Beleagured fast-food chain Wendy's International Inc. issued a press release Monday to remind Wall Street it remains on the block. The actual wording simply said:
The Special Committee of its Board of Directors, which is reviewing the Company's strategic options, believes that it is in the final stages of its review process.
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Great! Particularly love that "believes." If the special committee doesn't know, who does? More seriously, nowhere in the release does the company indicate who it is talking to or if it's attracted potential buyers. This prompted BloggingStocks to ask:
That's right: a press release saying nothing except that they're almost done with their review -- What does that even mean? 2 more days? 2 more months?
It's worth noting that the three-month "standstill" period between Nelson Peltz and Wendy's expired Dec. 1, thereby giving Peltz the option to increase his shares or aggressively pursue a purchase of the company. Previously under the standstill agreement, Peltz wasn't allowed to increase his holdings, call a special meeting of shareholders or propose any mergers. Interestingly, Peltz hasn't aggressively added shares, or done apparently much of anything with the chain.
It appears, however, the market has taken note of the press release about nothing and has knocked Wendy stock down $1.53 a share or 6% at 2:40 pm. - Matthew Wurtzel
See press release from PR Newswire
See post from BloggingStocks
Comments
"[F]inal stages of its review process" combined with not mentioning any buyers, is another way of saying "we haven't been able to find a buyer, so we're about to give up." Seems pretty clear to me. Looks like the market thought so too.