Cramer tonight on MAD MONEY was giving out some merger ideas that he said would be VERY anti-competitive just like the XMSR/SIRI deal, but w would be great for shareholders of these companies because of pricing power.  The potential of a Democratic White House or Congress could end the anti-competitive mergers that could go off before they take control.

Here is the full part of the first list for his number six thru ten.

BP (BP) & Chevron (CVX)
I covered the potential rumors on this at least on BP before.

Arch Coal (ACI) & Exxon (XOM) or Shell (RDS)

Boeing (BA) & United Tech (UTX)

Lockheed (LMT) & Northrop Grumman (NOC) or Raytheon (RTN)

Comcast (CMCSA) & Time Warner Cable (TWCA) (TWC)

Cramer said he doesn’t believe Sprint (S) will be public alone next ;
also Gannett (GCI) & McClatchy (MNI)

The #1 deal is potentially in the rail sector and Cramer thinks Burlington (BNI) and Union Pacific (UNP) or a Norfolk Southern (NSC) and a CSX (CSX) would be great.

This is the TOP 5 LIST from Cramer, but it is actually more than five.  Cramer says these aren’t a WISH LIST, because Cramer said he thinks they are coming.  Keep in mind that many of these are VERY anti-competitive and would be blocked if the DOJ actually monitored mergers, so this is sort of a ‘merger wish list’ of Cramer’s.  We maintain our own BAIT SHOP of takeover candidates that make sense, but this list above is purely anti-competitive and many could be blocked even by a dovish DOJ that hasn’t blocked a deal in 7 years.  Our picks are at least more geared toward a ‘MARKET NEUTRAL" mentality and these are not.

MY THOUGHT: Perhaps marks the peak of all merger speculations.

Jon C. Ogg
February 21, 2007

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