I agree a special dividend of $1.85 would be far too risky as...

I agree a special dividend of $1.85 would be far too risky as far as leverage goes ... but I'd disagree somewhat with andrewjh who writes  "Not to mention the fact that such a dividend, once paid, would make the stock FURTHER liable to a take over, not less liable. Because it now has less going for it. A special dividend, being once off, is like taking one last puff of a cigarette before you throw it away.

If the value of TRS is decreased by a special dividend then doesnt that decrease its desirability and make it LESS liable for a takeover?

We could compare the situation with an unpopular Govt sitting with a large surplus.    Why not spend up and give some goodies .... rather than leave it all for the next winning Govt to splurge?     A special dividend of, say, 50 cents would indicate to some that the Management is confident and willing to fight a takeover.

Of course, if you dont like a special dividend of any size then ... what do you suggest is a good way to fight the takeover?   Sit back and hope that the Xmas sales are good?   And if they are not ?  what then ?