WSJ : Papa John's Founder Recently Held Merger Talks With Wendy's

(RTTNews) - Papa John's International Inc. (PZZA) founder and recently ousted Chairman John Schnatter held talks to merge the pizza company with Wendy's Co.(WEN), the Wall Street Journal reported citing people familiar with the matter.

The talks between Wendy's officials and Mr. Schnatter, who still sits on the board and owns 29% of Papa John's, were preliminary and began before he stepped down as chairman last week over the use of a racial slur, the report said. The talks, which Papa John's board was aware of, have cooled since the incident, the report said.

Mr. Schnatter was pressured to resign as chairman after he used a racial slur during media training to prepare him for a return as brand spokesman following his withdrawal from ads in the wake of a dust-up with the National Football League.