Buyout Plays in a Bloodied Markethttp://www.fool.com/investing/high-growth/2008/10/24/buyout-plays-in-a-bloodied-market.aspx Anders Bylund
October 24, 2008
Baron Nathan Mayer de Rothschild told us all to "Buy when there's blood in the streets!" That maxim makes tons of sense today for individual investors -- but it applies just as well to mergers and acquisitions.
I thought that proverb was about investing!
So when the market takes a 35% haircut in one year, and 23% in one tiny month, you're drooling over all that delicious sanguine sauce flowing between Broadway and South Street. Strong companies with deep pockets are doing the same, because growth by acquisition is still growth, and they see some of the best buyout opportunities in decades.
Let's have a look at some of the Wall Street hunters and their prey.
The usual suspects
Virtualization expert VMware (NYSE: VMW ) has also seen its market cap evaporate; its stock price has declined more than 80% in the past year. At roughly $8 billion, its current market cap seems like a very affordable morsel for one of the software giants. But Microsoft probably wouldn't get past antitrust concerns, any more than Google could buy Yahoo! outright. Many of the other true titans of the industry face the same obs