...

Fast food restaurant Wendy's to be swallowed by rival Arby's

Business Materials 25 April 2008 02:36 (UTC +04:00)

The third largest US fast food chain, Wendy's, is to be taken over by the parent firm of smaller rival Arby's in a multibillion-dollar stock deal, the companies said Thursday, the dpa reported.

The merger comes after years of pressure by billionaire investor Nelson Peltz, who owns Arby's parent firm, Triac Cos, and who became the largest Wendy's stockholder in order to pressure a sale.

The deal is worth 2.3 billion dollars, and Wendy's stockholders are to receive 4.25 shares of Triac for each Wendy's share, the companies said. The sales price is based on a value of 26.78 dollars per share, a 6 per cent increase over its closing value a day earlier.

The two chains have about 10,000 restaurants around the United States, trailing industry leader McDonald's and number 2 Burger King.

Latest

Latest