Billionaire investor Nelson Peltz's offer to buy Wendy's International Inc. makes it more likely that the fast-food chain will agree to go private for $38 to $40 per share, an analyst said Tuesday.
In April, Wendy's formed a committee to look at ways the company could boost its sagging stock price, and a possible sale was among the possibilities. The news followed agitation for change from Peltz, who runs the Trian Fund Management and its Triarc Cos. Inc. unit and won three seats on the company's board last year.
On Monday, Triarc offered to buy Wendy's for $37 to $41 per share, or between $3.2 billion and $3.6 billion.
Triarc, which owns fast-food chain Arby's, may be willing to boost its offer, depending on the outcome.
Cowen & Co. analyst Paul Westra kept an "Outperform" rating on the stock and expects Wendy's shares to best the market by 10 percent over the next six months.
"We believe that this letter further increases the probability that Wendy's will likely eventually be acquired in a go-private transaction within our unchanged valuation take-out range of $38 to $40," Westra wrote in a client note.
source:www.forbes.com
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