Beleaguered Hewlett Packard landed on the Fast Money trader radar largely due to chatter that Oracle might be looking to make an offer.
In an interview on CNBC, Nomura analyst Rick Sherlund made a stunning call. He said, “There's been speculation that Oracle could have an interest in Hewlett Packard. I ran the numbers, they could pay a 50% premium and it would be 30% accretive.”
Although anything is possible, the Fast traders are skeptical.
”Interest rates are near zero for a borrower such as Oracle, explains Karen Finerman, so they can afford to pay a big premium. But that doesn’t mean they’ll do it."
However, "CEO Larry Ellison is a bit of a wild card. You never know what he'll do, but I think they can stay on the sidelines and just watch HP blow themselves up."
Guy Adami agrees that the most likely scenario is that Oracle does nothing. ”A 50% premium seems a little high to me,” he says.