Nelson Peltz group offers $1.4 billion to buy Wendy's

Billionaire Nelson Peltz and several partners offered to buy Wendy's for $1.4 billion on October 28. The group argues the struggling fast-food chain needs a turnaround that would be best achieved out of the public eye.

Peltz's Trian Fund Management is leading the group along with Flynn Group, one of Wendy's largest franchisees, and two other private equity firms. Trian is a longtime Wendy's shareholder with a 16.3% stake in the company along with related parties.

The group offered to pay $7.35 per share in cash according to a regulatory filing with the U.S. Securities and Exchange Commission. The offer represents roughly a 20% premium to Wendy's closing price on Tuesday.

Wendy's stock price rose as much as 17.3% to $7.20 following the announcement. The company confirmed it received the bid and said in a statement its independent committee would evaluate the proposal, though there is no assurance it would pursue the offer.