HDG- Good point, but what I mean is if there is such a large gap between current market PPS and hypothetical buyout price, why wouldn't the acquirer try to buy as much of the shares on the open market first?
Isn't that what a hostile takeover is in essence? Now maybe they can't buyout the entire company from the open market, but if they first start buying shares on open market at such a large discount to the "hypothetical buyout price", then theoretically the PPS should go up and then the final buyout "premium" will not be such a huge (> 150%) premium.