4DS - Anything but Charting, page-27484

@vinneh (from charting thread)

the share price is 100% relevant, it sets the offer price

What's the reasoning for this though?

A few years ago one of the first stocks I bought was a mining co. (Congo I think). The SP hovered around the 20-30c mark for a while, but over time dropped to ~10c. I sold at a loss obviously, but a few weeks later there was news of a possible acquisition (~38c). The SP immediately rose to ~32c. Numbers are from memory but that's the jist of it. I'm sure there are other examples but my point is that I don't understand why the SP should set the offer price, as really it's only an indication of the last trade.

I realise SP dictates MC, I don't see why a possible acquirer would base an offer on the MC.