COLUMBUS, Ohio (AP) -- A major shareholder
who has pressured Wendy's International Inc. to increase stock
value said Monday that he is ready to offer $37 to $41 per share to
buy the nation's third-largest hamburger chain.
Billionaire investor Nelson Peltz said his
company, Triarc Cos., which owns fast-food chain Arby's, would be a
"natural, strategic buyer" for Wendy's, according to a letter he
sent to Wendy's Chairman James Pickett that was filed with the
Securities and Exchange Commission.
Peltz's price range pegs Wendy's total value
between $3.2 billion and $3.6 billion.
Wendy's stock rose 16 cents to $33.69 in
Monday's regular trading session, then rose $3.25, or 9.6 percent,
to $36.94 after-hours.
Peltz, who runs the Trian Fund, revealed in a
separate filing July 3 that he and his allies had increased their
stake in Wendy's to 9.8 percent of the company's shares, from 8.4
percent.
He said in Monday's letter that, depending on
the outcome of due diligence, Triarc would be willing to increase
its offer.
Peltz set a deadline of 5 p.m. Wednesday for
a Wendy's committee to respond to the offer and terms set out in a
proposed confidentiality agreement. Wendy's formed the committee in
April to determine ways to boost its stock price, including a
possible sale.
"If we do not receive a favorable response by
then, we will wish the special committee well in its effort to
conduct an auction that will generate the best transaction for all
Wendy's shareholders," Peltz wrote. "We will, however, continue to
review and evaluate our alternatives with respect to Wendy's and
will continue to contact and discuss with our shareholders our
views regarding Wendy's."
A message was left after business hours
seeking comment from Wendy's spokesman Bob Bertini.
In the past year, Wendy's has spun off its
Tim Hortons coffee-and-doughnut chain and sold its money-losing
Baja Fresh Mexican Grill following pressure from Peltz to boost the
value of the company's shares. Peltz also gained control of three
seats on the company's board last year.
Wendy's, based in the Columbus suburb of
Dublin, operates about 6,600 restaurants in the United States and
abroad. It trails McDonald's Corp. and Burger King Holdings Inc. in
the burger business.
---
On the Net:
Wendy's International Inc.: http://www.wendys.com