Wendy’s shares fell more than 14% after Reuters reported that Trian Fund Management, which holds roughly 16% of the burger chain, has shelved its take-private bid. Trian had been preparing the buyout alongside BlueFive Capital and franchisee Flynn Group, and news of the effort in mid-August had briefly pushed the stock up nearly 15%, lifting Wendy’s market value to about $1.72 billion.
Reuters cited concerns over Wendy’s performance, current trading price, valuation multiples and strategic direction as reasons for the pullback. Trian said it is “keeping an open mind about its future intentions” regarding its stake in the company.