I can only speculate that a lack of information and confidence...

I can only speculate that a lack of information and confidence in management has meant that some traders will simply not rush a buy at 5c and sell at the 5.75c offer. I would also doublecheck the fine print of the takeover offer - was there a cut off date? Anyway, more experienced types than me might have sorted this out, and I know a few here who like this trade, but there are very few buyers at this level because there is no strong confidence that the 5.75c offer price is guaranteed IMHO.

One POSSIBLE explanation for not being sure that the 5.75 offer will come is that those in the know have a belief that the minimum 50% equity trigger for starting the offer will not be set off (See Schedule 2 of the offer document item 3a) In this scenario you buy in at say 5c but the offer is not triggered and you are stuck without a 5.75c offer from Nanking and the share price probably pulls back.

cheers

ece