ETFs For BHP/Anadarko Rumors

This year has already been busy in terms of M&A activity in the enegy sector and 2011 could be just as busy if not more so with $90 billion in global energy assets up for sale, according to a recent Financial Times article. That sum does not include Anadarko Petroleum APC, the Texas-based independent oil and gas producer, that is once again the subject of takeover talks involving BHP Billiton BHP, the world's largest mining company. The rumor was first reported in September when the Australian newspaper cited unidentified sources as saying Anadarko would be a good backup plan for BHP if the Anglo-Australian mining giant could not acquire Potash Corp. POT. Well, we all know how the Potash deal fared and the U.K.'s Daily Mail reported today that BHP may preparing a $90 per share bid for Anadarko, a deal that would be worth $45 billion, more than BHP offered for Potash. Here are some ETF's to play from both the Anadarko and BHP side of this rumored deal. 1) iShares Dow Jones US Oil & Gas Exploration & Production Index Fund IEO: IEO is the ETF with the largest weight to Anadarko at almost 8% and the fund is a good overall play on enegy M&A. 2) SPDR S&P Oil & Gas Exploration & Production ETF XOP: This one is a bit of a stretch as Anadarko only accounts for 2.6% of this ETF's weight, but an Anadarko takeover could put some of XOP's smaller, but more heavily weighted constituents in play as well. 3) iShares S&P Global Materials ETF MXI: Various BHP securities account for about 18% of MXI's weight, making this fund to watch on any BHP acquisition news. 4) BLDRS Asia 50 ADR Index ADRA: Another BHP play as this ETF gives the mining giant a weight of 11.3%, according to ETFChannel.com.