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More Retail M&A On The Way?

Tuesday, 23 Nov 2010 | 5:31 PM ET

The traders suggest keeping a close eye on the retailers after JCrew confirmed reports that it is being bought by a pair of private equity groups.

TPG Capital and Leonard Green & Partners agreed to pay about $3 billion for the retailer, or $43.50 per share - a 16% premium above the closing price Monday.

What must you know about the deal going forward. Karen Finerman is long JCrew and intends to remain long. Find out why. Watch the video now!

Finerman's Fine Print: J. Crew
Karen Finerman discusses whether other bidders will step in the J. Crew deal.


















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We also spoke with Piper Jaffray analyst Jeffrey Klinefelter about other companies similar to J Crew that might be the right size and the right multiple to be takeout targets.

Here's his list:

Retail Take-Out Possibles... at 7x EV/EBITDA (similar to J Crew deal)

Upside From Yesterday’s Close
Gap +44%
Aeropostale +51%
American Eagle +31%
Hot Topic +50%
The Wet Seal +63%
Source: Piper Jaffray

Check out our entire conversation with Klinefelter. Watch the video now!

If the Rest of Retail Was Taken Out?
A look at the other retailers that could be bought, with Jeffrey Klinefelter, Piper Jaffray analyst.



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Trader disclosure: On November 23, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Seymour Owns (AAPL), (BAC), (BX), (TSO), (HPQ), (FXI); Finerman's Firm Is Short (WAG; Najarian Owns (BAC); Najarian Owns (GDXJ) Call Spread; Najarian Owns (MS); Najarian Owns (NUAN) Calls; Najarian Owns (PFE); Najarian Owns (YHOO); Najarian Owns (CRUS); Najarian Owns (WLT) Call Spread; Najarian Owns (MEE) Call Spread; Najarian Owns (TEVA); Najarian Owns (CNI); Najarian Owns (AKAM) Call Spread; Najarian Owns (DO); Najarian Owns (DOW); Najarian Owns (FIRE); Terranova Owns (UPL), (C), (PEP), (VRTS), (OXY), (GS), (FCX), (IBM), (CRM), (MCD), (NKE), (AAPL); Terranova Owns (CRM) Puts; Terranova Owns (FCX) Puts; Finerman's Firm Is Short (IJR); Finerman's Firm Is Short (MDY); Finerman's Firm Is Short (SPY); Finerman's Firm Is Short (IWM); Finerman's Firm Is Long S&P Puts; Finerman's Firm Is Long Russell 2000 Puts; Finerman Owns (AAPL); Finerman's Firm Owns (AEO); Finerman's Firm Owns (ARO); Finerman Owns (BAC); Finerman's Firm Owns (BP); Finerman Owns (BX); Finemran Owns (DYN); Fnierman's Firm And Finerman Own (HPQ); Finerman's Firm And Finerman Own (JCG); Finerman's FIrm And Finerman Own (JPM); Finerman's Firm Owns (M); Finerman's Firm And Finerman Own (MSFT); Finemran's Firm Owns (SKS); Finerman's Firm Owns (TGT); FInerman Owns (USO); Finerman's Firm Owns (WMT); Steve Cortes is short (UNP), (CSX), Nasdaq Futures, (AAPL) and corn. Steve Cortes is long 2 Year Notes, U.S. Dollar vs. Mexican Peso, Australian Dollar, Canadian Dollar. Steve Cortes Owns (TSN) and (K).

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Baker And Baker Avenue Asset Management Own (ODP)
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Baker And Baker Avenue Asset Management Own (IBM)
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For Jeff Klinefelter
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Principal Basis (ANF), (ARO), (AEO), (GES), (GPS), (JCG), (JCP), (KSS)

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