Ann: Intention to Make Takeover Bid, page-151

"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?"

Exactly this logic is why a special dividend would make it less desirable as a shareholder and so more vulnerable to a take over bid.

It's like the parent who gives the child an ice cream in advance as long as they are good the rest of the afternoon. Well, once the child has eaten the ice cream they've already got everything they hoped to gain so why be good?

If the company pays out 5 years worth of forward profits up front... well that's a clear sign I should thank my lucky stars I didn't have to wait the 5 years, take them, then sell and find another company to invest in.