General Electric Company (NYSE:GE) shares rallied $0.99, or 2.76%, to $36.84 today after Citigroup (NYSE:C) analysts recommended that the company spinoff NBC Universal, GE Money and the real estate division. The analysts suggested that GE's size and complexity is working against investors in the stock and has contributed to further value erosion. The move by Citigroup analysts follows similar suggestions from other analysts during the past few weeks. An analyst from Prudential Equity Group Inc. even suggested that Google (NDAQ:GOOG) may be interested in acquiring its NBC Universal division to compliment its YouTube media offerings.

Just how much could this move yield for investors? Well, some analysts like Jeffrey Sprague from Citigroup are pegging the breakup value at around $46 per share. Moreover, streamlining the company's operations would help give investors a greater understanding of the company and perhaps enable it to command a premium instead of trade at a discount. Clearly, these moves also have widespread support from the company's shareholder base who expressed concerns about the company's valuation at the last annual meeting. Whether or not the company heeds this advice remains to be seen, however, this is definitely a stock to watch in the meantime!

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ABN Amro Holding (NYSE:ABN) shares moved up $0.55, or 1.11%, to $50.08 today after a consortium led by the Royal Bank of Scotland said it would go ahead with plans to launch a hostile bid for the company in a move aimed at breaking up the friendly existing bid by Barclay's Bank. "The banks continue to believe that their proposals offer materially higher value for ABN Amro's shareholders and benefits to customers and employees compared with the recommended offer from Barclays," the banks said in a joint statement. Obviously, shareholders are also interested in seeing this new offer. The Children's Investment Fund - the activist hedge fund that owns 2% of ABN Amro and originally called for the breakup - welcomed the consortium's plan and described it as "compelling." Whether or not the board of directors agrees to review this new bid remains to be seen; however, this is definitely a stock to keep an eye on in case a bidding war breaks out.

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Applebees International Inc. (NDAQ:APPB) shares rose $1, or 3.89%, to $26.84 today after the company announced that it has received preliminary takeover offers and would begin a second round of due diligence with bidders before taking final offers. The company also said that it was exploring a recapitalization of the company as a possible alternative to a buyout. The moves come after Applebees settled with dissident shareholders Richard Breeden and his Breeden Capital Management LLC who threatened a proxy fight over board seats. As part of their settlement, the company agreed to explore strategic alternatives back in February. We covered this story in several past articles that outline the hedge funds problems and recommendations for changes at the company.

Now that the company has potential bidders on its doorstep, we can assume that it comes in at a premium higher than the current share price. After all, Applebees is a national chain that both financial and strategic buyers may be interested in turning around. The company was quick to note, however, that it was too early to comment on the likelihood or value of a recapitalization or sale, saying that there was no guarantee that a transaction would occur. Regardless, this is definitely a stock to watch as the company explores its options!

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Universal Power Group Inc. (NYSE:UPG) shares remained about even today after 3V Capital Management disclosed a 12.6% stake in the company and expressed their concern about UPG's stock price, which has fallen 33.6% since the IPO last December. The hedge fund said that it believes the stock is grossly undervalued at this price and that the company's board should work to create shareholder value in the most effective and expeditious way and do what is possible to ensure the market is reflective the fair value of the business as consistently and often as feasible. Consequently, 3V requested that it be able to express its ideas and views on ways to enhance shareholder value with representation on the company's board.

What exactly does the hedge fund want to accomplish? Well, according to their letter 3V has an excellent relationship with senior management and they intend to work closely with them and the board to help refine and better communicate their business strategy and operating plans to the investment community. Given the hedge fund's ties to institutional investors and the analyst community, it could help make the company much more known in the market. 3V also clued us into some other possibilities in Item 4 of their Schedule 13D filing where they noted that they may recommend transactions specified in clauses (a) through (j) of Item 4, which could mean a sale of the company, acquisition of other companies, changing of strategies, adopting or destroying anti-takeover measures, and restructuring the company's capitalization or dividend policy. In the end, there are clearly a lot of things that 3V could do, and with such a large stake in the company they should not have any trouble getting things done! This makes UPG a stock worth watching over the next few months!

Cerus Corporation (NDAQ:CERS) shares moved up $0.27, or 3.52%, to $7.94 after the company announced that it was evaluating strategic alternatives for its immunotherapy vaccine businesses. Cerus has three immunotheraputic product candidates with one in early stage human clinical trials and another for which an investigational new drug application is slated to be filed in mid-2007. The products are designed to stimulate immune pathways to target and attack cancer cells and infectious diseases. These strategic options could include a sale, merger, spinoff, or partnership with another company. Some investors had voiced concerns over the units valuation in the past and this move will enable the company to unlock the value for shareholders. This makes CERS a stock worth watching!

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MAIR Holdings, Inc. (NDAQ:MAIR) shares rose $0.32, or 4.43%, to $7.07 today after Shultze Asset Management disclosed a 5.9% stake in the company and expressed their disappointment over the company's plan to pursue acquisitions that may be outside of the airline industry using shareholder cash. The hedge fund believes that the company's best course of action would be to distribute any and all cash remaining after the reorganization to shareholders as soon as possible in a tax-efficient manner.

Shultze also suggested that the company initiate efforts to sell its Big Sky subsidiary by immediately retaining a nationally recognized investment banking firm. In the end, the hedge fund believes that the company's shares are undervalued based on the amount of cash that would be distributed to shareholders if the board implements its suggestions. Finally, Shultze said that it would not be adverse to seeking representation on the board if necessary in order to pursue its objectives. Combined, these factors make MAIR a stock worth watching!

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Alcoa Inc. (NYSE:AA) shares jumped $2.19, or 6.45%, to $36.14 after the company announced that it would explore strategic alternatives for its packaging and consumer business. The company said it would consider all options available including joint ventures, a spin-off, or sale of the business. In 2006, these businesses generated revenues of about $3.2 billion - or 10% of Alcoa's income. CEO Alain Belda said, "Our packaging and consumer business is improving and strengthening. However, now is the right time for us to explore whether these businesses may provide more value on their own or as a part of another company."

Separately, Alcoa also announced that it would explore strategic alternatives for its electrical and electronic solutions unit and its automotive castings business. These businesses had revenues totaling $1.6 billion in 2006, although they were only marginally profitable. The company said the process of reviewing these alternatives would be completed by the end of 2007. Many analysts see the move as beneficial for shareholders as it would unlock the value in these segments while allowing the company to focus more on their core competencies. There have also been rumors that Alcoa may be a buyout target, and selling off these divisions would make the company substantially cheaper. Whether or not anything amounts from this analysis remains to be seen; however, this is definitely a stock to watch!

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Emmis Communications Corporation (NDAQ:EMMS) shares moved up marginally after Martin Capital Management disclosed an 8.4% stake in the company and recommended that the company sell WQCD and possible KMVN, WKQX, and WLUP. CL King & Associates analyst James Boyle said that the station could be worth as much as $150 to $200 million. Moreover, the other stations listed by Martin Capital in Chicago and L.A. would also go for similarly high amounts. Combined, these transactions could help unlock significant value for shareholders.

According to Martin Capital, "the company would certainly have an opportunity to monetize valuable assets that are not contributing to cash flow in appropriate proportions to their private sale value". The hedge fund also speculated that these sales were the motive behind last years management buyout offer that was rejected by the board of directors as inadequate. While Emmis Communications refused to comment on any buyout rumors, this is definitely a stock to watch!

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Bausch & Lomb Inc. (NYSE:BOL) shares dropped $2.49, or 4.02%, to $59.44 retaining most of their gain from yesterday's speculation that the company could be a buyout target. The stock, options, and credit securities of the company continue to be very active today as investors continue to bet on the possibility of an LBO. But is there any merit to these rumors? Well, the company is down significantly from its 2006 highs around $80 per share after the company was forced to recall 1.5 million bottles of its ReNu MultiPlus contact lense solution and guided lower for the quarter. While the company continues to struggle with turning itself around after that setback, it has made the company's shares cheap given their market dominance and large portfolio. Perhaps this is why people are looking at the possibility of an LBO. Regardless, this is definitely a stock to keep an eye on!

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Genesco Inc. (NTSE:GCO) shares rose $0.88, or 1.76%, to $50.86 today after the company rejected Foot Locker's $1.2 billion - or $46 per share - offer for the company. We first noted the possibility of this bid back in March, when GCO shares were trading at $42 per share. Chairman and CEO Hal Pennington said, "Our board unanimously rejected the proposal and concluded that it did not reflect the long-term value of Genesco, including its strong market position and future growth prospects." Interestingly, the CEO also commented on Foot Locker CEO Matthew Serra's comments stating that his company would be willing to pay $48 to $50 per share and were willing to go higher. Finally, Jefferies & Co. confirmed in a note to clients that Foot Locker can be a higher price and still see benefits from the deal. After all, the purchase would lower the company's reliance on Nike Inc., which currently supplies half of the shoes it sells.

So, is a deal still on the table? Well, clearly there is interest by the purchasing party and Genesco at least took the time to officially review the bid before rejecting it. These actions suggest that Foot Locker may come out with a higher bid for the company, perhaps above $50 per share ceiling that was mentioned. Clearly this is what shareholders are banking on as the company's share price approaches $51 per share! Whether or not this goes through remains to be seen; however, GCO is definitely a stock to watch in the meantime.

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