Halftime: Is A Stealth Buyer for Ralcorp Lurking?

On Friday investors were chattering about Ralcorp , the company behind cereals such as Grape Nuts and Honey Bunches of Oats as potentially on the auction block.

According to CNBC’s Kayla Tausche, rival Conagra sent a letter to the board of Ralcorp making an unsolicited offer to buy the company.

”The approach was made about 2 months ago,” she says.

Looking at whether the deal might actually get done, Tausche notes that the stock has made significant gains since that time, which could complicate pricing.

What should you make of these developments?

Instant Insights with the Fast Money traders

Fast trader Joe Terranova thinks Ralcorp is in the sweet spot, in terms of market cap, for a takeover. “With a market cap of $4-5 billion the deal can easily get (financing.) I see a high possibility of it happening,” he says.

In other words, a deal could happen if Ralcorp wants it to happen. Tausche adds that there are “no ongoing discussions.”

If talks between ConAgra and Ralcorp are not ongoing, trader Patty Edwards thinks that Sara Lee could step in, “even though they’re going through their own issues.”

As you may remember Sara Lee made headlines earlier this year by announcing plans to spin-off its meat business as a new company.

Jon Najarian largely agrees. “It’s a two horse race,” he says.

On a January conference call, Sara Lee CEO Marcel Smits had said the spin-off would give the companies more freedom to seek acquisitions.

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RICH ILCZYSZYN: SILVER COULD PRINT $60

Turning attention to commodities, you might remember on Tuesday Rich Ilczyszyn of Lind-Waldock thought the path of least resistance for silver was lower; but also said he remained a long-term bull.

Although silver didn’t touch $40 as he forecast, he thinks in the wake of comments made by Ben Bernanke silver could now print $50.

”And if we close above the 1980’s highs I think silver keeps going into uncharted territory around $60.”

Jon Najarian suggests that at least some options investors are skeptical. He’s seeing heavy volume in the double short ETF ZSL . “I think folks are hedging,” he says.

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UNUSUAL ACTION: CELGENE

Elsewhere in the market, Jon Najarian has spotted unusual option action in Celgene .

A larger than usual volume of call buying suggests to Najarian that the stock could make a sharp move higher.

”It’s a well run company,” he says. “and now takeover rumors have surfaced,” Najarian explains. “People are betting some news will break over the week-end.”

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CRUDE HISTORY

April will likely go down in the history books – at least as far as energy traders are concerned. If crude ends the month with gains, (and it likely will) it will be the 8^th consecutive month of gains. That would be the longest run of monthly increases since 1983 when the light sweet crude contract was introduced on the New York Mercantile Exchange, according to Reuters data.

How should you position?

Joe Terranova is bullish Exxon, Apache and Occidental. “I see no reason not to own them. As long as oil sustains above $95 these names all work.”

Patty Edwards recommends oil services names such as Baker Hughes. “Or just own the OIH,” she says.

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DOLLAR WOES

With the dollar index hovering near 3-year lows, will the weak dollar remain positive for stock investors? Rebecca Patterson of J.P. Morgan thinks it will.

Get all the details and also her latest currency play. Watch the video now!

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Trader disclosure: On April 28, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Terranova owns ( TCK); Terranova owns (SLV); Terranova owns (NFLX); Terranova owns (APA); Terranova owns (OXY); Terranova owns (FCX); Terranova owns (BAX); Terranova owns (IBM); Terranova owns (HOC); Terranova owns (UPL); Terranova owns (AKAM); Terranova owns (V); Terranova owns (CVI); Terranova owns (BX); Terranova is long (AAPL) April 350 puts; Jon Najarian Owns (AMSC), Is Short (AMSC) Calls; Jon Najarian Owns (BBBB), Is Short (BBBB) Calls; Jon Najarian Owns (CIGX), Is Short (CIGX) Calls; Jon Najarian Owns (HK), Is Short (HK) Calls; Jon Najarian Owns (IBM), Is Short (IBM) Calls; Jon Najarian Owns (AET), Is Short (AET) Calls; Jon Najarian Owns (MS), Is Short (MS) Calls; Jon Najarian Owns (VHC), Is Short (VHC) Calls; Jon Najarian Owns (UA), Is Short (UA) Calls; Jon Najarian Owns (SWKS), Is Short (SWKS) Calls; Jon Najarian Owns (ZSL) Calls; Jon Najarian Owns (CELG) Calls

For Joe Terranova:
Terranova is Chief Market Strategist of Virtus Investment Partners, LTD
Virtus Investment Partners Owns More Than 1% Of (ABAX)
Virtus Investment Partners Owns More Than 1% Of (AMKR)
Virtus Investment Partners Owns More Than 1% Of (CCG)
Virtus Investment Partners Owns More Than 1% Of (CASS)
Virtus Investment Partners Owns More Than 1% Of (CSVI)
Virtus Investment Partners Owns More Than 1% Of (EXR)
Virtus Investment Partners Owns More Than 1% Of (FCFS)
Virtus Investment Partners Owns More Than 1% Of (KRC)
Virtus Investment Partners Owns More Than 1% Of (LDR)
Virtus Investment Partners Owns More Than 1% Of (LPHI)
Virtus Investment Partners Owns More Than 1% Of (NCRI)
Virtus Investment Partners Owns More Than 1% Of (DBV)
Virtus Investment Partners Owns More Than 1% Of (XLB)
Virtus Investment Partners Owns More Than 1% Of (XLV)
Virtus Investment Partners Owns More Than 1% Of (XLP)
Virtus Investment Partners Owns More Than 1% Of (XLY)
Virtus Investment Partners Owns More Than 1% Of (XLE)
Virtus Investment Partners Owns More Than 1% Of (XLF)
Virtus Investment Partners Owns More Than 1% Of (XLI)
Virtus Investment Partners Owns More Than 1% Of (XLK)
Virtus Investment Partners Owns More Than 1% Of (XLU)
Virtus Investment Partners Owns More Than 1% Of (SUBK)
Virtus Investment Partners Owns More Than 1% Of (WDFC)
Virtus Investment Partners Owns More Than 1% Of (YDNT)
Virtus Investment Partners Owns More Than 1% Of (DOM)

For Patty Edwards
Edwards Owns (PM)
Edwards Owns (AAPL) For Clients
Edwards Owns (BA) For Clients
Edwards Owns (GLD) For Clients
Edwards Owns (LEG) For Clients
Edwards Owns (MSFT) For Clients
Edwards Owns (PM) For Clients
Edwards Owns (SBUX) For Clients
Edwards Owns (SLV) For Clients
Edwards Owns (VZ) For Clients
Edwards Owns (WFMI) For Clients
Edwards Owns S&P 500 For Clients
Edwards Owns Nasdaq 100 For Client

For Rich Ilczyszyn
***No Dislcosures

For Rebecca Patterson
***No Disclosures




CNBC.com with wires.