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Strategies & Market Trends : Speculating in Takeover Targets -- Ignore unavailable to you. Want to Upgrade?

To: Glenn Petersen who wrote (2126)	9/10/2010 6:35:30 PM
From: richardred	Read Replies (1) \| Respond to of 7256

Are Speculators Betting On A Takeover Of Wendy's Arby's Group? (WEN) Posted on 09/10/10 at 3:37pm by Scott Rubin Benzinga has been picking up on some unusual activity in shares of Wendy's Arby's Group. The stock rallied nicely yesterday, and we saw a huge trade take place which moved the stock up $0.08 in the matter of 2 minutes. The momentum is continuing today. The options have been very active, and the shares have surged another 4.44% to $4.70. Crazy takeover rumors have been swirling in the marketplace over the last couple of weeks as M&A has picked up. A lot of the chatter has been somewhat outlandish and is likely the result of traders trying to move positions in their favor. The speculation surrounding Wendy's (WEN), however, makes a lot of sense. Earlier this year, CKE Restaurants was bought out by a subsidiary of Apollo Management. The original bidder for the company, however, was private equity firm Thomas H. Lee Partners. THL was subsequently out-bid by Apollo. Is it a possibility that THL, having failed to acquire CKE, is now looking at WEN? We already know that there is at least the potential for a deal. In June, Wendy's largest shareholder Nelson Peltz, said that he had been approached by a third party that was interested in possibly taking the company private along with Peltz's Trian Fund Management. The activity in the stock suggests that something may be close to getting done. Furthermore, only days ago Burger King Holdings (NYSE: BKC) agreed to be acquired by 3G Capital at a large premium. The fact that the private equity world is circling in the fast food space is undeniable at this point. If you couple that with Peltz's prior statements, and the activity in the stock and options of WEN, it appears that this may be a deal worth speculating on. benzinga.com