For months, we've expected someone to pick up Guitar Center (NASDAQ: GTRC), the largest U.S. musical instrument retailer. Now, Bain Capital Partners affiliates will pay $1.9 billion in cash, or $63 per share, equal to a premium of 26% over yesterday's closing price of $50.06. Additionally, the buyers will assume about $200M in debt. Goldman Sachs Group (NYSE: GS) helped to auction them off, and the deal is expected to close in the fourth quarter.

Guitar Center, which went public in 1997, now has over 210 stores. Last year they bought instrument retailer Woodwind & Brasswind for about $30 million. Back in March came word that Sageview Capital upped its holdings to 8.69%. Brokers responded with strong buys, buys and some holds, based on expectations of solid growth in the year ahead. Now it's time for private equity to tune it up. The stock had been a disappointment and the direct response business needs help.

Yes, it's June already, and as the heat begins to rise, so does rumor rage.

PACKETEER INC (NASDAQ: PKTR)

On the block? If some investors have their way it is. The developer of wide area network, or WAN, Application Optimization systems expects first quarter revenues to fall about 20% from the fourth quarter's $42.7M. Leading the insurgency is "activist investor" Elliott Associates which holds 6.3% of the shares. In a letter to the firm's board, Elliott wrote that the company has "proven unable" to take advantage of its "leading technology." Better to be in the arms of a bigger company? The vultures think so.

GUITAR CENTER INC (NASDAQ: GTRC)

Quicker than you can strum your guitar, this number appears to be up. Up for sale. The information is coming faster than a high strung solo. Goldman Sachs Group Inc (NYSE: GS) is playing the lead. What an auction it will be. For the leading retailer of musical instruments, the stock disappoints, the direct response business is out of tune. A Goldman analyst reportedly said the company is a turnaround candidate, but may sell. Talk about blowing your own horn. We hear the LBOs are lined up right outside the Westlake Village headquarters in California. Everyone have a number?

INFOSPACE INC (NASDAQ: INSP)

How many pesetas, uh Euros, does it take to make about a billion dollars? Ask Spain's LaNetro Zed. That's about what some think they're offering to buy InfoSpace, the developer of tools and technology that helps "regular" folk find content and information on the Internet or on their mobile. Privately-held LaNetro Zed provides mobile phone content and services. What's the hook here that they'd pay that much? Access to the U.S. market, of course. The answer, by the way, is about 800M Euros.

OFFICE DEPOT INC (NYSE: ODP)

If you just lined up $1B worth of borrowing, which could go up to $1.25B, what would you do with it? Buy something, maybe? Sound like a good idea? Well, that's what Office Depot just did, and may do. Now who are they going to buy? OfficeMax Inc (NYSE: OMX), maybe? Maybe. If true, then, along with Staples Inc (NASDAQ: SPLS), there would be just two biggies in retail office supplies, and the Depot would be number one.

OPENWAVE SYSTEMS INC (NASDAQ: OPWV)

And we're off! The stock has been on an upward trend for about a month. Volume is increasing. Sybase Inc (NYSE: SY) is in the lead to buy the phone browser and messaging company. What about Harbinger's push on the inside? Now it's BridgePort Networks in the pack. Will Openwave overtake it? The field is tightening. Others could move up and take the lead. No one knows for sure how this one gwill end, folks. What a finish it's going to be!

DILLARD'S INC (NYSE: DDS)

The founders may be seeking "strategic alternatives." Eyes wide open, please.

When musicians need to buy the tools of their trade, there is a Westlake Village, California outfit that stands ready with selection, expert advice and professional services.

Guitar Center (NASDAQ:GTRC) is a leading United States retailer of guitars, amplifiers, percussion instruments, keyboards and pro-audio and recording equipment. The firm operates over 200 Guitar Center stores and more than 95 facilities specializing in band instruments. The company is also the largest direct response retailer of musical instruments in the United States, through the catalog and website of wholly-owned subsidiary Musician's Friend.

The stock popped Monday, after an SEC filing revealed that Sageview Capital Master had boosted its GTRC holdings to 8.69% of shares last week. The move represented a rebound from the base of a six-month positive trading channel, where oversold MACD, Momentum, CCI and Stochastic technical parameters suggested the potential for a rise in price back toward the upper channel boundary. Brokers recommend the shares with four "strong buys," two "buys" and four "holds." Analysts see a 26% growth rate, through the next year. The GTRC Price to Sales ratio (0.65), Price to Book ratio (2.44) and Price to Cash Flow ratio (11.32) compare favorably with industry, sector and S&P 500 averages.

The stock is one of those used to calculate the S&P 600 SmallCap Index. Over the past 52 weeks, it has traded between $36.24 and $54.87. A stop-loss of $39.35 looks good here.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com.