There’s no coincidence here, says Jon Najarian. No one stumbled into a trade. Jon suspects the people who talked to David Faber were very close to the people who bought these calls. Even if you dismiss some of the volume as people chasing the options when they see the volume rising, at least $5 million was made in these two days on options that are useless if the deal doesn’t happen, he says.
Karen Finerman, (who is sitting in for Tim Strazzini) says she wouldn’t touch Dow Jones stock and she doesn’t believe this was a “friendly offer” at all. News Corp. probably called the Bancroft family and told them they wanted to make a bid and the family said they weren’t interested.
Now, with it public, the bid is hostile – which is the only way to put the pressure on the Bancrofts to accept, she says. That being said, she doubts the takeover would happen and wouldn’t be long or short Dow Jones stock.
The move makes sense for Rupert, everyone agrees. He’s starting a business channel under the Fox News brand and having the Wall Street Journal and Barron’s assets would help it immensely, Eric Bolling says. However, today’s news brought up all the other newspaper stocks and that doesn’t make sense, he says. Murdoch is clearly only interested in Dow Jones for its specific assets and there’s no reason to think if his bid failed here, he would try it again with another newspaper company. Eric sees this as a selling opportunity.
Jon Najarian agrees: you’d be nuts to be a buyer of any newspaper stock here, he says, and the Wall Street Journal is a great fit for News Corp. but not for any other company.
But everyone at the table seems skeptical the deal will actually go through. If it’s so unlikely, why is the stock still up around $20?
It simply isn’t about the money, Karen says. Even though Jeff thinks Murdoch will probably sweeten the bid, Eric agrees with Karen: the Bancroft family is not viewing this as a question of money and they will probably decline the offer at any price, he says.
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On May 1, 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Bolling Owns (DIS), (NMX), Gold, Silver; Karen Finerman’s Firm Owns (BBI); (ISE), (DVA), Finerman’s Firm Owns S&P Puts, CNBC Is A Service Of NBC Universal And Dow Jones.