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Icahnic Investing

For the last year or so, Cramer has been making a bold prediction: Oracle will buy BEA Systems . It's only a matter of price, he has said.

On Friday, Carl Icahn acknowledged that Cramer was "right on" with his call. "Jim had it pegged," he said.

BEA got a massive $17 per share takeover bid from Oracle BEA then denied it was for sale and the stock got downgraded with analysts saying the likelihood of a sale was diminishing. But Icahn, BEA’s biggest shareholder, didn’t sell.

Speaking to Cramer by telephone, Icahn said he thinks BEA is worth “a lot more” than $17 per share. The company has strong technology and should “definitely be sold,” Icahn said. He believes it would be a terrific strategic acquisition for a company like Oracle, but if Oracle passes, Icahn told Cramer he could see BEA fitting in well with Cisco , Hewlett-Packard or IBM . “This is the first round,” he said. “And that’s what I’m hopeful about.”

Icahn also opined on another of his major holdings – the oft-beleaguered Motorola . Icahn said he believes strongly that Motorola has “great value” and should be split up.

Icahn’s confidence in MOT is enough for Cramer to come around on the stock. “This is the greatest value investor of our era,” Cramer said of Icahn. There’s nothing wrong with piggybacking on his investments.


Jim's charitable trust owns Hewlett-Packard.

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