When the current SP is $1.6, the odds of a takeover at $3.60 are...

When the current SP is $1.6, the odds of a takeover at $3.60 are essentially zero, $2 would seem more likely this week. I agree with you that SVR seems significantly undervalued at the moment though, so personally I'm hoping for no takeover offer. That said, with no detailed visibility of what SVR's finances look like on either the company debt or customer side it's hard to feel confident that the market is wrong rather than me.

Recent interim div was 7.5c/share, assuming final div is the same or higher that means we're either at or very close to paying a 10% yield, and that threshold always reminds me of a Marcus Padley warning against value traps: "When something looks like it yields 10%, it doesn't."