Nelson Peltz's Trian leads $1.4bn offer to take struggling US burger chain Wendy's private as shares soar 16%

Trian Fund Management, led by billionaire Nelson Peltz, has teamed up with BlueFive Capital, Sixth Street Partners and Flynn Group — one of Wendy's biggest franchisees — to table a $7.35-per-share all-cash offer that values the burger chain at $1.4 billion. The bid represents a 20% premium to Tuesday's closing price and would remove Wendy's from public markets altogether. Wendy's shares surged 16% on Wednesday following the announcement, even as the stock sits more than 70% below where it traded five years ago.

Wendy's has posted same-store sales declines across six straight quarters, and rival Burger King has overtaken it for third place in the US burger market.

Trian, which already owns roughly 16% of the chain, has warned Wendy's faces 'a critical juncture' and requires substantial capital investment that the consortium believes would be simpler to deploy away from public-market scrutiny.

Wendy's has cycled through four chief executives in three years, with its latest leader, Robert Wright, having taken the top job only in May.