Why do you say it's a rumor when the company essentially said they received an unsolicited offer and then adopted a poison pill? What about the other potential buyers (1. Cintas CTAS (uniforms, etc.) 2. Stericycle SRCL (medical waste) 3. SterilMed (device reprocessor, privately held, just acquired by vc firms) and the valuation analysis that other posters have discussed? I don't disagree that the stock drops like a rock if the company fails to take advantage of this opportunity but I thnk that there is real interest in this company.
Companies will do this to pump the price of the stock up and then insiders sell on the news. The general public finds out too late and their holdings drop accordingly.not saying that`s what happened here, but is very possible and occurs often. If a larger company wanted sri they would have made the offer publicly so investors could have the news for arbitrage purposes.