Trian Partners To Sell Shares Back to Wendys Co (WEN) Following Completion of $639M Tender Offer

Page 1 of 2

Trian Partners, led by Nelson Peltz, disclosed in a new filing with the U.S. Securities and Exchange Commission that it has entered into a purchase agreement with Wendys Co (NASDAQ:WEN), which is commencing a “Dutch auction” tender offer to repurchase up to $639 million in common shares. Trian, together with its members and affiliates, holds 89.54 million Wendys Co (NASDAQ:WEN) shares, representing 24.63% of the company’s outstanding common shares. The filing indicates that the shares held by Trian Fund, 64.80 million, has remained unchanged since the fund’s 13F filing for the reporting period of March 31. Under the purchase agreement with Wendys Co (NASDAQ:WEN), Trian has agreed to sell a portion of its common shares to the company following completion of the tender offer.

TRIAN PARTNERS

We track the latest moves of hedge funds as well as monitor their holdings to find actionable patterns and profit from them. Our research has shown that hedge funds’ large-cap stock picks historically delivered a monthly alpha of 6 basis points between 1999 and 2012, however this 50-stock portfolio also underperformed the market by seven basis points per month. On the other hand, the top 15 small-cap stocks had an average monthly return of 127 basis points per month during the three month holding period that begins two months after the end of each quarter. We have been sharing the stock picks of our small-cap hedge fund strategy since the end of August 2012 and it has returned 144.4% since that time, outperforming the S&P 500 by nearly 85 percentage points (read the details here).

New York-based Trian is an activist hedge fund founded by Nelson Peltz, Peter W. May and Edward P. Garden in 2005. The fund has investors ranging from insurance companies to pension funds and university endowments. The value of Trian’s public equity portfolio at the end of the first quarter totaled $8.56 billion. Its top holdings, in terms of value, are represented by E I Du Pont De Nemours And Co (NYSE:DD), PepsiCo Inc. (NYSE:PEP), and Mondelez International Inc (NASDAQ:MDLZ).

Follow Nelson Peltz's Trian Partners

Under an agreement with Wendys Co (NASDAQ:WEN), Trian will not tender or sell any of its shares during the forthcoming tender offer. The investor was requested by Wendys Co (NASDAQ:WEN) to not sell shares in the offer to maximize liquidity for other stockholders, to avoid impacting the purchase price received by stockholders participating in the tender offer, and to provide certainty regarding the hedge fund’s participation in the stock buyback program. At the same time, Wendys Co (NASDAQ:WEN) has agreed to purchase a pro rata amount of its shares back from Trian following the completion of the tender offer. These shares will be purchased at the price received by stockholders participating in the tender offer.

Page 1 of 2