Eastman Kodak (NYSE: EK) is recently up $1.30 to $28.34 after the Financial Times reported Hewlett Packard (NYSE: HPQ) may take another look at EK as an acquisition target. EK has been frequently mentioned as a takeover target over the last four years. EK is expected to report EPS on 11/1. EK call option volume of 22,749 contracts compares to put volume of 11,136 contracts. EK October 30 straddle is at $2.15. EK November call option implied volatility is at 43, puts are at 49, above its 26-week average of 35 according to Track Data, suggesting larger risk.
Dow Chemical (NYSE: DOW), a diversified chemical company, is recently up $0.67 to $45.46 on unconfirmed reports DOW canceled an analyst meeting, renewing buyout chatter. DOW is expected to report EPS on 10/25. DOW call option volume of 16,275 contracts compares to put volume of 3,026 contracts. DOW November option implied volatility of 28 is above its 26-week average of 25 according to Track Data, suggesting larger price risk.
Daily M&A Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.
Reader Comments (Page 1 of 1)
10-15-2007 @ 2:56PM
JWigg said...
While I think this would be a good merger, this deal seems to get mentioned every year and I wonder if it will ever happen. Of course the same thing could be said for the Oracle-BEA deal and look what happened last week. HP and Kodak would be a good fit and beneficial to each other. Not to mention that Kodak could probably use a boost in its fight against Fuji. The fact that the current Kodak CEO is a former longtime HP executive http://www.newsvisual.com/newsvisual/2007/10/hp-eastman-koda.html doesn't hurt either. If merger talks start there are plenty of channels to carry out negotiations.