WSJ : Lindt & Spruengli Sales Lifted by M&A

Lindt & Spruengli Sales Lifted by M&A
Swiss Chocolate Maker’s Sales Boosted by its Acquisition of Russell Stover Candies

ZURICH—Swiss chocolate maker Chocoladenfabriken Lindt & Spruengli AG said Tuesday that its 2014 sales increased by a better-than-expected 17.4%, helped by its acquisition of U.S. firm Russell Stover Candies LLC.

Kilchberg-based Lindt said its sales rose to 3.39 billion Swiss francs ($3.34 billion) in the year to Dec. 31, up from 2.88 billion francs a year earlier. The figure beat analysts’ expectations of 3.23 billion francs.

The company, famous for its Lindor truffles, said it had significant sales growth in all markets and expects operating income to match the previous year’s level. It will report full-year earnings on March 10.

>>> After Hours Summary: HEAR +11.9%, XENT +10.9%, PCYC +10.7%,

After Hours Summary: HEAR +11.9%, XENT +10.9%, PCYC +10.7%, ECOM -28%, BGFV -8.3%, WWW -7.9% following earnings/guidance

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings: HEAR +11.9%, XENT +10.9%, PCYC +10.7%, BEBE +7.7%, SNX +5.4%, HXL +4.1%, TLYS +3.4%, CNV +2.4%, AA +1.2%

Companies trading higher in after hours in reaction to news: BVX +19.1% (announced all J-Plasma disposable hand pieces as well as the Bovie Ultimate generator have received CE Mark approval for compliance with European Union safety, health and environmental protection requirements), GEVO +18.7% (co has launched sales of renewable isobutanol to Brenntag Canada), TOPS +6.0% (co entered into a sale and leaseback agreement for two of its vessels: the M/T StenaWeco Energy and the M/T StenaWeco Evolution), HXL +4.1% (co initiated a $0.10 per share quarterly dividend; co also provided guidance), RLH +3.7% (co entered into an agreement to sell its hotel in Bellevue, Wash. for $35.4 mln to an affiliate of Wig Properties), CLB +3.0% (increased quarterly dividend 10% to $0.55 from $0.50 per share), BLCM +2.1% (Baker Bros. Advisors disclosed 16.3% passive stake in 13G filing)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings: ECOM -28%, BGFV -8.3%, WWW -7.9%, LMNR -4.6%, GG -0.5%, VMI -0.2%

Companies trading lower in after hours in reaction to news: ANW -3.7% (announced proposed offering of $40 mln of additional 4.00% convertible senior notes due 2018), AIV -2.2% (announced it has commenced a public offering of 8.2 mln shares of its common stock), HPP -2.1% (announced it has commenced a public offering of 9.5 mln shares of common stock), BRX -1.6% (announced offering of 17.5 mln shares of common stock by selling stockholders), BURL -0.7% (announced offering of 12.5 mln shares of common stock by selling stockholders)

>>> Asian Update

Asian Mid-session Update: China 2014 trade balance missed official target; Japan posted smallest deficit in 5 months

***Economic Data***
- (NZ) New Zealand Dec ANZ Truckometer Heavy M/M: +2.1% v -2.9% prior
- (KR) South Korea Dec Export Price Index M/M: -2.4% v 1.3% prior; Y/Y: -4.3% v -2.1% prior
- (KR) South Korea Dec Import Price Index M/M: -5.1% v -0.8% prior; Y/Y: -13% v -7.9% prior
- (JP) JAPAN NOV CURRENT ACCOUNT: ¥433B V ¥140BE; ADJ CURRENT ACCOUNT: ¥915B V ¥693BE (7th consecutive surplus); TRADE BALANCE: -¥637B V -¥734BE (smallest deficit in 5 months)
- (JP) JAPAN DEC BANK LENDING INCL TRUSTS: 2.6% V 2.7% PRIOR; BANK LENDING EX-TRUSTS: 2.7% V 2.8% PRIOR
- (UK) UK DEC BRC SALES LFL Y/Y: -0.4% V +1.0%E; TOTAL SALES Y/Y: +1.0% V +2.2% PRIOR
- (CN) CHINA DEC TRADE BALANCE: $49.6B V $49.0BE

***Index Snapshot (as of 03:30 GMT)***
- Nikkei225 -1.8%, S&P/ASX -0.4%, Kospi -0.2%, Shanghai Composite +0.3%, Hang Seng +0.5%, Mar S&P500 +0.1% at 2,023

***Commodities/Fixed Income***
- Feb gold +0.3% at $1,236, Feb crude oil -1.8% at $45.25/brl, Mar Copper flat at $2.71/lb
- (JP) BOJ offers to buy ¥70B in JGB with maturity less than 1-yr, ¥400B in 5-10yr JGB
- (CN) PBoC won't conduct open market operations (OMO) in today's session (13th consecutive halt)
- JGB: (JP) 5-yr JGB yield drops to zero for the first time; 10-yr yield hits record low near 0.255%
- (TW) Taiwan to sell NT$25B in 6-month bills; Yield: 0.490% v 0.530% prior; bid-to-cover: 3.02x

***Market Focal Points/Key Themes/FX***
- China released December trade balance today at a surplus of $49.6B, slightly higher than consensus of $49.0B surplus. China December adjusted exports grew at 6.6% y/y, while adjusted imports shrank 6.2% y/y. Overall in 2014, China's trade growth was at 3.4% y/y, missed official target of 7.5%. China Customs Bureau official said weak 2014 trade growth due to slow global recovery, also forecasted 2015 trade growth to be higher than 2014. Taking a look at some components, iron ore imports rose to 86.9M tons, and crude oil imports rose to 30.4M, both at record high level. Aussie/Dollar traded initially higher to just below 0.82 level, then moved back lower during the later session.

- Japan released November adjusted current account figure at surplus of ¥915B, beating consensus of ¥693B, also marked 7th consecutive surplus. Trade balance for Japan was at a deficit of ¥637B, a smaller deficit than ¥734B expected, also the smallest trade deficit for Japan in 5 months. JGBs moved higher on today's session amid BoJ buying. Yield for 5-year JGB dropped to zero for the first time in history, while 10-year JGB yield hit record low near 0.255%. Dollar/Yen moved below ¥118 handle after Japan trade balance data, then traded back higher to about ¥118.40 in later Asian session, on stronger Dollar across the currency board.

***Equities***
US markets:
- BEBE: Reports prelim Q2 SSS +8%; Sees Q2 adj loss per share in low single digit range, high end; +18.6% afterhours
- PCYC: Reports prelim Q4 net product revenue $185M; Guides FY14 Imbruvica sales $492M and FY15 Imbruvica sales $1B; +11.1% afterhours
- XENT: Reports preliminary Q4 R$13.2-13.4M v $11.6Me; +10.9% afterhours
- SNX: Reports Q4 $1.83 v $1.70e, R$3.82B v $3.72Be; +5.7% afterhours
- HXL: Reports prelim FY14 adj $2.16 v $2.15e, Rev $1.86B v $1.85Be; Initiates quarterly dividend of $0.10/shr (implied yield 1.0%); +4.1% afterhours
- NEWP: Guides Q4 Rev $156M or higher v $154Me - conf presentation materials; +2.1% afterhours
- AA: Reports Q4 $0.33 v $0.26e, R$6.38B v $6.02Be; +1.5% afterhours
- AGIO: Celgene Agrees to Exercise its Option to License AG-120 under Global Strategic Collaboration; +1.1% afterhours
- VMI: Cuts FY14 $8.10-8.20 adj v $8.59e (prior $8.55-8.65); -0.2% afterhours
- WWW: Reports prelim Q4 R$808M v $789Me, FY14 at high end of $1.57-1.63 v $1.61e, R$2.76B v $2.74Be; Guides initial FY15 EPS flat y/y (implies $1.57-1.63 v $1.76e); -6.8% afterhours
- BGFV: Reports prelim Q4 $0.14-0.16 v $0.20e, R$250.3M v $257Me, SSS -0.5%; -8.3% afterhours
- ECOM: Lowers Q4 Rev guidance to $23.7M v $25.9Me (pior $25.6-26.1M); -29.6% afterhours

Notable movers by sector:
- Consumer Discretionary: Air China 601111.CN +1.6%, China Southern 600029.CN +0.5% (WTI crude lower)
- Financials: Huatai Securities 601688.CN +0.5% (Dec op results)
- Materials: BBMG 2009.HK -6.3% (FY14 guidance); Alumina AWC.AU +3.6% (Q4 production)
- Energy: JX Holdings 5020.JP -2.0% (to miss guidance)
- Industrials: Cardno Ltd CDD.AU -7.9% (appoints acting CEO)

>>> Alcoa beats by $0.06, beats on revs; co reports record quarter cash from ope

AA --> +1% After Hours

Alcoa beats by $0.06, beats on revs; co reports record quarter cash from operations of $1.5 billion 

Reports Q4 (Dec) earnings of $0.33 per share, excluding non-recurring items, $0.06 better than the Capital IQ Consensus Estimate of $0.27; revenues rose 14.2% year/year to $6.38 bln vs the $6.03 bln consensus.

Some key highlights:
- Global Rolled Products after-tax operating income more than triples year-over-year, auto growth continues
- Upstream business improves performance for 13th consecutive quarter
- Alumina after-tax operating income up more than twofold year-over-year
- Primary Metals adjusted EBITDA per metric ton strongest since second quarter 2008
- Record quarter cash from operations of $1.5 billion Free cash flow of $989 million, highest since fourth quarter 2010
- Alcoa projects 7% global aluminum demand growth in 2015

>>> US Close Dow-0,54% S&P-0,81% Nasdaq-0,84% Russell-0,47%

Closing Market Summary: Energy Sector Leads Stocks Lower

The stock market began the new week on the defensive with the Nasdaq (-0.8%) and S&P 500 (-0.8%) pacing the slide. The Dow (-0.5%) and Russell 2000 (-0.3%) outperformed, but the two indices also spent the bulk of the day in negative territory.

Equity indices opened the trading day with slim gains that evaporated during the first few minutes of the session. The S&P 500 slumped back below its 50-day moving average (2046) at the start and spent the rest of the day well below that level as influential sectors weighed.

Most notably, the energy sector (-2.8%) was the weakest performer with crude oil contributing to the pressure after Goldman Sachs lowered its short-term forecast for the commodity. WTI crude ended the pit session on its low, down 4.9% at $46.07/bbl.

Meanwhile, the remaining cyclical groups registered slimmer losses, but heavily-weighted financials (-0.9%) and technology (-1.3%) kept the market under pressure throughout the session.

The top-weighted tech sector spent the day in a steady retreat as components of all sizes registered losses. Large cap names like Apple (AAPL 109.25, -2.76), Google (GOOGL 497.06, -3.66), and Microsoft (MSFT 46.60, -0.59) lost between 0.7% and 2.5%, while chipmakers also lagged with the PHLX Semiconductor Index falling 2.0%.

To be fair, a small pocket of relative strength could be found among cybersecurity names after President Obama spoke about online safety, and is expected to touch on the subject once again during the State of the Union Address on January 20. Cyber-Ark Software (CYBR 38.37, +1.31) and FireEye (FEYE 35.29, +1.61) gained 3.5% and 4.8%, respectively.

Elsewhere, biotechnology names also found themselves among the outperformers, thanks in large part to Celgene (CELG 117.00, +3.33). The stock soared 2.9% after the company issued guidance for 2015 at the JP Morgan Healthcare Conference. Meanwhile, the iShares Nasdaq Biotechnology ETF (IBB 315.06, +1.74) gained 0.6% while the health care sector (-0.1%) could not stay above its flat line.

Similar to health care, countercyclical consumer staples (-0.3%) and utilities (-0.3%) outperformed while the telecom services sector (+0.6%) spent the day in the green.

Treasuries slumped overnight, but spent the day in a steady advance. The benchmark 10-yr yield fell four basis points to 1.91%.

Today's participation was roughly in-line with average as nearly 760 million shares changed hands at the NYSE floor.

Tomorrow, the Job Openings and Labor Turnover Survey will be released at 10:00 ET while the Treasury Budget for December (consensus $3.00 billion) will be reported at 14:00 ET.
  • Dow Jones Industrial Average -1.0% YTD 
  • S&P 500 -1.5% YTD 
  • Nasdaq Composite -1.5% YTD 
  • Russell 2000 -2.0% YTD

>>> Santander draws EUR 500m investment from Soros

Santander draws EUR 500m investment from Soros 

George Soros, the US-based investor, is understood to have invested EUR 500m in Banco Santander's recent EUR 7.5bn capital increase, El Mundo reported.

The Spanish-language daily cited financial sources with knowledge of the matter for the information.

Santander announced on Friday, 9 January, that it had successfully concluded the capital increase, which was directed at institutional investors.

El Mundo

(BN) Shire Hunt for Next Target Spotlights PTC to Synageva: Real M&A

Shire Hunt for Next Target Spotlights PTC to Synageva: Real M&A
2015-01-12 19:29:06.901 GMT


(For a Real M&A column news alert: SALT REALMNA <GO>.)

By Tara Lachapelle
(Bloomberg) -- Shire Plc just announced its biggest
takeover yet, and it’s already hinting at another one.
The Dublin-based drugmaker is buying NPS Pharmaceuticals
Inc. for $5.2 billion, just one year after completing the $4.2
billion purchase of ViroPharma Inc. Given the cash Shire
generates -- about $400 million per quarter on average -- this
latest transaction won’t limit the $42 billion company from
pursuing future deals, which it needs to become a leader in
biotechnology, Chief Executive Officer Flemming Ornskov said in
an interview.
Shire’s takeover criteria continue to include high-margin
treatments for rare diseases, particularly already-approved or
late-stage products. With the $1.6 billion breakup fee it
received when AbbVie Inc. dropped a plan to buy the company late
last year, Shire’s financial leverage will be relatively low,
according to CRT Capital’s Timothy Chiang.
“Their balance sheet is still relatively clean,” Chiang
said in a phone interview from Stamford, Connecticut. “M&A
remains a recurring theme.”
Here are a handful of drug developers with products in the
later stages of the testing and approval process that are valued
at $100 million to $10 billion, according to data compiled by
Bloomberg:

PTC THERAPEUTICS INC. -- The $1.8 billion company applied last
month for U.S. Food and Drug Administration approval to market
its treatment Translarna for a rare genetic muscle disorder
called nonsense mutation Duchenne muscular dystrophy. It is
already approved in the European Union and has been granted
orphan-drug status in both regions, which extends its market
exclusivity. Revenue at South Plainfield, New Jersey-based PTC
is projected by analysts to surge to more than $500 million by
2018 before topping $1 billion beginning in 2020.

SYNAGEVA BIOPHARMA CORP. -- Shares of Lexington, Massachusetts-
based Synageva have surged 53 percent since early November, when
it reported positive phase 3 study data for its drug for
lysosomal acid lipase deficiency, which can cause cirrhosis of
the liver and accelerate atherosclerosis. The $4 billion company
requested a priority review from the FDA, which would shorten
the agency’s decision time to 8 months from about a year.
Analysts forecast more than $500 million in sales starting in
2019.

RETROPHIN INC. -- A smaller candidate at just $363 million,
Retrophin has an orphan-designated treatment undergoing a phase
2 trial for focal segmental glomerulosclerosis, which can cause
kidney failure. It also has approved drugs for gallstones and
hypertension. Shares of the New York-based drug developer have
risen 18 percent in the past year.

ULTRAGENYX PHARMACEUTICAL INC. -- This $1.7 billion
biotechnology company focused on rare diseases is projected to
generate more than $500 million of annual revenue beginning in
2022. A phase 3 study is under way for its therapy for a
metabolic disorder that affects most tissues and organs, and can
cause stillborn babies and infant deaths. The Novato,
California-based drug developer also received orphan status for
treating a syndrome that causes the brain to not function
properly because it doesn’t get enough glucose.

Bigger Ambitions -- Should Shire desire a larger target,
BioMarin Pharmaceutical Inc. and Vertex Pharmaceuticals Inc. are
options. San Rafael, California-based BioMarin, valued at about
$14 billion, touched a record $98.63 Monday and has a slate of
experimental treatments for rare diseases and cancer. Revenue
may climb above $1 billion next year and then top $2 billion in
2019. At $29 billion, Boston-based Vertex would be an even
larger merger partner. It’s already generated more than $1
billion of annual sales and the stock has risen 53 percent in
the past year.

A representative for BioMarin said the company doesn’t
comment on speculation. Representatives for PTC, Synageva,
Retrophin, Ultragenyx and Vertex didn’t immediately respond to
requests for comment.

For Related News and Information:
Shire May Extend Takeovers After Buying NPS for $5.2 Billion
Drug Buying Spree Still Bustling as Pfizer Leads Hunt: Real M&A
Shire Said to Consider Bid for NPS as It Revisits Takeovers
Real M&A columns: NI REALMNA <GO>
Top deal stories: DTOP <GO>
Merger Calculator: MRGC <GO>
M&A Data: MA <GO>

To contact the reporter on this story:
Tara Lachapelle in New York at +1-212-617-8911 or
tlachapelle@bloomberg.net
To contact the editors responsible for this story:
Beth Williams at +1-212-617-2307 or
bewilliams@bloomberg.net
Elizabeth Wollman