Wendy’s International (NYSE:WEN) shareholders are in for another surprise after Citigroup and Merrill Lynch have reportedly withdrawn their funding for Nelson Peltz’s bid for the company. Meanwhile, JP Morgan and Lehman Brothers have also supposedly declined to offer bidders staple financing on the transaction. The activist investor will still have funding from Deutsche Bank and Royal Bank; however, increased trouble among the banking sector may prompt those two banks to withdraw their support as well.

There has been a lot of speculation that the Wendy’s bid would end unsuccessfully anyway. The auction for the burger chain ran into trouble earlier this year after it failed to attract any meaningful bids. However, Nelson Peltz’s Triarc Cos made an unexpectedly low offer for the company at the bottom of its $37 to $41 per share range that it suggested the company is worth. Currently, Wendy’s shares are trading at just $28 each, however, making the offer somewhat attractive at this point.

So, what does this all mean for Wendy’s shareholders? Well, troubles among the large investment banks may have caused some problems, but there appears to be at least a few other banks that may be interested in offering additional financing if necessary. In fact, sources told Reuters that there are several other banks that are available to fill the gap. Overall, it appears that the bid may remain in tact as the auction process continues to wind down. This makes WEN a stock worth watching!

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McDonalds Corporation (MCD)
Triarc Companies, Inc. (TRY)
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