Is this price is set by design or just investors already bought enough sghares?
Who are the sellers anyway?
I am thinking that SVU is part of some ETFs and other funds that are sold as an index in the red days. These indexes do not know anything about tender or seperating SVU stock from others.
Well, smart money should know it and should be accumulating when dumb funds sell.
Institutions own over 93% of the shares and mostly have cost above $4.
Some of them like BlackRock have increased their positions recently.
Mostly, these funds will not tender since if they bought higher than $4 and hold their share so far then they will not sell at $4.
I think max of 40% and min of 20% will tender.
If you tender your shares then min of 75% and max of 100% of your shares will be accepted at $4.
If you buy 100k of SVU shares at $3.85 and tender them then at worst case case 75k will go at $4 and 25k will be return to you. If you sell your 25k above $3.40 then you will make money.
However, your chance of making good money is much greater than above scenario.