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Options News Mosaic calls heat up with takeover rumors

Mosaic calls heat up with takeover rumors


Shares of Mosaic MOS bucked the trend of the overall market by closing higher 3% at $43.05 on a takeover rumor. Privately held Cargill, which is already a 64% owner, in October let a 4 year long standstill expire that would have allowed them to take over Mosaic . The deal probably expired due to the credit crisis and the uncertain markets however, those rumors re entered today's news wire and we saw call option buying explode. According to our Option Sonar, we saw more than 45,000 calls change hands today, which is 40 times normal call volume. With the credit market easing and with the stock being beaten like the rest of the market, Cargill would be given a nice gift of buying the rest of the public float from the public which at Mosaic's all time high would have been worth 25 billion, now is worth 5 billion.

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