NEW YORK (TheStreet) -- Shares of American Express Co. (AXP) are increasing 0.66% to $59.39 late Tuesday afternoon, as a report from Fox Business Network late yesterday suggested that the New York-based credit-card company could be bought by Wells Fargo & Co. (WFC) or another financial company.
Recent tensions at the company spurred speculation that American Express could seek a deal with an outside party, with unnamed sources suggesting Wells Fargo. Both companies denied the report.
TheStreet's Jim Cramer and Jack Mohr view the loose speculation as mere noise as not one report or source has emerged since the article was published.
(Wells Fargo is held in Jim Cramer's charitable trust Action Alerts PLUS. See all of his holdings with a free trial here).
"Wells Fargo is a high-quality, well-managed, large-cap, diversified -- yet domestic -- bank that has numerous levers to pull in order to drive earnings growth amid the difficult backdrop weighing on global bank revenues. The question is not whether it has dry powder at its disposal (it does), but which form of capital deployment maximizes shareholder value," Cramer and Mohr said in an Action Alerts PLUS article this afternoon.
"We see little value in wasting the capital on a bloated franchise with an eroding customer base," Cramer and Mohr added.
An American Express takeover bid is unlikely to come from Wells Fargo, according to analysts, TheStreet's James Passeri wrote in a RealMoney article this afternoon.
Shares of Wells Fargo are down 2.1% to $49.02 late Tuesday afternoon.