Takeover Bid and stock price?

Well, you didn't pick a winner here but here are a couple points. In general, companies with stock prices of $8 or less seldom survive. The CEO left SOV a few days ago, never a good sign. It looks like the offer is not official but will be Monday. Santander Bank also took control of the Washington Mutual deposits so they have done this before. If the offer is $3.81, that should provide support for at that price and the stock MIGHT go up but will not fall below that price. The offer can be in two forms, cash buyout and providing that value in Santander stock, the later being the more common. I suggest you wait and see what happens and consider selling if it gets closer to your buy price, you might not have a choice. If SOV accepts the offer of a takeover, the stock might be removed from the market and a settlement made. Although it is possible, I do not think they will offer more unless they think they can get a better offer.