The Newshound

Billionaire Nelson Peltz's fund offers $1.4bn to take struggling US burger chain Wendy's private after its shares slump 65%

Nelson Peltz's Trian Fund Management is heading a consortium — including BlueFive Capital, Sixth Street Partners and Flynn Group, one of Wendy's largest franchise operators — with a $1.4bn cash offer of $7.35 per share. The bid represents a 20% premium to Wendy's Tuesday closing price; shares rose 16% on Wednesday following the announcement. Six consecutive quarters of same-store sales declines have now accumulated at the chain.

Wendy's has cycled through four chief executives in three years, with former Potbelly CEO Robert Wright assuming the role only in May.

Trian, which holds a 16% stake in Wendy's, argues that a private structure is necessary because the turnaround will be 'prolonged given the challenged state of the lower-income consumer.'

MoreThe IndependentStruggling fast food chain gets buyout offer from noted investorFinancial TimesNelson Peltz’s Trian makes $3.8bn take-private offer for fast-food chain Wendy’sAPWendy’s, struggling with beef prices and growing competition, gets a buyout offerUPIInvestors offer to buy Wendy's for $1.4B to take it privateNY PostWendy’s stock soars on report struggling chain could go privateReutersWendy's gets $1.4 billion take-private offer from Peltz-led group
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