Hedge funds will pay a bit more than the current offer, betting...

Hedge funds will pay a bit more than the current offer, betting on one of a few possible outcomes:

1. Ceph gets to 90% and the offer goes up to $1.40 (eg. pay 3-4 cents to make 5 cents)

2. Ceph has to increase the offer above $1.40 at some point

3. Someone else bids more than Ceph and / or there is an auction -- they would make a LOT under this scenario but it is pretty low delta now (ie. unlikely)

If the offer lapses and the share price falls, they lose (big). If the offer goes through at $1.35 they lose (small).