Marcial Law: Barely Credible Rumor Boosts American Express

Business Week Friday revived the market's interest in the Marcial arts, igniting a rally in a widely followed stock with a report that scarcely seemed credible.

American Express (AXP Quote) jumped more than 7% after talk of a Citigroup (C Quote) takeover hit the Street. Citing policy, both companies declined to comment. But the buzz had some financial experts scratching their heads.

Gene Marcial's oft-derided Inside Wall Street column in BW speculates that Citigroup CEO Sandy Weill is "determined" to acquire American Express, the company he aspired to run years ago. But Robert Napoli, analyst at ABN Amro in Chicago, says the deal makes no sense, financially or operationally, for Citi. Meanwhile, American Express has long indicated it prefers to remain independent. Additionally, Dan Goldfarb, a brokerage exec featured as a source in the article, downplays the speculation, saying the rumor has bobbed around the financial markets for years. ...