The Mill – Separating Fact from Fiction: Nabors, Health Care M&A

In our new segment the Fast pros break down the stories they’re hearing on the floor. What are the odds?

Transocean - Nabors Deal In The Works?

Peer into the dark corners of the trading floor and you’ll spy pros speculating about a possible deal between Transocean and Nabors.

What are the odds?

According to OptionMonster Jon Najarian the chatter is more likely true than not.

”The rumor has been around a while,” Najarian tells us “But the recent options activity in RIG as well as rivals suggest there’s a lot of focus on the space. I’m thinking the speculation is more fact than fiction.”


Healthcare M&A

On Monday Cigna said it planned to buy HealthSpring for $3.8 billion. The deal triggered talk that it was just the beginning of M&A in the space.

What are the odds?

Trader JJ Kinahan says the speculation is more likely true than not.

“And the interesting one in the space is Humana,” he says. He thinks it could either be acquired or be an acquirer.



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Trader disclosure: On Oct 21, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Kinahan is long stock/short options BAC; Kinahan is long stock/short options C; Kinahan is long through options GS; Karabell is long AAPL; Karabell is long GOOG; Karabell is long MS; Karabell is long IBM; Karabell has short puts on AMZN; Karabell is long FCX; Karabell is long MSFT; Karabell is long CAT; Karabell is long FDX; Grasso owns AA; Grasso owns AKS; Grasso owns ASTM; Grasso owns BA; Grasso owns BAC; Grasso owns D; Grasso owns KEG; Grasso owns LIT; Grasso owns MHY; Grasso owns PFE; Grasso owns PRST; Grasso owns S; Grasso owns XLU; Najarian has short calls on CAT; Najarian has short calls on CNX; Najarian has short calls on MMM; Najarian has short calls on NUAN; Najarian is long CME; Najarian is long CBOE; Najarian is long CIGX

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