Triarc Submits Bid for Wendy's
02.11.2007, 07:31
Triarc Cos. submitted a bid to buy Wendy's International Inc. for less than it had originally indicated it would pay.
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The parent company of the Arby's fast-food chain said in a filing with the Securities and Exchange Commission that it put in an offer for Wendy's on Monday, the deadline that bids were due for the hamburger chain. Triarc didn't disclose how much money it offered but said its proposed purchase price is below the valuation range that Triarc had indicated it would be prepared to pay in July, which was $37 to $41 a share.
Nelson Peltz, a large Wendy's investor who has agitated for change at the chain, is chairman of Triarc.
Triarc said its offer would be primarily in the form of cash with a portion to be paid in Triarc equity. That offer doesn't use what is known as staple financing offered by Wendy's lenders, according to a person familiar with the matter. The staple financing amounts to financing for potential Wendy's suitors arranged by Wendy's lenders, J.P.Morgan Chase & Co. and Lehman Brothers Holdings Inc.
It isn't clear who, if anyone, Triarc is bidding against. A group led by William Foley, chairman of Fidelity National Financial Inc., decided against submitting a bid after showing an early interest in the chain, another person familiar with the matter said. Another group led by Wendy's franchisee David Karam, which also showed early interest in the chain, hasn't indicated whether it submitted a bid.
More than a dozen parties showed interest in buying Wendy's in the early round of the sale process. But the tight credit markets squeezed Wendy's ability to offer buyers a staple-financing package. Buyers complained that the package assembled by Wendy's lenders wasn't workable.
Shares of Wendy's rose 5 cents to $31.65 yesterday in 4 p.m. New York Stock Exchange composite trading.