Wendy's International
(NYSE:WEN) shares jumped $2.03, or 5.31%, to $40.26 today after rumors
surfaced that a potential bidder for the company has surfaced willing
to pay in excess of $50 per share. This comes shortly after the company
agreed to explore strategic options amid pressure by activist
shareholders.
Billionaire investor Nelson Peltz and famed
activist Bill Ackman have both pressured the company to unlock
shareholder value through a sale of the company. Wendy's initially
complied with the spin off of Tim Hortons in September and the sale of
its Baja Fresh chain in November, but the activist investors insisted
that this was not enough.
Finally, on April 26th, the company
announced that it had created a special committee of directors to
consider strategic options, including a possible sale of the company.
The move ended a two year campaign by Nelson Peltz's Trian Partners who
were successful last year in obtaining three seats on the company's
board.
Right now, all of these rumors are unconfirmed. But given
Peltz's past success forcing the sale of Baja Fresh and obtaining board
seats, perhaps the possibility of a buyout has some merit. Regardless,
this is a company that is definitely
worth watching!
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