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Group affiliated with Foley cited as third Wendy’s suitor

DUBLIN Ohio An investment group that includes a company led by former CKE Restaurants chairman and chief executive William Foley has emerged as a third potential bidder for Wendy’s International Inc.

Fidelity National Financial, a title insurance and investment concern where Foley serves as chairman, has teamed up with the private-equity firms Thomas H. Lee Partners LP, Oaktree Capital Management LP and Ares Management LLC in preparation for making a bid, The Wall Street Journal reported. The story did not name its sources and did not indicate how much the group might bid.

In addition to leading Jacksonville, Fla.-based Fidelity, Foley is involved with a holding company called Glacier Restaurant Group LLC, headquartered in Montana. Glacier owns four fledgling restaurant chains based in its home state, including Mackenzie River Pizza Co., Mambo’s, Craggy Range Bar and Grill, and Corner House Grille.

Foley entered the restaurant business in the 1990s as an adviser to CKE founder Carl Karcher, eventually rising to CEO and chairman. Under his tutelage, the company extended its holdings beyond the Carl’s Jr. burger chain to include the Hardee’s, La Salsa, Green Burrito and Taco Bueno quick-service brands. La Salsa and Taco Bueno have since been sold by the Carpinteria, Calif.-based company.

The report of Foley’s involvement came a day after David Karam, president of Wendy’s franchisee Cedar Enterprises Inc., revealed that his company has joined with private-equity investors in preparation for a possible bid on the franchisor. Karam told the Associated Press that his private-equity backers are Kelso & Co. and Oak Hill Capital Partners. He said the group could place a bid as early as next month, after meeting with Wendy’s management for a second time.

The Wall Street Journal reported that the second round of the burger giant’s sales process could be conducted within the next 30 days.

Karam did not divulge how much his group may be willing to pay for Wendy’s.

The third acknowledged suitor for Wendy’s is Nelson Peltz, whose Trian Fund Management holds a 9.8-percent stake in the burger company. Peltz owns about one-third of Triarc Cos. Inc., parent of the Arby’s quick-service brand. He has publicly described Triarc as a “natural, strategic buyer” for Wendy’s. Peltz has said his companies might pay between $37 and $41 for each share of Wendy’s stock they do not already own, which would value the company at $3.2 billion to $3.6 billion.

Wendy’s shares closed Thursday at $34.72, up 3.2 percent from Wednesday’s closing price.

Published reports have indicated that more than a dozen suitors may be looking to bid on Wendy’s. All are waiting to learn terms of a pre-arranged or staple financing package that Wendy’s advisers, J.P. Morgan and Lehman Brothers, have put together.

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