Wendy's jumps as largest holder Trian explores potential purchase (update)

Justin Sullivan/Getty Images News

Update 6:05pm: Adds Wendy's statement.

Wendy's (NASDAQ:WEN) jumped 15% in after hours trading after its largest holder Trian proposed a potential acquisition of the fast-food chain.

Trian Partners, which is run by famed billionaire investor Nelson Peltz, disclosed owning a total of 41.6 million shares of Wendy's (WEN), or a 19.4% stake, in a 13D filing.

Wendy's said in a statement that it will "carefully" review any proposal submitted by Trian.

Earlier today Trian informed the Wendy's (WEN) board that it plans to explore a transaction with the company, according to the filing. Wendy's has a market cap of about $3.6 billion.

"Such a potential transaction could include an acquisition, business combination (such as a merger, consolidation, tender offer or similar transaction) or other transaction that would result in the acquisition of control of the Company by the Filing Persons ..." Trian said in the filing.

Trian and Peltz have a long history with the hamburger chain and have been holders of Wendy's (WEN) for almost two decades. Recall that in 2008 Triarc Cos., the investment arm of Peltz, purchased Wendy's for $2.2 billion at the time, combining the hamburger chain with the Arby's chain. In 2011, Wendy's sold the majority of Arby's for $130 million in cash to a private equity firm.

Recall that in July 2018 the WSJ reported that Papa John's (PZZA) founder John Schnatter held merger talks with Wendy's officials.