Billionaire Nelson Peltz may have thought he had the inside track to buy Wendy's (NYSE: WEN), since his Triarc Group already owns Arby's.
According to The Wall Street Journal, Mr. Peltz will have competition from a group including Thomas H. Lee Partners LP, Oaktree Capital, and First National Financial. The head of First National once ran the Carl's Jr. and Hardee's chains. And a third group has come to the table, this one backed by Kelso & Co. and Oak Hill Capital Partners.
Unlike several private equity deals that are falling apart because of tight credit markets, the Wendy's deal looks like it may be done at a nice premium for shareholders. Wall Street anticipates that the company could go for $37 to $41 a share. Wendy's stock is under $34.
Why is this deal different from others? Perhaps because the most visible bidders have a great deal of experience in the fast food business. This may give them more confidence that they will know which parts of the company can be improved to yield better cash flow.
That makes Wendy's shareholders more fortunate than those in other companies being pursued for buyouts.
Douglas A. McIntyre is a partner at 24/7 Wall St.
Reader Comments (Page 1 of 1)
9-27-2007 @ 1:16PM
Fred said...
I think that Triarc still has the best positioning for a Wendy's takeover. Not only does Triarc own Arby's, but Peter Rothschild, the Chairman of Triarc's asset management business also happens to be a director at Wendy's (newsvisual published a story about this a while back: http://www.newsvisual.com/newsvisual/2007/07/triarc-and-wend.html ). This gives Triarc more than one substantial advantage in making its bid.