The stock is dropping for three reasons: 1) several index funds (funds which mirror the S & P 500 index) tendered their General Signal stock (electing cash) and now have to dump the shares of SPX stock they received (cash was prorated) because SPX is in the S& P 400 index (as opposed to GSX which was in the 500 index). The stock ran up last week when it was announced that SPX was being added to the 400 index, but the 500 index is much more widely followed hence there were more shares which had to be sold. 2) shareholders representing almost 3,000,000 GSX shares failed to make an election in the merger, and therefore got stock by default. The stock they got was worth much less then where GSX was trading (even when SPX was at 48). These people probably weren't even aware of the merger and now find themselves stock with an illiquid stock they have never heard of and with a significant loss to boot. I beleive they have been dumping. 3) there is no significant short interest, so there is no one to buy as the stock plummets. For what it is worth, I have covered almost all of my short position, and when not be surprised if the selling pressure is almost done.
Thanks for your honest opinion, I'm one of the holders of the 3 million + shares that COULD NOT VOTE on the share outcome. They really screwed us of our rights. RULES & REGULATIONS are made only for who holds the most. You are correct, we did not get a word on selecting the options. Thanks again!