Peltz's Trian Fund Ups the Pressure on Wendy's

Billionaire Nelson Peltz's hedge fund, Trian Fund Management, has turned the heat up on Wendy's International (WEN) and has announced that it is attempting to gain control of Wendy's board of directors, the New York Times' DealBook reported Monday.

Trian and its affiliates control nearly 8.6 million shares, or about 9.8 percent, of Wendy’s outstanding stock, and, if they gain control of the board, would be able to sell the company to another of Mr. Peltz’s vehicles, the Triarc Companies.

Triarc, which already owns the Arby’s fast food chain, began bidding for Wendy’s in July and said it was prepared to pay $37 to $41 a share. In November, it said it had made another bid that was below the earlier bid.

In a filing with the U.S. SEC, Trian said it will propose that Wendy's amend its regulations to increase its board size from 13 to 15, and that it would also increase to six the number of directors authorized to be up for a vote at the annual meeting. If Wendy's shareholders approve these proposals, and if Trian Partners successfully manages to get its six candidates elected, then Peltz will consequently gain a majority on the board.

Comments

[steve22033:]

Pelz and May are Greenmailers and nothing more.
If it weren't for Milkin's genius and Drexel, they wouldn't exist.

2008 Nov 19 04:22 PM