I don't think Peltz ever intended to buy Wendy's. The $37 - 41 range was intended to get someone else to bid there. Peltz wants a quick kill, like most activist investors - buy stock, force a sale, pocket the premium. The strategy goes awry when you discover that the underlying business does not justify the premium. Look at Peltz's involvement with CEM. He bot stock, got a board seat, tried to force a sale, but no one wanted to buy the crappy company, or even its pieces, at a price above the prevailing market price. Now he's left holding herman. Same w/ WEN. It sure looks like the sale effort was a flop, and Peltz submitted a "bid", merely to save face. Of course his bid price remains undisclosed because it would make the $37 - 41 transparently fake.
I understand your point, and you may be correct. However, what if other potential bidders also realize, as you say, that it is not worth the price. Then the activist investor gets crushed on the shares he owns. Although you may be correct (I'm not sure yet), there is a great deal of risk in doing what you suggest Peltz has done.
I agree. I have been saying it will be an ego buy. That is just the type of shallow, idiotic thinking this man and his minions undertake. He would rather put out a bid than admit he, master of the universe, made a HUGE mistake.