While the stock market falls, acquisition speculation heats up. Stock values may have finally fallen far enough to become bargains for companies looking to expand through acquisition.
Today, it appears option investors are buying Hershey Co. (HSY) March 35 (HSYCG) and April 35 Calls (HSYDG) more than 20,000 times. With the stock at its 52-week low, it may be cheap enough for Nestle to acquire the company.
There has been speculation regarding this transaction in the past but we now have investors buying options with two weeks left before expiration.
Lexmark International Group Inc. (LXK) may also become an acquisition target in the near future. We are seeing unusual buying activity in the LXK March 17.50 (LXKCW) and April 17.50 Calls (LXKDW). Lexmark is down more than 42% year-to-date and is back to price levels last seen in 1997.
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