Trian considers a takeover of Papa John's: report
Shares of Papa John’s International soared Tuesday on a report that Trian Fund Management may buy the pizza chain.
The activist hedge fund, which was co-founded by Nelson Peltz, is reportedly evaluating a takeover bid for the pizza chain, according to Dow Jones Newswires.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| PZZA | PAPA JOHN'S INTERNATIONAL INC. | 49.54 | -0.29 | -0.58% |
Trian is one of several parties to express interest since Papa John's put itself up for sale amid an acrimonious fight with its founder, John Schnatter.
Schnatter remains on the board and owns nearly 30% of the company's shares.
There are several other potential bidders, some people familiar with the situation told Dow Jones.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| WEN | THE WENDY'S CO. | 18.36 | -0.17 | -0.92% |
| GE | GE AEROSPACE | 182.16 | +1.56 | +0.86% |
Trian has a 13 percent stake in Wendy’s, Peltz was also behind the shake-up at General Electric and ousting of former CEO Jeff Immelt.
In June, Peltz, and Wendy's chairman, invited Schnatter to meet the burger company's leaders to discuss a possible deal.
Should Trian go ahead with a bid for Papa John's, it isn't clear whether Wendy's would acquire the pizza chain or whether Trian would purchase and operate the chain separately.
Papa John's is the world's third-largest pizza delivery chain after Domino's Pizza and Yum Brands' Pizza Hut.
Schnatter stepped down as chairman in July after reports leaked that he had used a racial slur on a company marketing call. Schnatter's relations with the board and management began to unravel last fall, when he drew criticism on social media for blaming Papa John's poor sales on the National Football League's handling of players' protests during the national anthem. He resigned as chief executive in December.