Updated Version 2 – Wendy’s rejects Trian’s $1.4 billions takeover offer and adopts a “poison pill” plan

Additional details were added in paragraph 2, along with more background information throughout the text.

Reuters, Nov 5 - Wendy's WEN.O said on Thursday it has rejected a $1.4 billion buyout offer by activist investor Nelson Peltz's Trian Fund Management and its partners, fending off pressure from one of its largest shareholders.

The fast-food chain also adopted a so-called "poison pill" (a limited-duration shareholder rights plan) aimed at preventing any investor from owning more than 15% of the company.

According to regulatory filings, Trian and its affiliates currently hold a 16.3% stake in Wendy's.

For this proposed acquisition, Peltz, together with (link) restaurant operator Flynn Group and investment companies BlueFive Capital and Sixth Street Partners, aimed to revive the struggling sales of the American fast-food chain away from the scrutiny of public market investors.

"The proposal significantly undervalues the company," said the independent board committee responsible for evaluating the offer.

Trian had considered taking Wendy's private in 2022 (link), but dropped the plan in 2023. The firm has driven strategic changes and board shake-ups at several companies, including Disney (DIS.N), Kraft Heinz (KHC.O), and Procter & Gamble (PG.N).

The activist investor declined to comment.

In recent years, private equity firms have attempted to acquire other listed restaurant companies, including Papa John's, which successfully fended off acquisition offers from Irth Capital and Apollo Global (link) over the past year.

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