Cramer on Timberland as a Takeover Target

Douglas A. McIntyre

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