Exclusive-Activist investor Blackwells plans Wendy's board challenge -sources
By Svea Herbst-Bayliss
(Reuters) -Activist hedge fund Blackwells Capital is preparing to challenge Wendy's (NASDAQ:WEN) Co's board of directors in a push for improvements to the fast food chain's financial performance, people familiar with the matter said on Friday.
Blackwells, run by Jason Aintabi, plans to nominate several directors to Wendy's 12-member board, said the sources, who asked not to be identified discussing confidential deliberations.
The challenge pits Blackwells against another activist hedge fund, Trian Fund Management, which owns a 16% stake in Wendy's and has three representatives — Trian CEO Nelson Peltz, Trian President Peter May and Trian research co-head Matthew Peltz — serving on the Dublin, Ohio-based company's board.
Blackwells antagonized Trian this week over Walt Disney (NYSE:DIS) Co. Blackwells issued a statement on Thursday criticizing Trian for its attempted board challenge against the entertainment giant and came out in support of Disney CEO Bob Iger.
In the same statement, Blackwells said of Wendy's that Peltz had installed his son Matthew as non-executive vice chairman and «packed the board with business partners and friends, while presiding over a period of disappointing results for Wendy’s shareholders.» It made no mention of any plans to challenge the Wendy's board.
Blackwells declined to comment further on Friday.
«We welcome dialogue with all Wendy's shareholders,» Nelson Peltz and Arthur Winkleblack, Wendy's lead independent director said on Friday. «Our board and management does not have a monopoly on good ideas. In the spirit of good corporate governance, we are more than happy to engage with any shareholder to discuss their views and, as always, we are open to adding any new
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