TheChek News Flow

Nobia has received an offer to divest its French kitchen chain Hygena to Fournier SA, which manufactures and sells kitchens under the brands Mobalpa , Perene and SoCoo'c . Nobia intends to respond to the offer after consultation with employee representatives in accordance with French legal requirements. 

A divestment of Hygena would improve Nobias operating margin. For 2013, Hygenas net sales amounted to EUR 142 million and its operating profit was negative EUR 12,6 million. The effect on Nobias profit for 2014 is expected to amount to negative SEK 500 million, primarily attributable to impairment of goodwill and deferred tax assets, and will be reported as restructuring cost. 

Nobias intention to divest its French operations is a consequence of that Hygena the last years has impacted Nobia s operating profit negatively , despite extensive actions and investments. 

The offer includes all shares in Hygena Cuisines SAS for a purchase price of EUR 20 million on a cash and debt free basis, which is to be paid in cash upon completion of the transaction .

Alstom [EPA:ALO}, the French conglomerate, will continue to look for acquisitions in rail signaling following its purchase of GE's [NYSE:GE] business in the sector, according to a newswire report.

Henri Poupart-Lafarge, head of Alstom Transport, told reporters at the InnoTrans biennial rail trade fair that Alstom would seek opportunities in the consolidating area.

The executive did not disclose specifics but said Alstom would also consider joint ventures. He also said industrial shareholders would be welcomed, naming Russia's Transmashholding, in which Alstom already holds 25%, as one potential such partner. The Russian political situation has not affected any daily operations but both companies are closely watching events in Ukraine and hope they will ease, Poupart-Lafarge added.

The French government has an option to take up to a 20% Alstom stake, which was one condition for allowing Alstom to sell most of its energy business to GE for EUR 12.4bn. Poupart-Lafarge said this would just strengthen Alstom.

Alstom is the world's fourth-largest railway equipment provider, behind China-based CNR [HKG:6199] and CSR [HKG:1766] and Canada-based Bombardier [TSE:BBD], and it leads Germany's Siemens [XETRA:SIE].

Newswire Round-up

Liberty Global (Nasdaq: LBTYA) has no interest in any kind of tie-up deal with the UK-based phone network Vodafone (LSE: VOD), according to Michael Fries, chief executive of Liberty. The CEO of the London-headquartered telecoms and TV group made his comment during a television interview, the Financial Times reported.

The market report also noted revived speculation that the telecom giant AT&T (NYSE: T) of Dallas, Texas, might be interested in Vodafone.

Vodafone has a GBP 52.774bn (USD 86.546bn) market cap.

Source Financial Times

• We continue to see modest upside potential for global

US MArket closed lower, 3rd day in a row, Mixed PMI data & Tax inversion new law weighted on sentiment, influential sectors, financials (-0.7%) and technology (-0.2%) displayed relative strength at the start, but only the tech sector was able to end near its flat line. The top-weighted component, Apple (AAPL 102.64, +1.58), did some heavy lifting, while other influential names like Facebook (FB 78.29, +1.49) and Google (GOOGL 591.18, -6.09) ended mixed, Outside of technology, the energy sector (-0.3%) was the only other cyclical outperformer, while crude oil rose 0.7% to $91.55/bbl. The other

commodity-related sector—materials (-0.6%)—ended in line with the market. Volume were ahead of average @ 700mil shares...we saw demand in volatility VIX @ 14.93 +9.06%...US After Hours BBBY +7.5%, GTI -12.6%, AIR -3.5% following Earnings/Guidance...China markets remain supported by chatter of policymakers' easing of housing curbs, Goldman Sachs cut its China 2015 GDP forecast to 7.1% from 7.6% prior, forecasting policymakers would lower their 2015 target to 7.0% from 7.5% in 2014. CPI projections were also downgraded for 2014 and 2015 to 2.2% and 2.5% respectively...Japan PM Abe noted he would prefer some caution related to the impact of recent Yen weakness on local economies. Markets briefly interpreted that as an expression of discomfort related to the side-effects of weak-JPY policy pursued by the BOJ, sending USD/JPY down about 30pips below ¥108.50...Nikkei -0.28% Hang Seng +0.65% Shnaghai +1.45%

Eur$ 1.2850 S&P +0.15% EuroStoxx -0.03% FTSE -0.27% SMI -0.14% Dax Flat

- YAR NO : Norway Govt Parties Say Yara Must Stay in Norway: Finansavisen

- Yokohama Rubber (5101 JP) : -3.7% on Citi Dwg --> ML, CON

*JOHNSTON PRESS RAISED TO NEUTRAL VS SELL AT CITI

*REED ELSEVIER RAISED TO MARKET PERFORM AT BERNSTEIN

Long-fought proposals on roaming and spectrum ownership could be watered down, giving some breathing room for the EU’s large telecoms groups.

According to a draft proposal from the Italian presidency of the European Council seen by the Financial Times, there will be no change in wholesale roaming rates proposed with a review of the system in 2016.

The next commission starts work in November under the presidency of Jean-Claude Juncker, who has made development of the digital economy a priority. Analysts expect future legislative changes in telecoms regulation, such as the unbundling of fixed line networks, a fresh look at competition policy to encourage cross border co-operation and a pan-EU content market.

The paper lays out proposals for long-term spectrum licenses, which will be welcomed by an industry that has called for guarantees over their network ownership, saying: “All new rights of use of spectrum in bands . . . shall be granted with a minimum duration of 25 years, and in any case for a duration appropriate to incentivise investment and competition. Member states may grant rights of use of indefinite duration.”

The proposals will need to be negotiated by member states. Berec, the European group of regulators, has also been asked for input.

Analysts said that the larger companies would be pleased that no further burdens were to be imposed before the act is passed. One analyst, who declined to be named, said that Vodafone, for example, could benefit from the proposals as they stood as it “will probably still sell ‘Eurotraveller’ £3/€5 per day to use your bundle in the EU”.

At the same time, this person added, small telecoms companies without widespread European networks “will suffer a negative gross margin, making them less price competitive at home”. This is because they would still need to pay for wholesale rates to other European networks, while also not charging customers for roaming up to the “fair use” level.

The proposals say: “To prevent anomalous or abusive usage of retail roaming services, roaming providers may apply a ‘fair use clause’ to the consumption of regulated retail roaming services provided at the applicable domestic price level, by reference to fair use criteria.” This criteria will in part refer to the average European consumption.

Neelie Kroes, the outgoing commission vice-president and who announced the original proposals to look at roaming rates, said: “We feel the Italian presidency text has all the essential building blocks needed to push the telecoms market forward: ending roaming, a net neutrality guarantee, more co-operation on spectrum and consumer protection. It lacks some of the ambition of the commission text but it’s a good basis for further negotiations.”

(Reuters) - German auto supplier ZF Friedrichshafen will consider further acquisitions after agreeing a $13.5 billion takeover including debt of U.S. peer TRW last week, ZF's chief executive said on Tuesday.

"We have not reached the limits of our financing capabilities," Stefan Sommer said on the sidelines of the IAA commercial vehicles show.

Unlisted ZF, which is controlled by a foundation, wants to build up its commercial vehicles and industrial technology, he said. "Small, bolt-on acquisitions are certainly not excluded."

The unlisted company last week agreed to buy TRW, paying $105.60 in cash for each TRW share, or nearly $12 billion

based on outstanding shares.

The acquisition of Livonia, Michigan-based TRW, which makes airbags and electronic sensors, will create one of the largest auto supply firms in the world. ZF is itself a major provider of steering systems and drive trains.

With combined sales of over $40 billion, the merged company will be in the league of German companies like Robert Bosch and Continental as well as Japan's Denso.

Even without TRW, ZF expects to raise sales by more than 1 billion euros ($1.28 billion) to 18 billion euros this year, Sommer said.

* Yokohama Rubber (5101 JP) -3.6%, Sumitomo Rubber (5110 JP) -2.6%; cut to neutral at Citigroup