Purchasing calls prior to a hostile takeover

Wouldn’t it be a good idea for Acquiring Corp. to purchase calls of Distressed Corp. prior to a takeover - hostile or otherwise? This would help Acquiring Corp. to purchase Distressed Corp. at a “discount”. Also, to leverage this transaction, Acquiring Corp. could sell puts of Distressed, since the price will invariably go up. Acquiring Corp. uses thse funds to buy the calls. Moreover, even if prices fell below the strike price of this put options, Acquiring Corp. would simply purchase the stocks of a company that they want to acquire anyways. This is what they wanted anyways.

Probably difficult & pricey to purchase a call on all of a firm’s outstanding equity. And it might open you to charges of market manipulation. Not to mention that a company that, say, manufacturers combines generally doesn’t seek to profit by day trading.

not to mention on calls you pay a time premium… and that’s assuming your distressed corp even has options on it- what if stock’s at like 50 cents- you going to buy the $2.5 strike? Selling puts, you’re not in the driver’s seat, no chance to get out if the co. decides to back out or change the offer, timing issues, transaction costs, etc… Now you personally selling puts to leg into some investment to lower your cost basis or make a few extra $$- that makes sense. To do it for a merger, I’m not seeing it.