Los Angeles, Sep. 17 - More than a dozen parties have expressed interest in Wendy's International Inc's sale process, the Wall Street Journal reported on Monday, citing a person familiar with the situation.
On its Web site, the Journal reported the source said Wendy's board was still considering a recapitalization or other change in strategy in addition to an outright sale of the fast- food company.
More than a dozen parties have signed confidentiality agreements and voiced interest in the sale, the source said, including some private equity firms that could collaborate on a bid.
Wendy's officials were not immediately available for comment.
Triarc Companies Inc., parent of the Arby's fast- food chain, is the only company that has publicly expressed interest in making a bid for Wendy's. Triarc is controlled by billionaire investor Nelson Peltz, who has pressed for several changes at Wendy's over the last two years, including the sale of secondary brands, including Tim Hortons and Baja Fresh.
Private equity firms were also expected to pursue Wendy's.
While firms such as Blackstone Group and Thomas H. Lee were likely candidates to chase the auction, TPG Capital and Bain Capital were thought to be out of the running as the two firms hold significant stakes in Wendy's rival, Burger King Holdings Inc., and would face anti-trust issues.
But the recent credit crunch has significantly reduced the ability of private equity firms to pursue leveraged buyouts, particularly deals over $1 billion. Wendy's market capitalization is $2.8 billion.
Investment banks have stopped lending money to most private equity firms, as the credit crunch has left the banks unable to offload more than $300 billion of LBO debt currently on their balance sheets.
Also on Monday, the Journal reported that a group of Wendy's franchisees sent a letter to the company's board of directors expressing concern about "the slow decline" of the its brand over the last few years.
In the letter, posted on the Journal's Web site, the group representing more than 1,100 Wendy's restaurants said the chain had reverted "to an autocratic style of decision making which disregards or even misleads the franchisees while pursuing strategies which risk long term brand damage."
They listed the downsizing of products and portion sizes as examples.