Who Wants to Make a Deal?
Yesterday's report that chemical name Huntsman (HUN) was being shopped around to private equity firms by Bank of America sent its shares up 10%. This is certainly not the first time there has been speculation (post the Hexion merger debacle) that this name, which is cheap (trading at less than 6x 2013 consensus earnings estimates), would be taken out. How ironic would it be if Bain Capital, said to be one of the firms Bank of America contacted, ended up doing a deal? Huntsman was founded by Jon Huntsman, Sr., who is the father of the former Republican candidate and current Huntsman board member John Huntsman, Jr. Bain, of course, is Mitt Romney's former firm.
While it's too early to say that a deal will be done for Huntsman, the current environment appears target rich for mergers and private equity deals. In my view, one of the places to look for potential deals is in smallville: names that are unloved or underfollowed that are not able to prosper own their own, but have assets on the books and would appeal to a bigger fish or private equity....353 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.
Already a Subscriber? Please login.