The owner of Arby's said Thursday it is buying Wendy's International Inc. in an all-stock dealworth $2.34 billion that comes after the burger chain's board rejected at least two earlier offersby the company.
Triarc Companies Inc., which is owned by billionaire investor Nelson Peltz, will payabout $26.78 per share for the company,which has about 87 million shares outstanding. The price isa premium of 6 percent from the company's closing price of $25.32 Wednesday.
Pam Thomas Farber, 53, daughter of Wendy's founder Dave Thomas, said the family was devastatedby the news.
"It's a very sad day for Wendy's, and our family. We just didn't think this would be theoutcome," she said.
If her father were alive to hear news of the buyout, "he would not be amused," Farbersaid.
"It's a very sad day for Wendy's, and our family. We just didn't think this would be theoutcome," she said.
If her father were alive to hear news of the buyout, "he would not be amused," Farbersaid.
The Thomas family opposed the plan, and instead supported a buyout bid from a Wendy'sfranchise owner, 10TV's Cara Connelly reported.
They urged stockholders on Thursday to vote against the Triarc buyout, Connellyreported.
Under the terms of the deal, shareholders at Wendy's, the nation's No. 3 hamburger chain, willreceive 4.25 shares of Triarc Class A stock for each share of Wendy's stock they own.
Atlanta-based Triarc said its shareholders will have to approve a charter amendment in whicheach share of its Class B stock will be converted into Class A stock.
Triarc said it will also change its name to include the Wendy's name.
Atlanta-based Triarc said its shareholders will have to approve a charter amendment in whicheach share of its Class B stock will be converted into Class A stock.
Triarc said it will also change its name to include the Wendy's name.
The company said it would keep Wendy's headquartered in Dublin, Ohio, but Pam Thomas expresseddoubt about the plan.
"You know they're going to say anything they want right now because that's part of the deal,"said Pam Thomas. "But who says in six months, 9 months, two years that it won't change and theywill be gone?"
Dave Thomas' daughter, Wendy, said she hoped a buyout would never come.
"Our father worked really hard," Wendy Thomas said. "He built a huge legacy and we want tokeep that legacy going."
The Wendy's board has been studying strategic alternatives since early last year. Sales haveslid in the struggling economy that has hurt many restaurant chains.
Wendy's shares fell 32 cents to $25 in electronic premarket trading.
Wendy's also reported first quarter earnings fell 72 percent in part because of expenses tiedto a board committee's search for alternatives that would boost the company's shares.
Wendy's shares fell 32 cents to $25 in electronic premarket trading.
Wendy's also reported first quarter earnings fell 72 percent in part because of expenses tiedto a board committee's search for alternatives that would boost the company's shares.
Wendy's said Thursday that its profits totaled $4.1 million, or 5 cents, a share for thequarter ended March 30 compared with a profit of $14.7 million, or 15 cents a share, a year ago.Revenue was down slightly to $513 million from $522 million a year ago.
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