Trian Plans Takeover Bid for Wendy's, Shares Jump 15% and Halt Trading
Wendy's shares spiked 15% in early trading on Wednesday after reports that Trian Fund Management, led by Nelson Peltz, is preparing a takeover bid with support from BlueFive Capital and Flynn Group. The stock, up only about 1% this year, was temporarily halted for volatility. The move follows six consecutive quarters of same-store sales declines. Trian holds a 7.85% stake, while Peltz owns 16.24% of the company.
Wendy's International shares rose as much as 15% in early trading on Wednesday, triggering a temporary trading halt due to excessive volatility, after reports that Nelson Peltz's Trian Fund Management is preparing a takeover bid for the fast-food chain. The stock had gained only about 1% this year before the move. Trian is developing an acquisition proposal and has secured support from several investors, including BlueFive Capital and Flynn Group, a major franchisee. Representatives for Peltz and Wendy's did not respond to the reports. The stock was halted intraday due to the sharp price swing.