Citigroup Said Sprint Nextel (S) Remains a Potential Candidate for M&A

Citigroup upgraded Sprint Nextel (NYSE: S) from Hold to Buy today. Citigroup analyst, Michael Rollins, says, "We are upgrading Sprint to a Buy rating with an upwardly revised target price of $25 as we believe the company is better positioned to pursue a restructuring of its marketing and operations, generate net add momentum beginning in the 2H07, and remain a potential candidate for M&A."

Rumors Surface Vodafone (VOD) Could Buy Sprint Nextel (S)

Rumors making the rounds Vodafone Group plc (NYSE: VOD) could be interested in buying Sprint Nextel Corp. (NYSE: S).

UPDATE: Stifel Nicolaus Sees Possibility of Bidding War for Alltel (AT)

UPDATE: Stifel Nicolaus comments on the WSJ story suggesting private equity firms are beginning to circle Alltel (NYSE: AT). The firm notes that a buyout has been a key part of their thesis since the spin-off of the company's wireline assets earlier this year. The firm says the company is a very attractive acquisition target for either private equity, or a strategic player such as Verizon Wireless (NYSE: VZ) (NYSE: VOD) or Sprint Nextel (NYSE: S).

The firm said a possibility exists of a potential bidding war between interested parties and believes valuations could climb to as high as $85/share in a competitive bidding environment.

The firm maintains its Buy rating and $68 price target and said the stock remains its top US-based stock.

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 $