Triarc Companies (TRY), which is owned by billionaire investor Nelson Peltz, will pay about $26.78 a share for the company, which has about 87 million shares outstanding. The price is a premium of 6% from the company's closing price of $25.32 Wednesday.

Under terms of the deal, shareholders at Wendy's, the nation's No. 3 hamburger chain, will receive 4.25 shares of Triarc Class A stock for each share of Wendy's stock they own.

Pam Thomas Farber, 53, daughter of Wendy's founder Dave Thomas, said the family is devastated by the news.

"It's a very sad day for Wendy's, and our family. We just didn't think this would be the outcome," she said.

If her father were alive to hear news of the buyout, "he would not be amused," Farber said.

The deal caps two chaotic years for Wendy's in which it has sold or spun off operations, slashed its corporate staff and had its wholesome image tarnished by a woman who falsely claimed she found part of a finger in her chili.

Pushed by activist shareholders, Wendy's spun off its Tim Hortons coffee-and-doughnut chain and sold its money-losing Baja Fresh Mexican Grill. Chairman and CEO Jack Schuessler abruptly retired in March 2006, months after a woman and her husband were sentenced to prison for extortion for their plot in March 2005 to plant part of a human finger in a bowl of chili at a San Jose, Calif., Wendy's restaurant and saying it was served to her.

Farber said the family didn't think much of Peltz' and Triarc's tactics.

"They came after them (Wendy's) and came after them and came after them. They spun Tim Hortons off, they did this, they did that. They did everything they asked but it wasn't enough."

Farber said she had just gotten off the phone with her sister Wendy, 46, the company's namesake.

"She's feeling horrible. She just is devastated," Farber said.

Farber said the family supported an alternate bid led by Wendy's franchisee David Karam, president of Cedar Enterprises.

"We knew what Dave Karam's commitment was to Wendy's, his family's commitment — just as ours. His dad was a very good friend of our dad's and was one of the very first franchisees, so there's a lot of history."

Wendy's officially deferred comment to Triarc, which had nothing further to say right away.

Triarc did say that its shareholders will have to approve a charter amendment in which each 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 Wendy's board has been studying strategic alternatives since early last year. Sales have slid despite a struggling economy that should benefit the chain.

Wendy's on Thursday reported first-quarter earnings fell 72% in part because of expenses tied to a board committee's search for alternatives that would boost the company's shares.

Wendy's said profit totaled $4.1 million, or 5 cents a share, for the quarter 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.

Enlarge Wendy's International Wendy's founder Dave Thomas was the company's most successful pitchman.

ADVERTISEMENT

Iconocast is about learning and teaching without borders; we offer eMarketing, Internet Advertising, Internet Marketing, Search Engine Optimization, Search Engine Marketing, Online Branding, and eMarketing News Services.

Live help by AliveChat

Iconocast Home Page

Contact Iconocast

Iconocast Health Articles

© 2003-07. ICONOCAST is a trademark of iconocast.com.