Under The Radar News - Thursday

Bear and Fortress held merger talks. Bear Stearns (BSC) held preliminary talks with alternative asset investment firm Fortress Investments (FIG) regarding a possible merger in the weeks before Jimmy Cayne stepped down as Bear CEO, a sign of the pressure BSC is under to seek a partner following heavy trading losses and declining fixed-income revenue.

For sale or not for sale? Bear Stearns' (BSC) new CEO Alan Schwartz said that while the company does not need to do a deal, "we have always said we will consider strategic alternatives." There are also reports Citic may increase its stake in Bear, or even look to acquire the company.

Buyer or seller? Bear Stearns (BSC) is in talks to buy about 10% of China Asset Management, China's biggest fund house, looking to tap the country's red-hot mutual fund market. The company is wholly-owned by Bear partner Citic, which has also spoken with T. Rowe Price (TROW).

China Unicom gains on split talk. Shares gained 7.2% in Hong Kong on speculation China Unicom (CHU) will sell its wireless networks to rivals.

Logitech surges on talk of Microsoft bid. Shares of Swiss Logitech (LOGI) rose more than 12% amid speculation Microsoft (MSFT) would make a bid for the company. A takeover would make MSFT the world's largest peripheral maker.

Microsoft still considering Yahoo bid. Bruce Jaffe, Microsoft (MSFT) VP of corporate development, is leaving to open his own company. "It doesn't surprise me that he is leaving, as his appetite for [M&A] is greater and faster than Ballmer's." Yet despite the departure and Ballmer's reticence, sources say Microsoft is still debating whether it should make last year's informal offer to buy Yahoo (YHOO) official.

Yahoo to buy Powerset? Yahoo! (YHOO) is rumored to be interested in the Powerset search engine.

Dreamliner already late. Internal schedules from Boeing (BA) show the 787 Dreamliner is already close to three weeks behind the its already revised schedule.

Pentagon budget favors Boeing's rivals Lockheed and Northrop. The Bush administration's last budget may help Lockheed (LMT) shares add 12% and Northrop (NOC) shares add 15% percent this year, at the expense of Boeing (BA).

India sees $150 oil, solicits Chevron, Exxon. India wants companies such as Chevron (CVX) and ExxonMobil (XOM) to explore its country for oil and gas, as it sees oil prices hitting $150 a barrel.

News Corp.'s Premiere stake only first step. News Corp.'s (NWS) €287 purchase of a 14.6% stake in Premiere Monday could be aimed at building a blocking stake in the German-listed pay-TV company, as a deterrent to would-be rivals, or even a precursor to a full bid.

CME halves trading times, reduces threat. CME Group (CME) will cut its trading times from 31 milliseconds to 16.5 milliseconds, which should reduce the threat to its business from a recently announced rival exchange owned by Citigroup (C), JP Morgan (JPM) and others.

Hedge fund builds stake in Goodyear. TPG-Axon Capital Management disclosed a 5.5% stake in Goodyear Tire & Rubber (GT), making it the company's #2 shareholder behind Eton Park Capital Management, which reported a 7.7% stake on Dec. "Both firms are very value focused," says Ben Silverman, of InsiderScore.com.

What should BofA do with Countrywide?. While shares of Countrywide Financial (CFC) continue to fall on bankruptcy concerns, Bank of America (BAC) is left with the decision to either acquire CFC or risk its $2B August investment.

Merck may not be out of woods on Vioxx. Merck (MRK) could face continued litigation from claimants threatening to opt out of an upcoming $4.85B settlement after the drug was pulled in 2004 due to cardiovascular risks.

Time Warner takes stake in teen network. Time Warner (TWX) has invested an undisclosed amount in Gaia Online, an online virtual community aimed at teenagers. Gaia's 3 million unique visitors per month spend more than two hours on the site per day on average.

Blu-ray coup could change game for Sony. Warner Brothers (TWX) Friday defection to Blu-ray could give some lift to the Sony's (SNE) PlayStation 3, which includes a Blu-ray player, and resets the game for the company.

SLM goes fishing for $30B. Sallie Mae (SLM) needs to raise $30B to refinance an existing credit line by Feb. 15. Refinancing may be expensive, due to credit-market nervousness about the lender's future profitability.

Semi merger? There are rumors Semiconductor Manufacturing International (SMI) may be acquired by Chartered Semiconductor (CHRT).

Retailers nervous over TV switch. Best Buy (BBY) CEO Brad Anderson says the Feb. 17, 2009 transition from analog to digital TV is "one of the biggest risks our industry has." He says the number of new converter boxes required to make the switch could put tremendous pressure on retailers.

Schwartz could look to do deals. Howard Schultz’s return as Starbucks (SBUX) CEO may mean more acquisitions. He would most likely look to add healthy alternatives that would allow the company to compete with and differentiate itself from McDonald’s. Possibilities include Jamba (JMBA) and Panera (PNRA).

Northern Rock - China to the rescue? Goldman Sachs (GS), hired to help arrange financing to rescue Northern Rock, is seeking investors in China and the Middle East, in addition to the £15B already committed by Deutsche Bank (DB), Royal Bank of Scotland and Citigroup (C).