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Its funny the way the markets work and the human behaviour thats behind this machine:
For example, take these two instances; QBE/IAG bid and the current LLC/FKP bid. Both were rejected albeit offering a huge premium based on the traded security.
And even more so, being rejected on the basis that the offer is undervalued. This is two proofs that EMH is false and that day to day ticker 'quoted' prices does not represent value [even at current conditions].
Even taking this into the equation, IAG has fallen to about $1 below the offer despite the market itself saying it was undervalued.

What should we do?
The main aim is wealth creation. Continualy buying companies that get caught up in this human like depressed behaviour as we have seen with the likes of Toll and Woolworths (two outstanding run companies). As one hero of all ours stated:
"Time is the friend of the wonderful business, the enemy of the mediocre."