Peltz Readies Bid for Wendy's

The billionaire investor, whose Triarc owns Arby's, said he was ready to offer up to $41 a share.
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Billionarie investor Nelson Peltz took another step Monday toward making a formal bid for

Wendy's

(WEN) - Get Report

, the nation's third-largest hamburger chain.

In a

letter filed with the

Securities and Exchange Commission

Monday, Peltz, whose Triarc Companies owns Arby's fast food chain, said he was prepared to offer between $37 and $41 a share for Wendy's. The offer represents a premium of 10% to 22% over Friday's closing price, the letter notes.

"We believe that Triarc is a natural, strategic buyer for the company and should be encouraged to participate in the sale process the Special Committee is conducting," Peltz writes in the letter.

Wendy's last month said that it is eyeing a company sale. The move came as the fast-food chain slashed its earnings outlook for the year amid weak sales and high commodity costs.

In an earlier SEC filing, Peltz said Triarc was invited to participate in the sale process

but objected to a one-year standstill clause in a confidentiality agreement, which would limit the amount of shares an investor could own.

In a July 3 filing, Peltz disclosed that his Trian Investment Fund lifted its stake in Wendy's to 9.8% from about 8.3%.

Wendy's shares closed Wednesday up 16 cents to $33.69, before news of the SEC filing became public. In after-hours trading, the stock was up $2.31 to $36.

To see all of his stock holdings, check out the Nelson Peltz portfolio on Stockpickr. Among his investments are Tim Hortons (THI) , a Wendy's spinoff.