Through The Fly's Eyes: Rumor Mill

from Tedd Cohen of Theflyonthewall.com











Rumor Round-up

It may be Independence Day week, but it appears that there are a number of companies willing to sell their independence to the highest bidder.

XM SATELLITE (XMSR)

Word is that there’s more than one bid out for the satellite radio company. We know about the merger agreement with Sirius Satellite Radio (SIRI), so who’s the other party? Or, is there another party? Some are convinced it’s just talk. No names are even floating around. But for XM to walk away from Sirius would cost them a $175M break-up fee. They’d have to really be serious about another offer to do that.

BUILDING MATERIALS (BLG)

In May, Robert L .Chapman of Chapman Capital, the “activist investor”, said Building Materials Holding Corp. should consider selling all or parts of itself. Then he upped his stake to 8.1% in the residential construction services provider. Now comes word that the company may have hired, or be in the process of hiring, a strategic advisor.


STILL FLYING AROUND

QUEST DIAGNOSTICS (DGX)

There’s renewed speculation that the U.S. medical testing company is ready to be purchased. Shares have been up; option volume is busy. Quest, of course, isn’t talking. But this one has been around for months.

MACY’S (M)

The stock is moving higher again amid continued speculation of a takeover.


BUZZ

Cyberonics (CYBX): The medical devices maker has fallen short of Wall Street expectations and the stock is sputtering along. Some analysts say holders of the stock should get out. But maybe not yet, as word has spread that the company may be in the final stages of selling itself…Archer Daniels (ADM) is said to have hired a strategic advisor…Travelzoo (TZOO) continues to be the subject of a possible takeover, as are Juniper (JNPR), Jefferies Group (JEF) and Cleveland Cliffs (CLF).