Rumors after John's dad say that the hedge fund owner of one part of Wendy's plans to buy the pizza chain (PZZA)

Hollis Johnson

• Papa John's was scolding early Tuesday after a report indicates that Trian Fund Management was interested in acquiring the pizza chain.
• According to the Wall Street Journal, the activist hedge fund has contacted the pizza chain "to gather information when exploring a possible offer".

Papa John's mobilized Tuesday after the announcement of a report that Trian Fund Management, the hedge fund holding a stake of about 13% in the Wendy & Burgers chain. S, was interested in buying the chain of pizzas.

According to the Wall Street Journal, the activist hedge fund has contacted the pizza chain "to collect information when exploring a possible offer". Papa John's shares rose about 7% shortly after Tuesday's opening bell.

Nelson Peltz, Trian's co-founder and chairman of Wendy's, has met with Papa John's founder and former CEO, John Schnatter, to discuss a possible deal at the end of June, the newspaper said. . However, the report also indicates that several other bidders are interested in Papa John's, including private equity firms.

Last month's reports indicated that Schnatter had attempted to buy back the company it had founded in 1984. It was the third largest pizza delivery chain in the world, with more than 5,000 establishments in the world. 45 countries.

Schnatter, who still holds nearly one-third of the company, resigned from his board of directors in July after admitting to having used a racial insult at a company teleconference in May. Papa John's has since passed a provision relating to the poison pill designed to prevent him from taking over the business by buying his shares in the open market. The plan takes effect "if a person or group (including a group of people acting in concert) acquires beneficial ownership of 15% or more" of the common shares of the company, according to the company's press release.

Papa John's was down 6% this year until Monday.

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