JRS Co Has Just Announced That the Board Has Reached a a Selective

JRS Co. has just announced that the board has reached a selective share buy-back agreement with a large shareholder. The company will buy-back all of the large investor's shares for 90 per cent of the current market value. When the share buy-back was announced, the shares of JRS Co. fell by 7 per cent. Which one of these explanations could reasonably explain the drop in share price?

A) The willingness of the large investor to accept the targeted share buy-back signals that the large investor believes the company will not do well in the future.
B) A targeted share buy-back essentially transfers value from the average investor to the targeted investor.
C) Investors believe that the company's management is entrenching itself by buying off any large block shareholders.
D) Both a and c are possible explanations.