Investment firms might be wanting to acquire Yum China Holdings Inc., the NYSE-listed operator of KFC and Pizza Hut in mainland China, according to some reports. China’s Hillhouse Capital Group is reportedly eyeing the fast-food operator as suggested by three people familiar with the matter, according to a report by The Information.Another report by Bloomberg suggested that global investment firm KKR & Co. is also exploring takeover possibilities according to some people who asked not to be identified because details are private. However, reports suggest that talks are still in their nascent stages and no one could confirm if there would eventually be a deal or not. Yum China operates more than 8,100 restaurants in over 1,200 cities and towns across mainland China.

So, it has prepared the “poison pill”. John Schnatter resigned as the firm’s chairman this year after admitting to using a racial slur in a conference call.But he now accuses the board of inadequate investigation into the matter, which he claims to have resulted in his forced resignation based on “rumor and innuendo”. Schnatter is still on the Papa John’s board, and owns 30% stake in the firm alongwith and his associates.

Stories have cited a toxic work culture and the use of a racial slur by founder and (now former) chairman John Schnatter.Mr. Schnatter has now been removed from the company amid other scandals potentially ranging from spying on employees to sexual harassment, though he still owns 29% of shares. But the news that moved shares on Wall Street had nothing to do with Papa John's current PR nightmare -- it had to do with a potential merger or acquisition of the Wendy's fast food chain. The deal, if it went through, would mean upgrading Papa John's technology and hoping to scale up the pizza chain.