An Arbitrage Trap of Sorts

Investors trying to profit from Twitter's possible buy-out deal are burnt badly twice just this month. With Disney, Verizon, Google (somehow I think they are best suited to buy Twitter) walking away, the news of Salesforce deciding not to "rescue" Twitter left Softbank as the only _rumoured_ entity to be interested.

Never ever get involve in an IPO; it was sold at 69/share at its height

I personally think there are a few reasons why this is a not an opportunity for an arbitrage
1) Twitter management did not show any interest to be acquired
2) There were no official talks announced, as such anything is speculative.
3) They are not in a dire situation yet; They have about 3B in cash and about 1.5B in debt, with a total of 2B in liabilities. The problem is profits are not coming, equity dilution, tons of stock-based compensation for employees.

As such, this isn't a distressed opportunity and neither is Twitter undervalued.