Didn't get a chance today to see the intraday activity except for a couple of quick peeks so I can't really get a feel for what happened. Looking at the end result, it seems to be more of the same i.e. each time DNA gets to rally since the March pullback there is a pretty savage reaction to douse any sudden positive momentum. That is a very bearish candle today but a lot of sellers were mopped up too.
It is mostly the norm for the acquirer in a play like this to be punished for the usual reason, the downside of having to fund the takeover. However it appears from the as yet scanty info we have that there shouldn't be too much if any downside from funding this deal knowing the cash position etc.
My best guess suggests that the same forces are at play now as we have seen for some time. Maybe they were surprised by the announcement today. I was surprised that DNA did such a backflip today on what appeared to be a pretty positive call from DNA management. Probably some selling into the announcement as well, does happen a lot with small caps..
I find it hard to see the downside that the market showed today, this team are too canny to be taken for a ride I would think.......
