Church’s Fried Chicken rejected a takeover offer.

The San Antonio firm said the unsolicited, $463-million bid was from an investment group including Church’s former Chief Executive Richard F. Sherman, Stanley Faye, Shearson Lehman Bros. Holdings Inc., Citicorp Capital Investors Ltd. and C. Stephen Lynn. The company said the proposal was not in the best interest of its shareholders. Church’s is the nation’s second-largest fried chicken restaurant chain after Kentucky Fried Chicken.