No. 2 - Takeover-o-Rama

The markets may have been quiet today, but Merger Monday was far from dead. Alcoa (AA) hit a 6-year high on talks of a takeover bid from BHP Billiton (BHP); General Electric (GE) and Pearson (PSO), publisher of the Financial Times, have potentially joined the fray in the News Corp. (NWS)/Dow Jones (DJ) bidding war; and hamburger chain Wendy’s (WEN)said it was open to a possible sale.

Eric Bolling says BHP better just hurry up and buy Alcoa already because everytime the rumors start, AA’s stock price goes higher. If Alcoa goes, Pete Najarian says, expect another metals company like Cleveland-Cliffs (CLF) or Ryerson (RYI) to go soon after.

And the talk of a GE/Pearson partnership to buy Dow Jones is a defensive play, Eric says, and it wouldn’t be much more than a trophy acquisition. News Corp. put too high a price tag on Dow Jones considering how little growth the company has, Jeff Macke says. He isn’t sure GE could justify paying such a high price if it ever came down to that.

Wendy’s stock actually ticked lower today even as it conceded it was for sale. Jeff would rather get long Chipotle (CMG), McDonald’s (MCD) or CKE Restaurants (CKR).Anything is better than Wendy’s in the fast food space, he says.

Trader disclosure: On June 18, 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 (CHU), (MS); Bolling Is Short (FXI) and owns (FXI) Puts
GE is the parent company of CNBC
CNBC is a service of NBC Universal and Dow Jones

Got something to say? Send us an e-mail at and your comment might be posted on the Rapid Recap! Prefer to keep it between us? You can still send questions and comments to