I agree that large buyout premiums happen more often than not. All I'm trying to add is some context to those premiums from the perspective of the investor, not the acquiring company.
If all someone hears is the premium relative to the previous close they're going to get a distorted view of the potential gains possible.
That view, IMHO, leads to a mentality that's unrealistic considering that half of these deals were bought out at prices 15-50% below their 52w high.
In the end, buy & hold is also a canard. Investors should always cut their losers while holding onto their winners.
I have little interest in such premiums for shares of stocks that I do not own. The relevant predicate for me is the premium paid relative to my basis for shares I do own. Suffice to say I was pleased with the premiums paid for my shares of MEDI[>600%], MLNM, RNAI, HYSL, ICOS, SCIO, CHIR, ESPR and others now forgotten.
On the other hand, I did not recover even my basis on buyouts of my shares of TNOX or PRCA. And I sold ENCY for tax-loss near end of 2007...bad timing there.
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