@ Anon17274- Companies that were once strong, but are currently facing trouble are often targets for a takeover. Say a leading manufacturer has an accident that causes large environmental and economic damage to an area. The public backlash may cause investors to jump ship, causing the stock value to plummet.
The company is still valuable, and the short-term mindset of investors may mean the loss in value is only short-lived. A strong company in the same industry may investigate this company as a potential takeover target. If they believe the country can recover from its troubles, they may pursue the target.
If they are unsuccessful, they have at least forced the company into buying back its own shares and increasing the value of shares they purchased in the takeover attempt. In the end, an attempted forceful takeover can be just as lucrative as a takeover itself.