Wall Street Hubbub 7/14: iPhone 4 Recall, Penthouse-for-Playboy, BP's New Cap Is No Savior, KKR IPO, Treasury Weighs Citi (C) Options

Below is a run-down of juicy gossip and chatter going around Wall Street today

• Apple (Nasdaq: AAPL) has been mum on the recent scathing report from Consumer Reports that said, despite reassurance from the tech-leader, there is in fact a problem with the reception of the new iPhone 4. Today there is some speculation that Apple is quietly recalling some of the devices. Analysts don't see a full recall, and instead have been calling for free bumpers from Apple to solve the problem.
  
• BOTOX maker Allergan (NYSE: AGN) is seen as an attractive takeover target for a number of large pharmaceutical companies that are on the prowl for deals, including Sanofi-Aventis (NYSE: SNY) or Eli Lilly & Co. (NYSE: LLY). In addition to a potential takeover, possible approval for BOTOX for migraines in the U.S. is a catalyst for the stock.
  
• FriendFinder CEO, also the owner of Penthouse, said he plans to submit a bid for Playboy (NYSE: PLA) tomorrow. Playboy founder Hugh Hefner put the company in-play earlier in the week by offering $5.50 per share. Hef gave hints of his Playboy bid on Twitter last week.
  
• After much hope that its new cap will stop the gushing Gulf oil well, BP (NYSE: BP) delayed testing saying further analysis is needed. There is a fear that capping the well could create pressure in the well's formation, resulting in oil being released close to the surface of the sea floor and leaking somewhere else. BP has also temporarily stopped drilling on a relief wells, which is seen as the best chance to stop the oil leak. While the new cap may not be used to completely stock the flow, it can still be used to collect oil. While current oil collection efforts have slowed, they continue through the Helix Producer and Q4000.
  
• In a CNBC interview, the CEO of recent IPO CBOE Holdings (NYSE: CBOE) commented on speculation his company could be the target of a takeover. The CEO wouldn't comment, only saying that CBOE is a strong independent company and they run the company that way.
  
• Traders are all over VIVUS Inc. (Nasdaq: VVUS) ahead of an FDA committee meeting on the company obesity drug Qnexa tomorrow. Yesterday, FDA briefing documents were released which showed the drug was effective, although some questions about the drug's safety were raised. Wall Street analysts are mostly positive and expect approval although label questions remain.
  
• Despite blowout results, Wall Street's enthusiasm is tempered on Intel (Nasdaq: INTC) on fears that this "best ever quarter" could be the peak.
  
• Raised guidance from BMW yesterday could bode well for U.S. automaker Ford (NYSE: F). BMW said, "improved business conditions on the international automobile markets mean that the BMW Group now expects to report much better second-quarter and full-year earnings than previously forecast."
  
• Talk that the government could look to unload their remaining Citigroup (NYSE: C) shares through an secondary offering versus selling it in dribs and drabs. The U.S. has sold 2.6 billion shares of Citigroup so far, leaving them with 5.1 billion shares. The government is not selling stock currently due to Citigroup's earnings quite period. The government's shares are seen as an overhang on the stock.
  
• The IPO for private equity firm KKR (NYSE: KKR) will begin trading tomorrow. While investors still have a bad taste in their mouth from past private equity IPO deals, the deal could be greeted warmly.
  
• Oracle's (Nasdaq: ORCL) CEO Larry Ellison could make a bid for the NBA's Golden State Warriors.
  

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