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No. 2 - Buyouts Gone Wild

Is the buyout boom going wild? If the cockiness of CEO’s are any indication, it might be. Today, aluminum producer Alcan (AL) rejected a $27 billion offer from Alcoa (AA). Meanwhile, the Bancroft family continues to seem unwilling to consider the $5 billion offer from Rupert Murdoch for Dow Jones (DJ).

Now the Dow Jones case is special, we know, but when CEO's start to say "I can do better" has this merger mania reached a fever pitch?

Pete Najarian echoes that Dow Jones is a different animal. Other than Rupert, who wants Dow Jones?

Jeff Macke questions whether Rupert’s first offer is his last offer. And he adds Dow Jones has a fiduciary responsibility to open it up to auction. They would be foolish to do anything else, he says.

The Pit Boss counters this might be the only offer they get. He recommends buying Dow Jones September 45 puts on a bet the stock will drop below $45.

Eric Bolling says just short the stock and forget the puts.

Onto Alcan - Eric Bolling thinks Alcan is out of their minds for rejecting a $27 billion dollar bid from Alcoa. He asks what happens if no one else comes along.

Guy Adami says Alcoa wins whether they get Alcan or not because they become more attractive.

Dylan says the bottom line is buy Alcoa and short Dow Jones.

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Trader disclosure: On May 23, 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders:
Najarian Owns (JPM), (BIIB), (FITB), (OVTI); Bolling Owns (DIS) Gold, Silver, Coffee, Sugar; Bolling Is Short (FXI); CNBC Is A Service Of NBC Universal And Dow Jones