Wendy’s rejects buyout bid, girds itself for hostile takeover campaign

Wendy’s rejected a US$1.4 billion buyout offer from an activist investor, saying Thursday that the bid was too low and didn’t take into account the company’s long-term earnings potential under its new CEO.

The Dublin, Ohio-based burger chain also said Thursday that its board had adopted a “poison pill” plan designed to make it more difficult to engineer a hostile takeover of the company.

Noted investor Nelson Peltz made an offer last week to buy the chain, which has been struggling with high beef prices and ageing stores. Peltz said the fast-food landscape had become increasingly challenging, with consumers under pressure, intensifying competition and persistent inflation, and his offer was the best path forward for shareholders.