Wendy’s rejects $1.4 billion offer from Trian-led group

The group offered $7.35 per share in cash on Oct. 28. It also included investment firms BlueFive Capital and Sixth Street Partners, as well as Flynn Group, one of Wendy’s largest franchisees.

Wendy’s board formed a committee of independent directors in February to assess any potential bid from Trian, following a regulatory filing by the firm. The committee concluded that the proposal “substantially undervalues” Wendy’s and does not account for potential benefits from the company’s ongoing turnaround, Wendy’s said in a press release Thursday.

“Our confidence rests firmly in [CEO] Bob Wright’s proven track record of seasoned industry leadership, including restaurant business turnarounds,” Art Winkleblack, Wendy’s board chair and a member of the independent committee, said in a statement. Trian declined to comment on the decision.