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More merger and acquisitions are likely in the second quarter and throughout the rest of 2012, one strategist said Monday.
“We’re going to see more transactions. My theme all along for the past two years has been: Because of the economic standpoint that we are in a global cycle, we’re going to see more consolidation,” Sachin Shah, special situations and merger arbitrage strategist at Tullett Prebon said on “ Fast Money .”
“There is a lack of growth, essentially, with some of the companies, and they’re basically looking for acquisitions,” he added.
One company Shah said he liked was Jaguar Mining.
A would-be buyer, Shandong, has reportedly made a $9-per-share bid for the company that operates primarily in Brazil.
Shah said Jaguar, which closed at $5.18 per share, held a potential 50-cent downside and more than $4 in possible upside.
Although other deals have been troubled by a lack of transparency, Shah said this was one easier to verify because of its location.
“The assets are in Brazil,” he said. “They’re not in some remote place.”
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