Jetson, I think that takeovers have everything to do with the current share price. If Biota share price was currently overvalued rather than undervalued, then you would there would be far less chance of a takeover.
You identify a value for a company by evaluating those factors you mention such as future income streams, and giving a multiple. An astute takeover would involve taking advantage of the difference between the current share price & the intrinsic value.
In BTA's case, if Lani Phase III is a success then BTA is potentially worth $5+++, maybe $10++ if they negotiate a great deal. A company launching a takeover may offer $4 per share, nearly 100% premium to the current share price yet still below intrinsic valuation. That would give current shareholders an instant 100% profit, and also be a great deal for the company doing the takeover.
I for one, would prefer not to see a takeover just yet :p.
BTA Price at posting:
$2.04 Sentiment: LT Buy Disclosure: Held
