Wendy's stock up on report of possible Yum interest
(Adds PepsiCo, Wendy's comments, updates share activity)
LOS ANGELES, July 13 (Reuters) - Shares of Wendy's International Inc. WEN.N rose as much as 3 percent on Friday after a report said Yum Brands Inc. (YUM.N) could consider buying the hamburger chain, but Yum, which owns KFC and Taco Bell, said its plate was full.
The report by mergers and acquisitions Web site dealreporter.com quoted two unidentified industry sources and also said soft drink maker PepsiCo Inc. (PEP.N) might consider partnering with Yum to buy Wendy's.
"While we don't comment on rumor or speculation, our plate is full with significant growth opportunities from our existing businesses around the globe," a Yum spokeswoman said.
Wendy's spokesman Denny Lynch said the company does not comment on market rumors or speculation.
A PepsiCo spokeswoman declined to comment.
In a note to clients referencing the report, UBS analyst David Palmer said Yum would be an unlikely buyer for Wendy's.
Wendy's said last month it was putting itself up for sale and slashed its full-year earnings forecast due to weak sales at established restaurants and increased commodity costs.
Wendy's shares were up 78 cents, or 2.1 percent, at $37.91 in afternoon trading on the New York Stock Exchange. The stock hit a high of $38.25 earlier in the session.
Yum's stock was up 27 cents at $34.49.
(C) Reuters 2007. All rights reserved. Republication or redistribution ofReuters content, including by caching, framing or similar means, is expresslyprohibited without the prior written consent of Reuters. Reuters and the Reuterssphere logo are registered trademarks and trademarks of the Reuters group ofcompanies around the world.nN13250132
- U.S. pledges 3,000 troops to fight Ebola; experts say more needed
- Tesla prevails in top Massachusetts court over direct sales
- Russia needs government investment to avoid recession, says former finance minister
- Ahead of independence vote, Britain pledges state funding to Scotland |
- Stocks turn higher ahead of Fed meeting, oil up