questions on GNW

Genworth has agreed to be acquired for $5.43 a share in cash by privately-held China Oceanwide Holdings Group. But since the news announcement, GNW keep on dropping from 5.21 before news broke to current $4.

I am wondering why it is dropping? Maybe it is due to another news published at the same time: a new charge of $400-450 million for its LTC business.

So, is it that investors all believe that the deal will not go through in the end? What do you guys think?

Their LTC business is a mess. GNW recently announced major premium increase to all LTC policyholders, topping even last year’s. Gotta wonder whether policies will be honored.