Barron's Discusses LBO Targets

A weekend Barron's article discusses the LBO boom and mentions some potential targets. Link $

According to the article, Morgan Stanley strategist Henry McVey says a $50 billion LBO is possible, suggesting all but the top 60 companies could be targets. Some large companies that could be targets include Gap (NYSE: GPS), Micron Technology (NYSE: MU), Bed Bath and Beyond (Nasdaq: BBBY), Nike (NYSE: NKE), Liz Claiborne (NYSE: LIZ), EMC (NYSE: EMC) and Costco Wholesale (Nasdaq: COST).

The report also says energy takeovers have mainly involved strategic buyers, but that could change. The report mentions Apache (NYSE: APA), Valero Energy (NYSE: VLO), Hess (NYSE: HES) and Transocean (NYSE: RIG) as possible targets.

In the consumer sector Avon Products (NYSE: AVP) has been the subject of takeover rumors. Merrill Lynch places Kimberly-Clark (NYSE: KMB) and Estйe Lauder (NYSE: EL) on the top of their list of targets.

Homebuilders have been mentioned as LBO targets including KB Home (NYSE: KBH), DR Horton (NYSE: DHI), Lennar (NYSE: LEN), Toll Brothers (NYSE: TOL), MDC (NYSE: MDC) and Hovnanian Enterprises (NYSE: HOV).

In technology, CreditSights says Linear Technology (Nasdaq: LLTC), Maxim Integrated (Nasdaq: MXIM), Analog Devices (NYSE: ADI), (Nasdaq: ALTR) and Xilinx (Nasdaq: XLNX) makes their list of buyout targets.

WSJ Discusses Next Takeover Targets

The Wall Street Journal's 'Heard on the Street' column discuss who's the next takeover target, following the wave of deals. The article mentions Sprint Nextel (NYSE: S), Hilton Hotels (NYSE: HLT), Lennar (NYSE: LEN), Ryland Group (NYSE: RYL), D.R. Horton (NYSE: DHI), Avis Budget Group (NYSE: CAR) and Nabors Industries (NYSE: NBR) as possible targets. The report also reiterated that private-equity firms are looking at ServiceMaster (NYSE: SVM). Link $