RE:RE:RE:nice bounce $4 again soon?The buying company normally goes down because the bid normally includes a premium over the current stock price of the target. People then immediately bid up the target and short the buying company as an arbitrage opportunity until it disappears.
However, since takeovers usually involve at least part stock deals, it is in the best interest of the buyer to cause to inflate its own company's price as much as possible prior to and during negotiations. There are limited ways to inflate stock price, but legitimate news releases as well as illegitimate leaks are obvious tools in the warchest. Since SVC has an established NCIB already running, they can also use that to put upward pricing pressure on the stock.
Invariably, if you believe this to be occurring, you ideally want to sell some time before the takeover announcement is made, and then to get back in after the drop, but timing it is very difficult. You can try to time it by watching factors such as daily volume, short-term volatility, short-interest, the total absense of insider trading, block trades, crosses, etc.
GLTA.