Theoretically your example is possible. In reality, what board will agree to a 30% premium of a depressed price that significantly undervalues the company?
Yes, one could point to WGO from recent memory. WGO's acceptance of BPT's 20c bid was professional negligence/incompetence. Mind you, the Scots were the primary reason IMO as to why it was so discounted to begin with.
Back to original point - if I was a suitor, I certainly wouldn't be wasting my money shortselling a company to depress its price artificially just so I can lob a 30% bid price that has next to no chance of succeeding, and then having to spend the money covering my shorts. Makes absolutely no sense to start a bid with a starting position of say -10%.
But that's just old fashioned me with a simple logical mind.
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