Triarc Cos, the restaurant chain led by activist investor Nelson Peltz, said in a filing on Tuesday it made an offer to buy hamburger chain Wendy's International on Nov. 12, but at a lower price than the range it indicated in July.
On July 30, Triarc said it would be prepared to offer between $37 and $41 a share for the hamburger chain.
Sources familiar with the situation told Reuters on Monday that Wendy's was expected to get tentative takeover offers and that Peltz would likely submit an offer by a Monday deadline.
The Wall Street Journal reported on Monday that a group that includes former Carl's Jr. and Hardee's Chairman William Foley and buyout firms Ares Management, Oaktree CapitalManagement and TH Lee decided against submitting a bid by the Monday deadline.
One sticking point in the auction is that the financing offered by JPMorgan Chase and Lehman Brothers contains several conditions that make it risky and unattractive to potential suitors, sources familiar with the situation told Reuters on Monday.
The size of Wendy's, which has a market capitalization of $2.7 billion, could make the deal difficult since leveraged buyouts over $1 billion have had difficulty getting funding in recent weeks.