Who's the Next Takeover Target?

Cramer’s made a couple of great calls recently. Back on April 9, he said aQuantive would get a takeover bid, and then came Microsoft with a $6 billion offer. He nailed Alltel, too, which today accepted a $25 billion tender from TPG Capital and Goldman Sachs’ buyout division. So who’s next?

Cramer’s betting on Total Systems Services, yet another processor of credit, debit, commercial and private-label cards he thinks will be gobbled up in a matter of time. In fact, he says the only reason it’s still independent is because TSS is majority-owned by Synovus Financial, a Georgia bank.

You wouldn’t usually see Cramer recommending a subsidiary and its parent, but he thinks that private equity could do for TSS what Blackstone did for Alliance Data Systems. This $32 stock could shoot to $40 if it got an offer.

Synovus has had numerous opportunities to spin off TSS, but this time investors like hedge fund Third Point are agitating for change. Cramer says that could be a deciding factor now.

Takeovers are in the air these days, and with Third Point shaking things up, Cramer feels he has to recommend TSS, which is also cheap on earnings.

Bottom Line: Total Systems Services could be a buy up to $34, Cramer says, but no more than that. You could be rewarded.

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