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The Word On Merger Mania

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The headline: Takeover Speculation At Fever Pitch As Yahoo! (YHOO), Dow Jones (DJ) and Reuters (RTRSY) Shares Surge This Week On Buyout Talk; Is There Any Chance That "YahooSoft" Will Become A Reality?

Susquehanna Chief Options Strategist Stacey Briere Gilbert joins the guys for this conversation.

Dylan Ratigan asks about speculation surrounding a Yahoo! (YHOO) and Microsoft (MSFT) merger.

Gilbert explains over 1 million contract options traded Friday, and it looks like investors are still bullish on Yahoo! but deal expectations have moved substantially lower.



Jeff Macke calls the potential merger desperate. He says it doesn’t make a lot of sense.

Eric Bolling says the takeaway from this story is that there is a lot of liquidity in the market, and companies are looking to merge.

Gilbert agrees. “Over the past year there are over 80 deals that have been announced that have yet to close.”

Dylan Ratigan asks about speculation surrounding News Corp’s (NWS.A) bid to buy Dow Jones (DJ) .

Gilbert says the market is looking at a 40% probability that DJ stock is above $60 in the next 6 weeks. (It closed at $55.80 on Friday)

Dylan also asks about Jefferies Group (JEF) which closed at an 11-month high.

Gilbert says there’s a 25% chance of a $5 dollar move in the stock. (JEF closed at $32.94 Friday)

Dylan says that’s a huge expectation.

Symbol
Price
 
Change
%Change
JEF
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FOXA
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AABA
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Questions? Comments? fastmoney@cnbc.com

Macke Owns (JWN), Strazzini Owns (MPEL), (NWS-A), (YHOO) Bolling Owns (NMX), (DIS), (MPEL), Gold, Silver, S&P Futures, S&P Options, Nasdaq Futures, Nasdaq Options

Stacey Briere Gilbert is Chief Options Strategist For Susquehanna Financial Group, LLLP; Gilbert Is Head Of Market Intelligence Research For Susquehanna Financial Group, LLLP; Gilbert Does Not Cover Individual Securities, But Does Recommend Trading Strategies; Susquehanna Financial Group Is An Options Specialist In (SUN); Susquehanna Financial Group Is An Options Specialist In (JEF); Susquehanna Financial Group Is An Options Specialist In (DJ); Susquehanna Financial Group Is A Market Maker And Options Specialist In (YHOO); Susquehanna FInancial Group Is A Market Maker And Options Specalist In (MSFT)

Pali Capital Acts As An Underwriter In The Public Offering Of Securities And Structured Products; Strazzini's Statements Are Not An Endorsement Of Such Securities Or Structured Products; Strazzini's Statements Are Not An Endorsement Of Any Offering Of Such Securities Or Structured Products

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