Papa John’s Pizza founder John Schnatter engaged in merger talks with fast-food chain Wendy’s before he stepped down as company chairman, according to a report Wednesday, July 18.
TheWall Street Journal reported the merger talks were “preliminary” and have cooled since Schnatter resigned after a report surfaced that he used a racial slur during a May conference call with marketing firm Laundry Service. Papa John’s board of directors was aware of the discussions, the report said.
Shortly after his resignation, Schnatter said in a letter to the board that his decision to step down was a “mistake” and argued that the board should have investigated the incident before pressuring him to quit. Schnatter’s attorney reportedly argued that the board does not have the authority to oust Schnatter without a shareholder vote.
Full Contact: The Wall Street Journal
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