It bothers me that there is never a second offer for any of these companies being taken over via stock buyouts or so-called private equity financing. Is every single diamond in the rough being scrutinized by exactly one bidder?
A lot of times, there is a second offer or another group that tries to put together a second offer, but it is so far behind the curve that its not able to get serious consideration. See the latest TXU private equity offer for example. And on a deal like that ($45 BILLION) there are not too many players that can kick in the ante for that table.
Other times, the private equity players and hedge funds that may be able to pay the freight look at the proposed transaction and conclude that the risk vs. potential reward is too great for the play being discussed. Again, think about the recently announced TXU deal. A lot of people in Texas are wondering how the heck KKR is going to make any money on the deal and there are a lot of issues coming out on this thing (environmental, utility rates, regulatory complications, etc.).
The pool of potential private equity players is pretty small to begin with and perceptions of a workable deal vary considerably among those players. A deal is often done by the time anyone else is aware that the company wants to be bought.