Triarc Cuts Its Wendy's Bid, As Other Potential Buyers Hold Back

Triarc Cos., chaired by billionaire investor Nelson Peltz, has said in an SEC filing that it made an offer for fast food chain Wendy's on Monday. Triarc didn't disclose the sum offered, but said the price is below the $3.2 billion, $37 to $41 a share valuation range, mentioned on July 30. Triarc said its offer would be largely in cash, with part paid in Triarc equity, avoiding the staple financing offered by Wendy's lenders, J.P.Morgan and Lehman Brothers. It is unclear which other bidders Triarc is up against. More than a dozen parties once showed interest in buying Wendy's, but the Wall Street Journal reported that a group including former Carl's Jr. and Hardee's Chairman William Foley and buyout firms Ares Management, Oaktree Capital Management and TH Lee decided against submitting a bid. Another group, led by Wendy's franchisee David Karam, hasn't indicated whether it submitted a bid either. "Most of us who watch this didn't really think that the numbers Peltz was talking about would hold true now because of the change in the credit world that has transpired over the past three months," said Dennis Lombardi, executive vice president of foodservice strategy at WD Partners.

Sources: Wall Street Journal, Reuters, Bloomberg
Commentary: Wendy's: Analyst Considers Possible Sale, Dividend • Peltz's Trian/Triarc Enter Confidentiality Agreement with Wendy's International • Eleven Fast Food Stocks To Take A Bite Out Of
Stocks to watch: WEN, TRY. Competitors: MCD, YUM

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