Fast Money: Rapid Recap - The first and only official show synopsis
RSS FEED
RECENT POSTS
- Your First Move For Wednesday May 30th
- Digital Generation Bottomed Out: Finerman
- Keystone Pipeline Could Begin Construction in Q1 2013
- Strategic Review No Reason to Buy RIM: Pros
- See Fast Money Live from Chicago - Thursday June 7th
- Your Next Trades: RIM, Energy and Newmont
- Burned by the Homebuilders ETF
- Downside in Facebook May Continue to $25: Options Pro
FAST MONEY FEATURES
FAST MONEY POLLGet in the post game. Respond to our "Question of the Day" right now.
TRADE SCHOOLGrab a pencil because school is in session and the Fast Money traders are teaching class.
FAST MONEY PODCASTSDownload Fast Money onto your MP3 Player.
FAST MONEY WIDGETGrab this all-in-one application and get recaps of the show sent right to your desktop or blog.
SHOP FOR FAST MONEY MERCHANDISEGet your game on with Fast Money gear.
FAST MONEY PHOTOS!Check out our scrapbook. These "pix" are guaranteed winners.
NEWSLETTERSign up and receive a daily email from the Fast Money team!
FAST MONEY MOBILE ALERTSGet advanced information about the next Fast Money.
Semantics Suggest Higher Bid Ahead for Illumina: Finerman
Text Size 
Producer
 |
On Wednesday pharma investors were trying to figure out if a nearly $6 billion dollar deal was about to go down in flames.
That was the chatter after Illumina [ILMN
Loading...
()
] rejected a takeover offer from Roche [RHHBY
Loading...
()
] saying the bid was inadequate and that it would be more successful on its own.
Illumina - which has already adopted a "poison pill" defense strategy - told shareholders not to tender any of their shares to Roche, saying the offer was grossly inadequate; that it failed to properly value its unique leadership position and future growth prospects. Also Illumina said the timing was unfair to shareholders.
Roche, which offered to pay $44.50 per share when it launched the bid for Illumina last month, reiterated on Wednesday that it believed its offer was "full and fair" and that it was ready to start discussions with Illumina.
Is the deal dead on arrival?
Although it may sound that way on the surface, trader Karen Finerman says in these situations it’s important to parse through the language used in their response.
And she thinks the semantics used were selected intentionally. Here’s her breakdown:
Buzzword Translation
Illumina: ‘offer grossly inadequate’ ‘just say no’ defense
Illumina: ‘inopportune time’ not for sale right now
Illumina: ‘we’re unique’ pay up!
Roche: offer is ‘full and fair’ not ‘best or final’ offer
Roche: ready to commence discussions we’ll pay more
If you’re an investor, the most important part of the chart is that last line.
“Ultimately, I think we see a higher bid,” she says “I suspect Roche threw out the bid knowing they’d have to bid higher.”
She adds “I’m long the stock. I agree that it's a unique asset and warrants more.”
Pete Najarian agrees. “I also think we see the bid increase.”
- Digital Generation Bottomed Out: Finerman
- See Fast Money Live from Chicago - Thursday June 7th
- Desperately Seeking Dividend Yield
- Tech Is Trying to Tell You Something: Terranova
- Charts Suggest S&P Revisits Flat on Year: Top Analyst
- Airlines Taking Flight?
- Three Stocks For Thursday
- Next Stop for Oil - $88.55
- QE3 Likelihood Still ‘Pretty Good’: Jan Hatzius
______________________________________________________
Got something to to say? Send us an e-mail at and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment, but not have it published on our Web site, send those e-mails to
Trader disclosure: On Feb. 8, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders: Seymour is long AAPL; Seymour is long BAC; Seymour is long CSCO; Finerman is long AAPL; Finerman is long BAC; Finerman is long JPM; Finerman is long IBM; Finerman is long HPQ; Finerman is long NTAP; Finerman is long CMI and short calls; Najarian is long AAPL; Najarian is long BAC calls; Najarian is long C; Najarian is long JPM calls; Najarian is long MS; Najarian is long CSCO and long calls; Najarian is long YHOO; Najarian is long HPQ; Najarian is long WFM calls; Najarian is long V calls; Murphy is short WHR;
For Ron Insana
No disclosures
For Karen Short
(WFM) BMO Capital Markets or an affiliate received compensation for products or services other than investment banking services within the past 12 months. This issuer is a client (or was a client) of BMO Nesbitt Burns Inc., BMO Capital Markets Corp., BMO CM Ltd. or an affiliate within the past 12 months: Non-Securities Related Services.
BMO Capital Markets makes a market in this security (WFM).
For Aaron Kessler
No disclosures
CNBC.com with wires.
Data is a real-time snapshot *Data is delayed at least 15 minutes
