Monday, November 20, 2006

Monday Morning Musings

Good Monday Morning. It sure was a busy weekend for deal making.

Freeport-McMoRan (FCX) announced it will acquire Phelps Dodge (PD) for $25.9 billion in cash and stock. That equates to roughly $126.50 per share, a 33% premium to Friday's close. Amazing, considering recent trends in copper prices.

Equity Office Properties (EOP) agrees to be acquired by The Blackstone Group for $36 billion. This equates to roughly $48.50 per share, 8% above Friday's close. What does this say about Sam Zell's view of real estate?

Evraz Group will acquire Oregon Steel (OS) for $63.25, a slight 7% premium to Friday's close. And BofA will acquire Schwab's U.S. Trust division for $3.3 billion.

These deals make it tough to stay short stocks over the weekend. I nearly took a short position in PD recently, but didn't. Better to be lucky than good sometimes.

In other news and notes:
  • Demand for AAPL's new iPod Shuffle is soaring
  • Merrill ups RIMM tgt. to $165
  • VAR authorizes another 4.5M share buyback
  • Large insider selling by CEO of MSTR
  • FDA approves sale of silicone gel implants (AGN, MNT)
  • LOW beats EPS, lowers guidance
  • Japan's stock market falls -2.3%, most in 10 weeks

long AAPL, VAR


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