Company X received a tender offer buyout price of $8.50/share. Fast forward 10 days later and the share price has exceeded the $8.50 offered. Is this common and what is happening? It was in the offer filing that if the acquiring company would have less than 90% of the shares, it would go to a vote and I already assumed that the initial offer would be turned down by long term shareholders.
Someone thinks the price will go up as the potential buyer tries to solidify control or as the current owners or the company buy to prevent the takeover... and the takeover bid is implicitly a statement that the company is worth more than this to those buyers.
Whether any of this is rational, gods only know; you'd have to research the company to find out.