$NOVN expect merger news with $LGND A merger announcement often sends a stock's price rising, usually to meet the price proposed in a takeover bid. However, there can sometimes be uncertainty surrounding the stock price, especially if there are doubts that the deal can be completed because of investor financing issues. Also, during hostile takeover attempts, the stock price can also fluctuate if the management tries to entice friendly investors into the company. Sometimes traders will try to capitalize on the announcement of mergers by buying the stock before the price rises, which is called arbitrage. Stock prices can rise on the anticipation of a buyout of a "takeover target."