Expect 2012 Increase In Merger Activity, Pro Says

Fast Money Portfolio
Fast Money Portfolio

More merger and acquisitions are likely in the second quarter and throughout the rest of 2012, one strategist said Monday.

“We’re going to see more transactions. My theme all along for the past two years has been: Because of the economic standpoint that we are in a global cycle, we’re going to see more consolidation,” Sachin Shah, special situations and merger arbitrage strategist at Tullett Prebon said on “Fast Money.”

“There is a lack of growth, essentially, with some of the companies, and they’re basically looking for acquisitions,” he added.

One company Shah said he liked was Jaguar Mining.

A would-be buyer, Shandong, has reportedly made a $9-per-share bid for the company that operates primarily in Brazil.

Shah said Jaguar, which closed at $5.18 per share, held a potential 50-cent downside and more than $4 in possible upside.

Although other deals have been troubled by a lack of transparency, Shah said this was one easier to verify because of its location.

“The assets are in Brazil,” he said. “They’re not in some remote place.”

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CNBC.com with wires.

Trader disclosure: On March 26, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders: Joe Terranova is long VRTS; Joe Terranova is long NXPI; Joe Terranova is long IBM; Joe Terranova is long MCD; Joe Terranova is long EMC; Joe Terranova is long MSFT; Joe Terranova is long JOY; Joe Terranova is long OXY; Joe Terranova is long LQD; Joe Terranova is long POT; Joe Terranova is long TBT; Joe Terranova is long HIBB; Jon Najarian is long call spreads in AAPL; Jon Najarian is long call spreads in JPM; Jon Najarian is long call spreads in JOY; Jon Najarian is long call spreads in IBM; Jon Najarian is long call spreads in RIG; Jon Najarian is long call spreads in AMZN; Jon Najarian is long call spreads in QCOM; Jon Najarian is long MPC; Jon Najarian is long OAS; Jon Najarian is long WLL; Jon Najarian is long ARNA; Jon Najarian is long VVUS; Jon Najarian is long CIGX; Jon Najarian is long CBOE; Jon Najarian is long CME; Guy Adami is long C; Guy Adami is long GS; Guy Adami is long INTC; Guy Adami is long AGU; Guy Adami is long MSFT; Guy Adami is long NUE; Guy Adami is long BTU; Brian Kelly is long MS; Brian Kelly is long XLF; Brian Kelly is long SMH; Brian Kelly is long QQQ; Brian Kelly is long SPY; Brian Kelly is long IWN; Scott Nations is long SPY; Scott Nations is long C; Scott Nations is long BAC;

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Bernstein currently makes a market in QCOM

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