Five Business Hookups You Might See

4. General Electric (GE Quote) to acquire Alcoa (AA Quote).

Why it makes sense: Sure, there are rumors of an AA takeover or leveraged buyout, but those rumor-mongers are looking at the wrong suitors. Don't let one good quarter from AA fool you. This is still one of the worst-run companies in the U.S.

GE is one of the best companies at managing industrials in the history of business. That is what AA needs. There is nothing fundamentally wrong with the aluminum business -- it's just that new leadership is necessary.

GE is in the process of selling the plastics business, which is a tough industry. GE can easily use the proceeds of the plastics sale to buy AA, although it has plenty of resources without the plastic sale. The deal would be immediately accretive to earnings.

Why it might not happen: GE is simply too big and may be looking to slim down rather than add on. There are other businesses beyond plastics that the company also needs to make some decisions about, namely NBC Universal.

5. Boeing (BA Quote) to merge with or acquire Ford (F Quote).

Why it makes sense: This sounds like a real wacky match, but the more I think about it, the more it might make sense. So hear me out.

Airplane, defense, automotive and truck manufacturing all require similar (but not necessarily the same) raw-material inputs and parts. Thus, a combined manufacturing effort would have economies of scale in terms of component and material purchasing.

Make the deal subject to a one-time, take-it-or-leave-it labor agreement, focusing on pensions and benefits. Get rid of the defined benefit programs. Ford Motor Credit and Boeing Capital can create a very powerful financial-services company. Consolidate the overhead and eliminate other wasted costs.

A healthy Ford without all of the recent writeoffs can probably make $1.50 per share. If you clean up the balance sheet, it might be more. Heck, if done right, this could be accretive to Boeing.

Why it might not happen: It's just too complex. Expecting the United Auto Workers to cave in would be expecting a miracle. Furthermore, I doubt if the Ford family egos would permit losing control of a failing company to having a hefty stake in a healthy one. I believe that they think that they would be better off to rule in hell than serve in heaven.