TS03 Inc Trust Units TSTIF

RE:RE:RE:Question?

[Drrwong]

@Metalsguy: 

If investors are expecting rival bids, you are correct that SP could trade above the initial deal price.  However, in a lot of those situations, these rival companies had actually/implicitly expressed interest in the target company previously, and the target companies are typically totally independent (i.e.: no exclusive marketing deal with the initial acquirer--assuming Getinge gives the initial bid here).  It all depends on how much confidence the Street has in terms of a rival bid coming.  If the level is not very high, the arbs will just come in and cause the SP to trade very close to the deal price.  

One example recently is Novadaq (NDQ/NVDQ):  taken out by Stryker at $11.75 USD/share just recently (69% premium over previous close).  Also has best-in-class fluorescent imaging technology that can map lymph nodes for cancer, etc (alhtough not as dominant as TSO3 sterilization technology in scopes).  Management dropped the ball in commercializing the technology, and the takeout price is only a fraction of the SP high of $25 USD in 2014.  The stock traded slightly above the Stryker takeout price initially, but quickly well back as the arbs moved in.