As outsiders, we never get to find out what deals are being talked about on golf courses around the country. But that doesn't mean that Fools can't make a few suggestions to the CEOs we're caddying for. Here are three deals that should happen sooner rather than later.
ExxonMobil and Clean Energy Fuels
After making a big bet on natural gas through its purchase of XTO Energy, ExxonMobil (NYSE: XOM) should be doing everything it can to push the nation into fueling vehicles using natural gas, shouldn't it? So buying Clean Energy Fuels (Nasdaq: CLNE) almost makes too much sense for the company.
Clean Energy Fuels is building out a network of natural gas fueling stations throughout the country and could use a big-name boost to get things going. The current focus on fleets of buses and airport vehicles has given the company a solid footing, but any growth company knows you need capital to grow. The company is trying to get T. Boone Pickens to exercise his options in the company early just so it can get some cash for expansion. If ExxonMobil takes over, cash would not be a problem.
ExxonMobil has shown its commitment to natural gas by purchasing XTO, and a purchase of Clean Energy Fuels would be a drop in the bucket for the oil giant. With a current market cap of less than $1 billion, I'm sure shareholders would take $1.4 billion (40% premium) for their shares in a heartbeat.
3M straightens up
A few months ago, I wrote that SunPower would be a perfect fit for 3M (NYSE: MMM) -- and a steal in the process. I had everything right except the acquiring company, as it was eventually Total (NYSE: TOT) that made a tender offer for 60% of the company's shares, but this time I have a foolproof target for 3M: Align Technology (Nasdaq: ALGN).
3M is already a giant in dental and orthodontic supplies, and Align Technology's Invisalign would fit perfectly in the business. "Tuck-in" acquisitions have been 3M's growth path during CEO George Buckley's tenure, and this would be a perfect fit. Align just reported earnings that blew away Wall Street, and that growth is something 3M needs.
Align Technology would probably cost around $2.5 billion based on its current $1.8 billion market cap. But with an estimated 23% future growth rate and extremely high margins, it's a perfect fit for 3M.
Sony goes organic
Let's be honest: Sony (NYSE: SNE) has lost its edge. The company that once wowed us with the Walkman is now a shell of its former self and can't seem to right the ship. The Vaio is uninspired, cameras and camcorders are being replaced by cell phones, and Sony's lineup of TVs is overpriced.
Sony could change all of that by making a big move into OLED technology by buying Universal Display (Nasdaq: PANL). The OLED technology company would cost about $3 billion, but Sony has more than enough cash on hand on its balance sheet to make it happen. There are deals with Sony's competitors that would have to be worked out, but I think it's worth the risk.
Making the jump from has-been to leader in display technology may just be enough to make Sony relevant again in electronics. Sony could expand its presence in televisions, add some pizazz to its computers, and even spruce up its Reader Digital Books in one move.
CEOs, are you listening?
These deals may not actually happen, but I think they make a lot of sense for CEOs to consider. What do you think about the deals I've proposed? Do you have a better idea? Leave me your picks in our comments section below.
