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Where there's smoke, there's often fire. According to the
latest rumors on Wall Street,
) could be the next big-name buyouts.
The fact that YHOO is in the market for a buyer might be the
worst-kept secret on Wall Street. However, within the past few
weeks, details have emerged that could lay the groundwork for a
viable YHOO buyout in the near future.
According to Reuters,
Bank of America
) could provide the necessary financing for
) to step in and acquire YHOO's core Internet business. Citing
"sources familiar with the matter," the report said that VZ hired
the same BAC bankers that had previously been advising YHOO on
the potential divestiture of its massive stake in
VZ hasn't been very secretive about its interest in YHOO. But
if the company now has financing in place for a deal, an
announcement could be imminent.
Last week, major BABA stakeholder SoftBank announced that
it would be divesting $7.9 billion in BA
. Part of the massive sale will take place via the issuance of $5
billion in mandatory exchangeable trust securities convertible
into BABA shares in three years. This framework could also serve
as a blueprint for how YHOO can deal with its BABA stake and
clear the path for a VZ buyout.
Baker Hughes (BHI)
) recently dropped its bid to acquire BHI (and paid a $3.5
billion breakup fee to boot!), but that doesn't mean that BHI is
off the selling block. The cancellation of the HAL deal now means
that BHI is back on the market. There have already been all kinds
of rumors about other potential buyers.
Back in April, JPMorgan analyst
said that a merger between BHI and
) could be "the best route to value creation over the next
J. David Anderson
is one of many speculating that BHI could be "the missing piece"
even said recently that he wouldn't be surprised if BHI draws
buyout interest from integrated oil companies like
RLYP shares have been extremely volatile so far in 2016 amid
on-again, off-again buyout rumors. Back in April, the stock
surged more than 67% in a single day on reports that RLYP was in
talks to review buyout offers. Unfortunately for shareholders, no
deal was ever announced.
Later in April, RLYP stock again surged more than 22% in a
single day on market rumors that
) and/or other larger pharma companies were interested in a
The latest double-digit move in this saga came a
few weeks ago when the FDA rejected AZN's hyperkalemia drug
ZS-9. The market believes that the rejection now makes RLYP's
Veltassa a more appealing buyout target.
Last week, a new report by Mizuho analyst
added fuel to the RLYP buyout rumor fire. Mizuho raised its
price target for RLYP from $12 to $20 following the news from the
FDA and the strong possibility of a buyout.
Disclosure: As of this writing, Wayne Duggan had
no positions in any of the stocks mentioned.
More From InvestorPlace:
3 Stocks That Could Announce Buyouts Any Day Now
(YHOO, BHI, RLYP)
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