Barron's Good Takeover Targets 7-2-07
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Date updated:06-30-2007

From Barron's 7-2-07:

"Wall Street's worries about the financing of giant leveraged buyouts have depressed the shares of takeover targets, creating opportunities for investors willing to bet that the deals will be completed.

Pending LBOs could require up to $300 billion in financing, prompting concern about the willingness of banks and high-yield investors to absorb that mountain of debt. In the face of such uncertainty, investors now can earn 10%-plus returns on such targets as Harrah's Entertainment (ticker: HET), Alltel (AT), Alliance Data Systems (ADS) and First Data (FDC).

"The market is about as attractive as we've seen in a while," says Mike Shannon, co-manager of the $1.9 billion Merger Fund (MERFX), an arbitrage fund. He says the annualized return on about 150 targets worldwide is about 15%, versus 12% just a week ago."

symbol name last price % change open
  • +
  • ASN
    Asn
  • $0.00
  • N/A
  • $N/A

From Barron's 7-2-07: "Archstone-Smith (ASN), an apartment REIT, is due to be purchased in a $13 billion LBO at $60.75 a share. Its shares have dropped to $59.10 from a June high of $62, as investors figure there will be no topping bid."

People owning ASN also tend to own: AOBBBCCEOERFHLXLONGPTEN

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  • +
  • XMSR
    Xm Satellite Radi
  • $0.00
  • 0.00%
  • $N/A

From Barron's 7-2-07: "One deal with a wide arbitrage spread involves XM Satellite Radio, which has agreed to merge with its only direct competitor, Sirius Satellite Radio. XM trades at $11.70, $2 below the value of Sirius' all-stock offer, because of worries that the accord may blow up on antitrust grounds, sending XM shares tumbling."

People owning XMSR also tend to own: APSGCYTRADZMHATVISTJAAPL

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  • +
  • TRB
    Trb
  • $0.00
  • N/A
  • $N/A

From Barron's 7-2-07: "Another deal worrying Wall Street involves Tribune, the newspaper and broadcasting company being purchased by real-estate tycoon Sam Zell in an LBO for $13 billion, or $34 a share. A month ago, Tribune bought 126 million of its shares at $34 and plans to purchase the remaining 117 million outstanding at $34 by year end...Investors' fears about Zell's ability to complete the transaction have sent Tribune down to $29.50 from $33 a month ago."

People owning TRB also tend to own: AIGCGCILUKMROMSFTPFE

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  • +
  • FDC
    Fdc
  • $0.00
  • N/A
  • $N/A

No Analysis added

People owning FDC also tend to own: BHSDGFAGIXINTCJHMNIMPX

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  • +
  • AHO
    Aho
  • $0.00
  • N/A
  • $N/A

No Analysis added

People owning AHO also tend to own: APFCAQCHLGFGIMHBCHTX

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  • +
  • HET
    Het
  • $0.00
  • N/A
  • $N/A

No Analysis added

People owning HET also tend to own: ANNAPCBLKBRK-ABSXCCUCECO

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  • +
  • AT
    At
  • $0.00
  • N/A
  • $N/A

No Analysis added

People owning AT also tend to own: PRNEXWINAEELUVMIMTBNWS-A

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  • +
  • ADS
    Alliance Data Sys
  • $59.10
  • -1.29%
  • $59.38

No Analysis added

People owning ADS also tend to own: RSTISSDAAPLGOOGPDSUNHAMR

TheStreet.com Rating: C+ What is this?

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