Jim Cramer Ponders Which US Companies China Will Acquire

September 4, 2007 by Douglas A. McIntyre

On today’s STOP TRADING segment on CNBC, Jim Cramer was discussing China’s desire to grow and acquire.  He noted that with so many companies being some of the largest in the world that some large acquisitions "could" be desired.  We want to emphasize that "can" is different than "will" before trusting this without any thought.

Pertochina (NYSE:PTR) is one of the largest companies with a $260+ Billion market cap and it might want a Gulf of Mexico oil play or another oil play.  Cramer noted that it could go after Halliburton (NYSE:HAL), Anadarko (NYSE:APC), or Apache (NYSE:APA).  Cramer also noted that China Mobile (NYSE:CHL) might want to own a Motorola (NYSE:MOT).

Cramer noted a couple of plays that will benefit from growth in China: Focus Media (NASDAQ:FMCN) is a way to play advertising for China’s Olympics, but Wynn (NASDAQ:WYNN) may be the best way to play the emerging China wealth emerging that will gamble in Macau.

Keep in mind, that China’s CNOOC (NYSE:COO) was blocked from acquiring Unocal by regulators in recent years.  So a deal of the sizes proposed here may be more for conversation’s sake rather than for speculating on a buyout.

Jon C. Ogg
September 4, 2007

Jon Ogg can be reached at jonogg@247wallst.com; he produces the Special Situation Investing Newsletter and he does not own securities in the companies he covers.