The Wendy’s Company (NASDAQ:WEN) stock surged 14.05% in the pre-market trading session on Tuesday, following reports of renowned investor Nelson Peltz‘s Trian Fund Management is rallying support for a potential bid to privatize the fast-food chain.
Trian has been in discussions with external investors, including those in the Middle East, over the past few weeks to finance a possible takeover. Trian, which currently owns 16% of Wendy’s along with Peltz, has had a longstanding relationship with the fast-food chain since a 2005 activist campaign, reported the Financial Times on Tuesday.
Despite Trian’s interest, no formal approach to acquire Wendy’s has been made, and there’s no certainty that the financing discussions will lead to a takeover bid, according to the report.
In February, Trian stated in a regulatory filing that Wendy’s was “undervalued”, suggesting the company to explore strategic alternatives. Wendy’s responded by stating it would “carefully evaluate” any takeover approach from the activist investor.
Wendy’s and Trian Fund did not immediately respond to Benzinga‘s request for comments.
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