Credit Crunch May Postpone Wendy's Auction - NY Times

The planned auction of Wendy's International is in jeopardy of being pushed off as ongoing credit market volatility may leave potential buyers short of funds to complete the deal, the New York Times reports. Potential bidders are concerned the financing due to be provided by Wendy's bankers, JPMorgan and Lehman, includes less-than-optimum terms, and allows the banks an escape door should credit markets further deteriorate. An unnamed source says that while the banks sent financing terms to prospective buyers two weeks ago, they have made no formal commitments. Among potential bidders is the outspoken activist investor Nelson Peltz, who owns Arby's, and has prodded the company to put itself up for sale. Two private equity firms are also considering a bid.

Sources: New York Times
Commentary: Peltz Ready to Bid Up to $41/Share for Wendy's • Wendy's: Analyst Considers Possible Sale, Dividend • Eleven Fast Food Stocks To Take A Bite Out Of
Stocks to watch: WEN, JPM, LEH
Earnings call transcript: Wendy's International Q3 2007

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