please explain?, page-2

The traditional long-only institutional investors often move on once the take-over is announced. They are happy to take a price very close to the take-over price, and use the capital to invest in other stocks. This is exacerbated at the moment given the rest of the market is weak, and therefore cheaper than it was a few weeks back. Thus, rather than pick up a couple of extra cents, long-only investors would rather deploy the capital elsewhere.

The typical buyer is a hedge fund that has leveraged its position so that the 3.5 cent price gap is worth a lot more than 3.5 cents. They may also aggrevate for a higher offer, but they certainly won't want to see the deal fall over. IMO, their main game is therefore to leverage up the 3.5 cents to generate a good investment return well above the costs of borrowing.