, Trian would first submit the proposal in an official filing to regulators. Subsequently, Wendy’s independent directors would decide whether to negotiate directly with Peltz’s firm or conduct a broader auction process.

Wendy’s told the Financial Times that it “would carefully review any proposal submitted by Trian. In accordance with its fiduciary duties,” and added that the board of directors “periodically reviews the company’s strategic priorities” to maximize shareholder value.

Wendy´s share

Wendy’s shares surged as much as 17% following the publication of the news in the FT and were up more than 12.5%. Trading at $8.50 around 1:20 p.m. (Eastern Time). Wendy’s told the Financial Times that it “would carefully review any proposal submitted by Trian, in accordance with its fiduciary duties,” adding that the board of directors “periodically reviews the company’s strategic priorities” to maximize shareholder value.

Wendy’s shares surged as much as 17% following the publication of the news in the FT and were up more than 12.5%, trading at $8.50 around 1:20 p.m. (U.S. Eastern Time).