Let's assume an official take-over transpires. If an official take-over offer is made at $22, one would assume the share price to sit around $21-$23, or something close to $22. Considering there are still 5M shares short (31-Jul-13 figures will be released in a couple of hours), would it be fair to expect the share price to trade well above $22? Can I assume the short positions must be closed prior to the take-over? If this assumption is correct and shareholders are aware of the outstanding short positions, it would be interesting to see what price holders will sell their shares for knowing that approx 5M shares need to be bought back on the market.
Have i got the above completely wrong? any response would be appreciated.