Wendy's bidders said wary of financiers' 'escape' pact

Nation's Restaurant News,  Nov 19, 2007  

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DUBLIN, OHIO -- Continuing uncertainty in the credit markets could threaten or delay a sale of Wendy's International, according to media reports that cited unidentified sources close to the situation.

Suitors who were expected to turn in bids by Nov. 12 reportedly may be wary of an escape clause in the financing to be provided by Wendy's banks, JPMorgan Chase and Lehman Brothers, that would give them the right to withdraw financing if the volatile credit markets keep deteriorating.

Both the New York Times and a blog entry by a Wall Street Journal reporter cited the potential for delays in a deal or that one might be scuttled altogether.

A Wendy's spokesman would not comment on speculation that the company might be seeking more time for banks to arrange alternative financing.

Potential bidders whose names have come to light in recent months are Nelson Peltz, head of Arby's parent Triarc Cos.; Gene Carlisle, chairman of a Wendy's franchisee, Carlisle Corp., of Memphis, Tenn.; another Wendy's franchisee, David Karam, owner of Cedar Enterprises in Columbus, Ohio; and a consortium of investment firms including one headed by William Foley, former CKE Restaurants chairman and chief executive.

Reports that more than a dozen suitors were interested in buying the Ohio-based operator or franchisor of some 6,600 Wendy's restaurants could not be substantiated.

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