To Hell And Back
Sometimes a deal from hell can become one hell of a deal. Following are three takeover stories that could be worth a trade.
Microsoft / Yahoo!
Yahoo Chief Executive Jerry Yang said Wednesday a potential deal with Microsoft has tremendous power, but the software giant appears no longer interested in a full merger.
In his most public comments to date about his thinking on the four-month-old, on-again, off-again Microsoft merger saga, Yang signaled his company remained open to a potential deal, but said Microsoft had ruled out a merger for now.
Earlier this month, Microsoftwalked away from a proposal to acquire Yahoofor $47.5 billion, or $33 per share, after Yahoo rebuffed its offer, saying it would only settle for $37 a share.
How do you trade it?
I think Yahoo emerges from this mess either married or dead, says Jeff Macke. Microsoft is my play.
I agree, says Guy Adami. Look at Microsoft .
Boston Scientific / Guidant
In January of 2006 MSNBC reported Guidant Corp. jilted longtime suitor Johnson & Johnson in favor of a $27.2 billion offer from rival Boston Scientific ending one of the most highly charged bidding wars in years.
The move capped nearly two months of negotiations and sweetened deals from J&J and Boston Scientific, which saw the Indianapolis-based company as an opening to the $10.3 billion cardiac device market.
But Guidant also is grappling with months of product recalls and is less than a month away from the first of what could be several product liability trials. Securities analysts say it ultimately could be liable for as much as $2 billion in damages.
How do you trade it?
Look at Boston Scientific, says Karen Finerman. They’ve now made meaningful in-roads from the merger and could really benefit going foreward.
Hewlett-Packard / Compaq
Six years after Hewlett-Packard and Compaq merged, HP is flourishing as the world's leading personal computer maker. But success took time and has meant less prominence for the Compaq brand name.
And Carly Fiorina lost her job over this deal, reminds Guy Adami.
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Trader disclosure: On May 29, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders: Adami Owns (BTU), (C), (AGU), (NUE), (GS), (INTC), (MSFT); Finerman Owns (GS); Finerman's Firm Owns (MSFT), (SUN), (TSO), (VLO), (AAPL); Finerman's Firm Owns SPX Index Puts; Finerman's Firm Is Short (BIG); Finerman's Firm And Finerman Own (C) And (C) Leaps; Finerman's Firm And Finerman Own (GLNG); Finerman's Firm Is Short (IYR), (IJR), (MDY), (IWM), (SPY Pete Najarian Owns (AAPL), (ANR), (BHI), (TSO), (XTO), (XLF), (HPQ), (BKC) (MAS), (ENER), (SYMX) (SVNT)
Pete Najarian Owns (BAC) Puts