Wendy’s rejects $1.4 billion takeover offer and adopts shareholder defence plan

Wendy’s rejected an unsolicited $1.4 billion takeover proposal from an investor group led by Nelson Peltz, saying it undervalued the company and its turnaround prospects. The board also adopted a one-year shareholder rights plan as Wendy’s works to improve performance amid falling same-store sales and restaurant closures.

• Wendy’s independent directors unanimously rejected the offer, saying it did not reflect the company’s value and potential under its Dave’s Way turnaround strategy.· 2 sources
• The shareholder rights plan can be triggered when an investor or group reaches 15% ownership without board approval; eligible shareholders other than the acquiring group could then buy discounted shares.· 2 sources
• The Peltz-led group already holds 16.3% of Wendy’s shares. The Times of India reports that the group offered $7.35 per share for shares it does not own.· 2 sources
• Wendy’s reported July–September revenue of $547 million, above the cited analyst forecast of $531 million, while same-store sales fell 5.2%.· 1 source
• CEO Bob Wright’s plan includes food and marketing changes, simplifying menus and restaurant operations, and making breakfast optional for franchisees.· 2 sources