By Wallace Witkowski
Wendy’s Co. shares rallied in the extended session Tuesday after Nelson Peltz’s activist hedge fund Trian Partners disclosed it has talked with the fast-food company’s board about plans for a possible sale of the company.
In a Securities and Exchange Commission filing late Tuesday, Trian disclosed it had advised the board it intends “to explore and evaluate the possibility” of a “potential transaction with respect to the company to enhance shareholder value.” Trian owns 19.4% of Wendy’s /zigman2/quotes/204070192/composite WEN -1.55% 214.4 million outstanding shares.
Wendy’s shares surged 15% after hours, following a 2.3% decline to close the regular session at $16.27. At Tuesday’s close, shares are down 30% over the past 12 months, while the S&P 500 index /zigman2/quotes/210599714/realtime SPX +0.36% is off 6.1%.
”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 and/or their affiliates,” according to the filing .
Of the 41.2 million shares owned by Trian, Peltz directly owns nearly 10 million shares, while Trian founding partner and President Peter May directly owns 5.5 million shares.