Before CNBC’s MAD MONEY ended, Cramer evaluated Timberland (TBL) as a potential takeover target for VF Corp (VFC). He noted that TBL is not so big and that VFC could easily handle the acquisition on a financial basis. He also thought VFC would run TBL’s operation and properties more efficiently than TBL has been able to on a standalone basis. Cramer then delved into Timberland on a fundamental basis and determined that its fundamentals are pretty good on its own. He thinks if you are looking for a takeover candidate in the retail/apparel sectore that TBL could be the one.
It should be noted that the WSJ back in mid-November already said the company was exploring a sale and that Goldman Sachs was the hired shoe salesman. The company also made a "mystery stock move up" about a week before as many stocks began looking like takeout candidates. Cramer did note some of the "already started" issues, but this was more pondering that VFC maybe "should" do a deal rather than a "VFC is just about to" do a deal.
Jon C. Ogg
December 5, 2006