Traders Floating Rumors Like 'Chum In Water'
The recent momentum of M&A activity in the market is spurring speculation as traders increasingly spread takover rumors, according to CNBC's Fast Money blog.
“It’s been an easy environment for some traders to get rumors started due to the acceleration of activity,” said Pete Najarian, a 'Fast Money' host and founder of OptionsMonster.com. “It’s like chum in the water.”
With companies sitting on reocord amounts of cash and significant takeover bids in the works, including BHP's $130 a share bid on the table by BHP Billiton for fertilizer maker Potash and Bristol-Myers $9.75 bid for biotech ZymoGenetics, it's no wonder the rumors are rampant.
“The speculation is out of control and this will end badly with all else held constant,” said Michael Block, chief equities strategist for Phoenix Partners Group. > Read More at CNBC.com