CIT Group, Inc. New Common (CIT)

[Windfall Magic]

OK,
I will try I am not very good at this:

First the first drop after the announcement was due to retail panic, then the Hedge fund guys start working the stock down as to limit the price panic so they can get out.This take about five days. Then a hedge fund guys and the MM's start working the price back up to reposition this takes about five days or so. Then the MM's start fishing with price and volumes to move the stock as needed.

So to answer your question the price will move up to pull in retail S/H so that the MM's either N/S the stock or accumulate when it is low.
Please chime in if I am mistaken here or if you can put out a better explanation>

Windfall Magic