Cramer Sees Buyout of Gap (GPS)

On Mad Money, Jim Cramer comments on Gap Inc. (NYSE: GPS). Cramer said despite the bad news the stock doesn't want to go lower. He also said despite views to the contrary, the company can turn around operations.

Cramer thinks the stock can go much, much higher. Cramer said multiple private equity firms want to buy the company. He specifically mentions private equity firm Thomas H Lee as a possibility. Cramer predicts that Thomas H Lee could take the company private at $25 in the next 6 months.

Gap Could Sell Itself in Pieces - Analyst

Prudential upgrades Gap Inc. (NYSE: GPS) from Underweight to Neutral, says board is meeting today and company has engaged service of Goldman Sachs. Says company may be looking to sell the company in pieces to more than one buyer.

CNBC Reports Gap (GPS) Hired Goldman Sachs To Review Strategic Options, Including Possible Sale

According to reports from CNBC's David Faber, Gap (NYSE: GPS) hired Goldman Sachs to review strategic options, which could include a possible sale.

Faber said the Fisher family, which controls a large percentage of the stock, could consider a going private transaction or could team with private equity firms to put together a leveraged buyout.

Faber said many firms have run the numbers on a Gap LBO recently and there has been no shortage of speculation on the name. Faber said the hiring of Goldman doesn't mean a sale is imminent as strategic options could simply involved a review of the brands.

Link To CNBC Video

Cramer Doubts Lampert Would Buy Gap (GPS)

Commenting on renewed speculation that hedge fund guru and Chairman of Sears Holdings (Nasdaq: SHLD) Eddie Lampert may try to buy Gap Inc. (NYSE: GPS), Jim Cramer, at RealMoney.com said, "Eddie has poached the best people from Gap over the years. I doubt he would want to buy the company when he can buy the people." Cramer suggests the rumors are being floated by bears in Sears Holdings.

Shares of Gap are up 2.7% today after the rumors were discussed at industry publication, Women's Wear Daily (WWD.com).

Gap (GPS) Higher on More Lampert Speculation

Specialty retailer Gap Inc. (NYSE: GPS) is higher this morning on reports from Women's Wear Daily (WWD.com) the speculation that hedge fund billionaire Edward Lampert is looking to takeover the company won't die down.

Shares of Gap are 1.7% higher to $19.90 in early action.

CNBC Commentator Discusses Recent Buyout Rumors

CNBC commentator Joe Kernen commented on rumored takeover targets ahead of what could be another "Merger Monday". Kernen said the following names have been mentioned as takeover targets recently. Micron Technology (NYSE: MU), RadioShack (NYSE: RSH), Deere & Co. (NYSE: DE), Ingersoll-Rand Co. Ltd. (NYSE: IR), OSI Pharmaceuticals Inc. (Nasdaq: OSIP) and Gap Inc. (NYSE: GPS).

Gap (GPS) Higher on More LBO Chatter

LBO chatter is swirling around Gap Inc. (NYSE: GPS) again today, driving the stock 3.9% higher. We are also hearing chatter than an activist hedge fund may be accumulating a position.
NOTE: GPS has been mentioned as a takeover target for some time, but some analysts have said a deal is unlikely.

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.

DealScape Comments on Lampert Speculation

DealScape blog comments on the rampant speculation related to hedge fund guru and Chairman of Sears Holdings (Nasdaq: SHLD) Eddie Lampert's next move. The blog notes recent speculation that Lampert could buy Safeway Inc. (NYSE: SWY), Gap (NYSE: GPS), Home Depot (NYSE: HD) or Anheuser-Busch (NYSE: BUD).

The blog said a deal with BUD or SWY are the most absurd. The blog said GPS or HD are far better options.

Commenting on their own list of possible alternative targets for Lampert, the blog said Foot Locker (NYSE: FL) and Pier 1 (NYSE: PIR) would be the ones to watch.