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Cramer on BloggingStocks: Why foreigners find U.S. buys so unattractive

Jim Cramer on BloggingStocks TheStreet.com's Jim Cramer says the poor outlook for this economy has stemmed the flood of takeovers from abroad we'd normally see in this kind of market.

Where are the Europeans? Where are the Asians? Where are the Middle Easterners? Are they all cowed into not buying our companies despite the decline in the dollar?

Consider that there have been only two deals above $10 billion this year: AstraZeneca (NYSE: AZN) (Cramer's Take), which bought Medimmune for $15 billion, and Saudi Basic Industries, which purchased GE Plastics for $12 billion. No one has taken advantage of the astounding decline in the U.S. dollar to buy up enterprises.

Take two that seem absurdly low: Whirlpool (NYSE: WHR) (Cramer's Take) and Black & Decker (NYSE: BDK) (Cramer's Take). Both companies have bought in an immense amount of stock. Both companies now trade at $5 billion in value. Give them a 25% haircut and you can see how much these name-brand companies are marked down.

But nobody cares.



The amazing thing about this decline in our currency is that it has not started a wave of acquisitions. It is one of the most astounding features because other than real estate you have seen no company take advantage of it. Surely an Electrolux would be pouncing on one of these, or any German industrial company.

I just pick those two because they are so ridiculously small in size now in euros. There are dozens of companies that fit that depiction.

Why hasn't it happened? I could have picked Wachovia (NYSE: WB) (Cramer's Take), which would make so much sense for an HSBC (NYSE: HBC) (Cramer's Take) to buy. (I had thought the Canadians would be down here buying but so far only Commerce (NYSE: CBH) (Cramer's Take) has attracted a bid.)

I have no idea.

Meanwhile, Celgene (NASDAQ: CELG) (Cramer's Take) buys a European company! (Celgene, by the way would have been up Tuesday -- look at Adam Feuerstein's great stuff on this -- if it weren't for the crummy tape.)

We could look to anywhere overseas to save us but the lack of interest is, alas, deafening.

Maybe it says more about what they think about us than anything else. Nobody seems to want to sell into our market. I have to say it won't always be that way but the lack of takers may be speaking to the horrendous domestic economy, one that has rates through the floor because of a dramatic lack of consumer demand.

Jim Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. At the time of publication, Cramer had no positions in stocks mentioned.

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Last updated: December 02, 2008: 06:58 PM

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