Washington Mutual to buy Providian for $6.45 billion - Financial - Financial Services - Company Announcements - M&A

TAKE OVER, TAKE-OVER, TAKEOVER

The number of big merger deals may be headed for a record. Investors often asked how to hit take overs. The best approach is to buy good stocks. You will hit take overs when you least expect them if you own good companies.

I wonder how many banks existed that are now part of Wachovia Bank. Wachovia recently apologized because at least one of the banks that merged to form First Union Bank and at least one of the banks that merged to form Wachovia Bank once secured loans with slaves. The company plans to do business in Chicago and an ordinance there requires companies to disclose their slave dealings. It took Wachovia several months to do the research as the company has merged with many smaller banks over the years.

The real point is that one should buy shares in good companies now before they are taken over by other good companies. For at least three years, my family has had at least one or two take overs brewing all the time. The FON-NXTL deal has not closed while AMTD and ET are bumping heads.


Owning both AMTD and ET, we expect to "win". The surviving company should be able to cut costs and increase net profits. Providian went through a tough time after the bubble but the last three years have been sweet. Wonder which company is next?

BUY THE BIG BULL BEFORE SOMEONE ELSE BUYS IT FIRST!