Wendy's International, Inc. Announces an Agreement to Purchase up to $300 Million of Its Common Shares in an Accelerated Share Repurchase (ASR) Transaction.DUBLIN, Ohio Dublin is a city in Delaware, Franklin, and Union counties in the U.S. state of Ohio. The population was 31,392 at the 2000 census. In 2006, the population was estimated to be 36,565[1], and Dublin continues to be one of the fastest-growing suburbs of Columbus. -- As part of its plan to return capital to shareholders, Wendy's International Wendy's International, Inc. NYSE: WEN is the parent company of Wendy's Old Fashioned Hamburgers. It also owns 70 percent of Cafe Express and 25 percent (fully diluted) of Pasta Pomodoro. The Tim Hortons chain was spun off by Wendy's into a separate company in September 2006. , Inc. (NYSE NYSE See: New York Stock Exchange :WEN) today announced that it has entered into an agreement to purchase up to $300 million of its common shares from a broker-dealer in an accelerated share repurchase Share Repurchase A program by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares. This is usually an indication that the company's management thinks the shares are undervalued. (ASR (Automatic Speech Recognition) Using voice recognition to replace keypad entry for telephone voice menus. Typically used to speak the digits 0 through 9 insted of keying them, ASR systems may be able to recognize a limited vocabulary. See voice recognition and AVSR. ) transaction. The common shares purchased will be placed into treasury to be used for general corporate purposes. The Company had previously announced that its Board of Directors had approved a share repurchase program of up to 35.4 million shares. As part of that authorization, the Company repurchased 22.4 million shares for $803.4 million in a modified "Dutch Auction Dutch Auction An auction where the price on an item is lowered until it gets its first bid, and then the item is sold at that price. Notes: The U.S. Treasury (and other countries) uses a Dutch auction when it sells securities. " tender offer in the fourth quarter of 2006. The Company repurchased a total of 26.2 million shares during 2006. "The ASR enables us to utilize our strong balance sheet to return capital to shareholders in an efficient manner," said Chief Executive Officer and President Kerrii Anderson. "We are confident our Wendy's business will continue to produce improving results and generate positive cash flow as we execute our strategic plan, revitalize the Wendy's brand and improve restaurant operations across the entire system." The number of shares that the Company may repurchase pursuant to the ASR will not be known until conclusion of the transaction, which is expected to occur during the Company's first quarter; however, the Company expects to repurchase up to approximately 9 million shares. The price per share to be paid by the Company will be determined by reference to the weighted average price per share actually paid by the broker-dealer to purchase shares during a hedge period expected to be approximately one month, subject to a cap and a floor. Company to present at Bear Stearns conference Wendy's will present at the Bear Stearns 13th annual Retail, Restaurants and Consumer Conference at 11:15 a.m. Eastern Time on Tuesday, February 27. The event will be Web cast and will be accessible at www.wendys-invest.com. Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. statement Certain information in this news release, particularly information regarding future economic performance and finances, and plans, expectations and objectives of management, is forward looking. Factors set forth in our Safe Harbor under the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995, in addition to other possible factors not listed, could affect the Company's actual results and cause such results to differ materially from those expressed in forward-looking statements. Please review the Company's Safe Harbor statement at http://www.wendys-invest.com/safeharbor. Wendy's International, Inc. overview Wendy's International, Inc. is one of the world's largest and most successful restaurant operating and franchising companies. More information about the Company is available at www.wendys-invest.com. |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion