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Breaking News: Verizon Inks Takeover Deal

After the close Thursday, Verizon said it had offered to buy IT services provider Terremark for $19 a share in cash, or $1.4 billion.

The offer represents a 35 percent premium over Terremark's closing share price of $14.05 on Thursday. Verizon said it expects to close the tender offer late in the first quarter of 2011.

According to published reports, Verizon said the purchase would assist its efforts to develop cloud-based computing services, or “everything-as-a-service” offerings.

Is there any opportunity here for traders?

I’d wait to find out if Terremark was a full auction or if they only talked with Verizon, says trader Karen Finerman. If the company was not shopped it wouldn’t surprise me to hear about a competing bid.




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Trader disclosure: On Jan. 27, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Joe Terranova is short Gold. Joe Terranova Owns (VRTS), (C), (UPL), (GM), (PEP), (TLT), (MS), (POT), (AAPL), (ARUN), (LTD), (PVH), (CVI), (CVE), (CPX), (CNQ) and (FCX). Karen Finerman owns (AAPL), (BAC), (MSFT), (GOOG), (HPQ), (C) and (BP). Karen Finerman owns (JPM) and (JPM) leaps. Jon Najarian owns (FRO), is short (FRO) calls. Jon Najarian owns (F), is short (F) calls. Jon Najarian owns (GM), is short (GM) calls. Jon Najarian owns (GS), is short (GS) calls. Jon Najarian owns (MOS), is short (MOS) calls. Jon Najarian owns (WMT), is short (WMT) calls. Jon Najarian owns (VZ), is short (VZ) calls. Jon Najarian owns (SNDK), is short (SNDK) calls. Stephen Weiss owns (PZN), (SMCI), (MWA), (AGU), (FAS), (JPM), (DVN), (COP), (DZZ), (MSFT), (QCOM), (HPQ), (FWLT) and (V). Stephen Weiss is Short (GDX). Stephen Weiss is short (GLD).

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JOE TERRANOVA
Terranova is Chief Market Strategist of Virtus Investment Partners, LTD
Virtus Investment Partners Owns More Than 1% Of (ABAX)
Virtus Investment Partners Owns More Than 1% Of (AMKR)
Virtus Investment Partners Owns More Than 1% Of (CCG)
Virtus Investment Partners Owns More Than 1% Of (CASS)
Virtus Investment Partners Owns More Than 1% Of (CSVI)
Virtus Investment Partners Owns More Than 1% Of (EXR)
Virtus Investment Partners Owns More Than 1% Of (FCFS)
Virtus Investment Partners Owns More Than 1% Of (IGE)
Virtus Investment Partners Owns More Than 1% Of (KRC)
Virtus Investment Partners Owns More Than 1% Of (LDR)
Virtus Investment Partners Owns More Than 1% Of (LPHI)
Virtus Investment Partners Owns More Than 1% Of (NCRI)
Virtus Investment Partners Owns More Than 1% Of (DBV)
Virtus Investment Partners Owns More Than 1% Of (XLB)
Virtus Investment Partners Owns More Than 1% Of (XLV)
Virtus Investment Partners Owns More Than 1% Of (XLP)
Virtus Investment Partners Owns More Than 1% Of (XLY)
Virtus Investment Partners Owns More Than 1% Of (XLE)
Virtus Investment Partners Owns More Than 1% Of (XLI)
Virtus Investment Partners Owns More Than 1% Of (XLK)
Virtus Investment Partners Owns More Than 1% Of (XLU)
Virtus Investment Partners Owns More Than 1% Of (SUBK)
Virtus Investment Partners Owns More Than 1% Of (WDFC)
Virtus Investment Partners Owns More Than 1% Of (YDNT)
Virtus Investment Partners Owns More Than 1% Of (CLB)

KAREN FINERMAN
Finerman's firm is short (MDY)
Finerman's firm is short (SPY)
Finerman's firm is short (IWM)
Finerman's firm is short (IJR)
Finerman's firm is long S&P puts
Finerman's firm is long Russell 2000 puts
Finerman's firm owns (AAPL)
Finerman's firm owns (BAC) leaps
Finerman's firm owns (BBY)
Finerman's firm owns (BP)
Finerman's firm owns (HPQ)
Finerman's firm owns (IBM)
Finerman's firm owns (JPM) and (JPM) leaps
Finerman's firm owns (MCD)
Finerman's firm owns (MSFT)
Finerman's firm owns (WMT)

COLIN GILLIS
BGC Financial LP and/or its affiliates, expect to receive, or intend to seek, compensation for investment banking services within the next three months from (MSFT)
BGC Financial LP and/or its affiliates, expect to receive, or intend to seek, compensation for investment banking services within the next three months from (AMZN)

RON SHAH
Ron Shah has no disclosures

BRIAN STUTLAND
Stutland Securities is a Market maker holding positions in VIX futures and options
Stutland Securities is a Market maker in SPX
Stutland Securities is a Market maker holding positions in VXX options and stock

DAVID MILLER
Miller has no disclosures

JON NAJARIAN FAST FIRE 12/17/10
Jon Najarian had no disclosures for (COH) or (PFE) on 12/17/10

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