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   Strategies & Market TrendsSpeculating in Takeover Targets


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To: Paul Senior who wrote (1643)4/10/2007 1:40:32 PM
From: richardred
   of 6275
 
Paul, it's a great question and IMO a tough one to answer rationally. A question you don't hear talked enough among longer term investors. I'll tell you my thoughts as it relates to my personal thinking. I don't always follow the norm. The normal rational is usually different among fundamentalists (their own style). I usually hear this common phrase. It's dead money. Find a better place to put it with better prospects.

I sure do make mistakes and sometimes big ones.
This statement below is key for me.

>IMO- . Simply put, when I have a good year. I take bigger risks.
Message 23043257

Back to your question >just how long is one patient with stocks that go no where?

I mentioned earlier about the saying, dead money. IMO it's not exactly dead money if a stock is bringing in income (dividend income).

In regards to SPPI
SPPI Future potential plays a key. This in regards to stocks that don't pay a dividend. Also, your own confidence in the company. That could be determined by what the insiders are doing? In SPPI case, they have been net buyers. Tax loss implications play a role for me also. Can I offset the loss currently or do I want to offset it later? Or do I want to carry forward a loss that wasn't offset. I also ask myself. Why did I buy the stock in the first place? Are conditions still there? Am I cutting portfolio risk or adding risk through diversification with this stock?

Risk involved plays a big role for me. I'm assuming as a longer term investor yourself. Like me, you will dollar cost average if you have decided to stay in. With a company like SPPI the risk is big, but so is the payoff IMO. I have accumulated shares over the years at a much lower cost basis. 4-low five range. I have personally decided to cut my risk now because I have all remaining shares in the money. We are also getting close to an event, FDA approval. What if it doesn't get approved?

To try and sum every thing up. I think you have to make decisions on stocks on case by case basis (your style). Determined by where your shares are, and current market conditions in relation to your portfolios condition.

If I haven't lost you yet. IMO There's always that human factor witch ties into your own style of investing, and back to the statement. >Your success or mistakes will determine how outside your own discipline you will venture. My own style of self discipline has probably kept me from progressing at a faster pace over the years. I have however progressed from the buy and hold strategies of old, to employ newer techniques of today’s market conditions. Even though I regard myself as a fundamentalist. I still believe the statement "TIMING IS EVERYTHING" is shared between Fundamentalists and market technicians. Part of the newer market conditions I've been open to, is, to try new things.

At this point in time. Don't know if what I said helps, but I'm fairly sure we both want to make money, and want to have some control over it?

RR

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To: richardred who wrote (1646)4/10/2007 4:16:56 PM
From: Paul Senior
   of 6275
 
Thanks for the nice response! Some good ideas in there for me to consider.

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To: Paul Senior who wrote (1647)4/11/2007 12:07:05 AM
From: richardred
   of 6275
 
Glad to give some insight that might be of use.

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To: richardred who wrote (1306)4/11/2007 2:05:44 AM
From: richardred
   of 6275
 
CCA Buyout by Dubilier Falls Through
Tuesday April 10, 5:56 pm ET
CCA Industries Nixes $94 Million Buyout by Dubilier & Co. Over Failed Financing

EAST RUTHERFORD, N.J. (AP) -- CCA Industries Inc., which makes and markets health and beauty aids, said Tuesday it terminated negotiations for a $94 million buyout by Dubilier & Co.

CCA Industries said Dubilier could not secure financing for the deal, which called for the private investment firm to pay about $12.25 per share. The transaction was announced in November.

As result, CCA Industries said it would release its earnings for the first quarter ended Feb. 28 within the next week. The company warned that costs associated with the failed merger would result in lower earnings versus the year-ago period.

CCA shares fell 92 cents, or 7.7 percent, to $11.01 in after-hours trading, having closed earlier at $11.93 on the American Stock Exchange.

biz.yahoo.com

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To: richardred who wrote (963)4/11/2007 2:09:52 AM
From: richardred
   of 6275
 
Cardinal Health Closes $3.3B Unit Sale
Tuesday April 10, 3:38 pm ET
Cardinal Health Closes Sale of Pharmaceuticals Tech Service Segment to Blackstone for $3.3B

DUBLIN, Ohio (AP) -- Cardinal Health said Tuesday that it closed the sale of its pharmaceutical technologies and services segment to private equity firm Blackstone Group for $3.3 billion cash.

In November, Cardinal Health announced it would sell the segment, with Blackstone announcing its bid in January. In early March, the Federal Trade Commission signed off of the acquisition.

The segment employs about 10,000 people and generates about $1.8 billion in revenue per year.

Cardinal Health said it will focus its resources on its four remaining health care segments, and use $3.1 billion in after-tax proceeds to buy back shares.

Shares of Cardinal Health fell 29 cents to $72.99 in afternoon trading on the New York Stock Exchange.
biz.yahoo.com

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To: richardred who wrote (1641)4/11/2007 2:12:12 AM
From: richardred
   of 6275
 
BCE Holder Denies KKR Acquisition Plans
Tuesday April 10, 2:38 pm ET
BCE's Largest Shareholder Refutes Reports of Acquisition Plans With Private Equity Firm KKR

NEW YORK (AP) -- BCE Inc.'s largest shareholder denied media reports that it is pursuing an acquisition of the Canadian telecommunications company with private equity firm Kohlberg Kravis Roberts & Co., according to a regulatory filing with the Securities and Exchange Commission.

The shareholder, Ontario Teachers' Pension Plan Board, on Monday reported owning 42.8 million shares, or a 5.3 percent stake, of the Montreal-based company, which provides long-distance and local access services as Bell Canada.

In the filing, Teachers' said it isn't pursuing a transaction with KKR and has "no current intention or plans to pursue such transaction" with KKR. However, as BCE's largest shareholder, Teachers' said it is "closely monitoring developments and exploring its options."

U.S.-listed shares of BCE jumped $1.53, or 5.4 percent, to $29.75 in afternoon trading on the New York Stock Exchange, having earlier hit a new 52-week high of $30.57. The stock, which previously traded between $22.23 and $30.02 over the past year, climbed in late March following media reports of its possible acquisition by KKR.

Toronto's Globe and Mail reported March 29 that BCE executives met to discuss a buyout with Kohlberg Kravis Roberts, which the newspaper estimated could be worth just under 30 billion Canadian dollars ($25.91 billion) and be the biggest in Canadian corporate history.

BCE has denied the report.

Bell Canada owns stakes in local phone companies across Canada, as well as wireless carrier Bell Mobility. Other BCE services include Internet access, data and e-commerce services, and satellite communications. BCE owns a minority stake in CTVglobemedia, Internet portal Sympatico and The Globe and Mail newspaper.
biz.yahoo.com

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To: richardred who wrote (1191)4/11/2007 2:15:35 AM
From: richardred
   of 6275
 
PPR Making $7.1B Offer for Puma
Tuesday April 10, 12:50 pm ET
By Geir Moulson, Associated Press Writer
Luxury Goods Maker PPR Buys 27 Pct Stake in Puma, Offers to Buy Rest of Company in $7.1B Deal

BERLIN (AP) -- PPR SA, the French luxury goods maker behind the Gucci and Yves Saint Laurent brands, said Tuesday it is buying a 27.1 percent stake in Puma AG and plans to make an offer for the rest in a deal that values the world's third-largest sporting goods maker at $7.1 billion.

Herzogenaurach-based Puma welcomed the offer and said management would recommend it to shareholders.

PPR said it was paying 1.4 billion euros ($1.9 billion) for the stake in Puma held by the Mayfair investment company.

Following that deal, PPR said it plans to launch a "friendly takeover offer" for Puma's remaining shares at the same price of 330 euros ($441.11) per share. It said it expects to complete the offer in early July.

Puma's board "unanimously believes that PPR's engagement is in the best interests of the company and that the announced offer price per share ... for the voluntary public takeover offer is fair," Puma said in a statement.

Puma shares soared 9.4 percent to close at 343.93 euros ($461.76) -- above PPR's offered price -- in Frankfurt. The shares had risen more than 10 percent on Thursday, the last trading day before the Easter weekend, on talk of a possible bid. PPR shares rose 3.2 percent to close at 133.03 euros ($178.61) in Paris.

"We guarantee Puma's continuity as an autonomous company within the PPR Group," PPR Chief Executive Francois-Henri Pinault was quoted as saying in Puma's statement.

Puma added that "there will be no changes with regard to staffing."

Established in 1948, Puma is one of the world's biggest sporting goods companies after U.S.-based Nike Inc. and Adidas AG, which also is based in Herzogenaurach. It has some 7,800 employees.

Puma has been working to expand its reputation as a maker of lifestyle brands -- clothes, shoes and accessories such as eyeglasses -- and expand in more regions and categories.

Last year, it launched a joint footwear collection with Alexander McQueen, also part of the PPR group.

In 2006, it earned a net profit of 263.2 million euros on sales of 2.37 billion euros.

Executives of PPR, which also owns luxury brands Balenciaga and Stella McCartney as well as the Fnac music chain and Conforama furniture chain, described the offer price as "firm and final" during a conference call.

Chief Financial Officer Jean-Francois Palus said that "we will not endanger our credit rating with acquisitions."

Still, Puma shares' rise above the offered price appeared to raise the possibility that PPR might have to raise its bid -- or that another bidder might enter the fray.

Standard & Poor's placed its corporate credit ratings on PPR under review.

That "reflects uncertainties regarding the bid's cash impact, which in turn depends on whether all of Puma's existing shareholders pledge their shares, and the final price paid by PPR, which could exceed 5 billion euros," S&P credit analyst Nicolas Baudouin said in a statement.

Puma Chief Executive Jochen Zeitz stressed that his company considers PPR "the right partner" when asked during a conference call about the possibility of a rival bid -- which he described as "very hypothetical."

He said that "should there be another offer, we'd closely examine it."

S&P pointed to the benefits for PPR of buying Puma.

"Acquiring Puma would provide PPR with an international brand carrying strong worldwide recognition, as well as diversification into the sportswear industry, which enjoys strong growth prospects," the agency said.

A stake of more than 25 percent in a German company gives the holder a blocking minority, ensuring significant influence over decisions.

Mayfair manager Rainer Kutzner said that "it was not an easy decision" to sell the stake, but that PPR was an "ideal partner" for Puma and the deal was a rare opportunity.

Hamburg-based Mayfair is an asset management company for members of the Herz family, which founded Germany's Tchibo coffee and clothing retailer. Siblings Guenter and Daniele Herz took their stake in Puma, via Mayfair, in May 2005.
biz.yahoo.com

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To: Paul Senior who wrote (1644)4/11/2007 10:08:59 AM
From: richardred
   of 6275
 
Someone came in with that one on this board. We had some discussion about it awhile back.
Message 21263945

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From: richardred4/11/2007 11:55:44 PM
   of 6275
 
Nestle said to buy Gerber business for $5 billion
Wednesday April 11, 5:40 pm ET

LONDON (Reuters) - Nestle SA (VTX:NESN.VX - News) is expected to announce a $5 billion deal to acquire baby-food maker Gerber, a household name in the United States, from Novartis AG (VTX:NOVN.VX - News), sources familiar with the situation said on Wednesday.

An announcement is expected on Thursday, according to the sources, who requested anonymity.

Swiss-based Novartis, the world's fourth-biggest pharmaceuticals company, declined to comment. Nestle could not be reached immediately for comment.

Although Nestle is the world's biggest maker of infant nutritional products, it lacks a baby food brand in the U.S. and has been keen to buy Gerber for more than a decade.

In January, Nestle Chief Financial Officer Paul Polman reiterated that the company would be interested in Gerber if it was put up for sale.

Swiss-based Nestle, which makes Nescafe coffee, KitKat chocolate wafer bars and Perrier bottled water, first tried to buy Gerber in the early 1990s, but lost out to Sandoz, which later became part of Novartis.

An acquisition of Gerber would continue Nestle's push into health and nutrition. Nestle recently bought the medical nutrition business of Novartis for $2.5 billion, but that deal did not include Gerber.

A Nestle purchase of Gerber has been widely expected by analysts, who predicted the unit would fetch in the range of $5 billion to $6 billion.

In January, Novartis said it was under no pressure to sell Gerber. The sale, however, will allow the company to focus on its core drugs business, sources said.

Novartis makes drugs such as Diovan for hypertension and Glivec for leukemia.
biz.yahoo.com

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From: richardred4/12/2007 12:00:10 AM
   of 6275
 
Teleflex Acquires Specialized Medical Device Business
Wednesday April 11, 5:22 pm ET
Expands OEM business with additional product offerings for orthopedic and spine markets

LIMERICK, Pa.--(BUSINESS WIRE)--Teleflex Incorporated (NYSE:TFX - News) announced today that it has acquired the assets of HDJ Company, Inc. (HDJ) and its wholly owned subsidiary, Specialized Medical Devices, Inc. (SMD), a provider of engineering and manufacturing services to medical device manufacturers. The transaction adds another well respected line of medical components, devices, implants and instruments used primarily in orthopedic procedures to the Teleflex Medical portfolio. In 2006, HDJ's annual revenues for these product lines were approximately $14 million. The terms of the agreement were not disclosed.

"We are excited about the potential created by combining the expertise and capabilities of SMD with the Teleflex Medical OEM business," commented Ernest Waaser, president, Teleflex Medical. "Combining the SMD brand with our Beere and KMedic lines strengthens and extends our product offerings for the orthopedic and spine markets and creates the opportunity to provide medical device manufacturers worldwide with a more complete range of products and services."

Mary Burton, president of HDJ/SMD added, "In joining Teleflex, SMD becomes part of an organization that shares with us a history of manufacturing excellence and a commitment to customer service. Together, we can expand the market for our products and services and better serve our existing customers."

About HDJ/SMD

Founded over 40 years ago, HDJ/SMD has become a well respected provider of engineering and manufacturing services for the industry's leading medical device manufacturers. Known as Specialized Medical Devices, Inc. (SMD), the company employs approximately 140 people in its Lancaster, PA, location. SMD provides a full range of prototyping, engineering and testing services along with full scale production machining, assembly and contract packaging.

About Teleflex Medical

Teleflex Medical, a division of Teleflex Incorporated with 2006 revenues of over $850 million, is a leading global supplier of disposable medical products, surgical instruments and medical devices. The division supports health providers along the continuum of care in three main areas:

* Devices for sleep therapy, respiratory care, anesthesia and urology
* Instruments, medical devices and specialty suture used in surgery
* Design and manufacture of specialty products for medical device manufacturers

Teleflex Medical markets healthcare supplies under the HudsonRCI® and Rusch® brand names and surgical instruments and medical devices under the Beere®, Deknatel®, KMedic®, Pilling®, Taut® and Weck® brands.

About Teleflex Incorporated

Teleflex Incorporated (NYSE:TFX - News) is a diversified company with revenues of $2.6 billion in 2006. Teleflex designs, manufactures and distributes quality-engineered products and services for the automotive, medical, aerospace, marine, and industrial markets worldwide. Headquartered in Limerick, PA, with operations in 23 countries, Teleflex employs more than 19,000 people worldwide who focus on providing innovative solutions for customers. Additional information about Teleflex can be obtained from the Company's website on the Internet at www.teleflex.com.

Forward-looking information:

Statements in this news release, other than historical data, are considered forward-looking statements under the Private Securities Litigation Reform Act of 1995. These statements are subject to various risks and uncertainties that could cause actual results to differ from those contemplated in the statements. These factors are discussed in the company's Securities and Exchange Commission filings.

Contact:

Teleflex lncorporated
Julie McDowell
Vice President
Corporate Communications
610-948-2836

Source: Teleflex lncorporated
biz.yahoo.com

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