*UKRAINE STOPS RUSSIA MILITARY VEHICLES FROM CROSSING BORDER
*LAVROV HAS NO INFORMATION ON UKRAINE MILITARY INCIDENT THIS AM
BN 08/25 07:21 *STATOIL CEO HELGE LUND COMMENTED IN INTERVIEW IN STAVANGER
BN 08/25 07:21 *STATOIL SAYS TOO EARLY TO SAY IF TO BE ROSNEFT DRILLING NEXT YR
BN 08/25 07:21 *STATOIL ALLIGNING ROSNEFT AGREEMENT TO ENSURE COMPLY W/SANCTION
BN 08/25 07:21 *STATOIL CEO WON'T SAY WHICH PROJECTS W/ROSNEFT WILL BE AFFECTED
BN 08/25 07:21 *STATOIL SAYS ROSNEFT CO-OPERATION CHALLENGING AFTER SANCTIONS
BN 08/25 07:21 *STATOIL SAYS TOO EARLY TO SAY IF TO BE ROSNEFT DRILLING NEXT YR
BN 08/25 07:21 *STATOIL ALLIGNING ROSNEFT AGREEMENT TO ENSURE COMPLY W/SANCTION
BN 08/25 07:21 *STATOIL CEO WON'T SAY WHICH PROJECTS W/ROSNEFT WILL BE AFFECTED
BN 08/25 07:21 *STATOIL SAYS ROSNEFT CO-OPERATION CHALLENGING AFTER SANCTIONS
*STATOIL SAYS TOO EARLY TO SAY IF TO BE ROSNEFT DRILLING NEXT YR
2014-08-25 07:24:09.282 GMT
--BENJAMIN DOW
-0- Aug/25/2014 07:24 GMT
2014-08-25 07:24:09.282 GMT
--BENJAMIN DOW
-0- Aug/25/2014 07:24 GMT
eircom opts for sale rather than IPO
eircom, the Irish telecoms group, is believed to have abandoned any plans for a flotation, the Irish Independent reported, citing a weekend report.
The company has decided instead to try and find a buyer, the report said, noting that its advisers have been recommending a sale to a private-equity house or trade buyer.
The move is thought to be backed by eircom’s owners, which include the private-equity firm Blackstone, the item said.
A flotation had been expected to value eircom at approximately EUR 3bn, the report said, adding that the potential float proceeds had been earmarked for paying down debt.
Source Irish Independent
After closing slightly down on friday, S&P is trading higher this morning Futures are +0.43% higher...
USD was firmly bid in the opening hours of the Asia session, rising about 0.3% against EUR (50 pips below 1.3190) and JPY (40 pips above 102.20) to hit respective 7- and 11-month highs. FX market action implying a greater conviction that Yellen was less dogmatically dovish - giving credence to a more even handed debate about risks of normalizing policy too early AND too late. Reports also suggesting Yellen may be more willing to accept the possibility of structural changes producing labor slack, which would deem extended use of easy monetary policy less effective. In contrast, there is no debate that Friday comments from ECB's Draghi and BOJ's Kuroda were substantially more dovish. Draghi was increasingly vocal to prefer more policy adjustment to austerity and fiscal consolidation. Kuroda noted inflation is still just halfway to meeting its target, and that he will not hesitate to adjust policy "if we fall short of the inflation goal."...As european mkts stay volatile on Ukraine situation, Minsk summit will be closely monitored...M&A announcement (ITMN/ROG...THI/BKW...) also helpening semtiment this morning...Nikkei +0.54% Hang Seng +0.21% Shanghai -0.22%
Eur$ 1.3206 S&P +0.43% SX5E +0.97% FTSE Closed DAX +0.86% SMI +0.54%
Keep an eye on :
- ACS SM : ACS Seeks to Sell Renewable Energy Assets, Confidencial Reports
- AIR FP : Airbus considers sale of Atlas Elektronik stake; could prompt new bid from Thales
- AIR FP : Galileo Satellites Missed Targeted Orbit, Arianespace Says
- BBY LN : Balfour May Boost Its Infrastructure Investments: Sunday Times
- BG/ LN : said to be in talks to sell stake in Tanzanian Gas Field (BG hold 60% stake in Block 3)
- BELG BB : Bpost/Belgacom stake sale not a priority for Belgian government
- BKIA SM : Spain Won’t Sell More Bankia Shares Before October, EP Reports
- BPOST BB : Bpost/Belgacom stake sale not a priority for Belgian government
- CON GY : Continental to Extend French Distribution Network, Figaro Says
- DL NA : Delta Lloyd Considers Offer for Insurer Vivat: Telegraaf Link
- IM NA : Imtech Hires Goldman Sachs for Negotiations on Debt: FD Link
- NESN VX : Nestle Buyback Starts Today, Runs Through Dec. 30, 2015
- NOK1V FH : The Finnish network equipment maker Nokia’s Here mapping service could be in the radar for the Chinese GeoStar, according to Kauppalehti.
- POG LN : Said to be in talks with a China state bank regarding possible bailout
- ROG VX : Roche Agrees to Buy Intermune in $8.3b Transaction, 38% premium vs Fr. close
- ROG VX : Chugai Falls Most in 3 Yrs; Roche Said to Decide to Drop Buyout
- RTL BB : RTL Group Should Pay its Taxes, Hungarian Government Says: WSJ
- SIE GY : Siemens Aims to Make Offshore Wind Farms Cheaper: Handelsblatt
- TEF SM : Telefonica Considers Raising Bid for Vivendi’s GVT: Messaggero {NSN NAR3AZ6TTDS0 <go>}
- TFI FP : TF1 Signs Star Wars Accord With Walt Disney France: Le Figaro
- UCB BB : Actavis Confirms Patent Challenge for Generic of UCB’s Neupro
- VIV FP : Vivendi Well-Placed With Offers From GVT Suitors, Investir Says {NSN NARC8H6TTDS0 <go>}
- VVT LN : Delta Lloyd Considers Offer for Insurer Vivat: Telegraaf Link
- WPP LN : WPP’s Russia Profit to Fall Over Ukraine, Sorrell Tells Express
- WRT1V FH : Possibility Rolls Royce may consider another Wartsila offer remains - Arvopaperi
>>> Up
*ARKEMA RAISED TO BUY AT DEUTSCHE BANK
*EURAZEO RAISED TO BUY VS HOLD AT SOCGEN
*SYNTHOMER RAISED TO BUY AT DEUTSCHE BANK
*UNIBAIL-RODAMCO RAISED TO BUY VS HOLD AT SOCGEN
>>> Down
*BAUER CUT TO HOLD VS BUY AT BANKHAUS LAMPE
*UMICORE CUT TO SELL AT DEUTSCHE BANK
>>> PT changes
>>> Initiation
>>> Call
Pfizer is considering its acquisition options as a potential path opens this week for the US drugmaker to renew its pursuit of AstraZeneca.
Tuesday marks three months since the collapse of Pfizer’s £69.4bn takeover approach for Britain’s second-biggest
From that point onwards AstraZeneca would be allowed under UK Takeover Panel rules to invite Pfizer back to the negotiating table, or the US company would be permitted to make one fresh take-it-or-leave-it offer in private.
Pfizer is barred under those rules from talking publicly about any renewed interest in AstraZeneca but Ian Read, chief executive, has said he is continuing to look “aggressively” at potential acquisitions.
Speculation about a possible new bid has lifted AstraZeneca’s shares by 7.5 per cent in the past week to £44.18 but they remain well below the £55 per share cash and stock Pfizer offer that was rejected in May.
Analysts and bankers rate the chances of an immediate resumption of talks as low because AstraZeneca appears as committed as ever to its go-it-alone strategy – talking up the prospects of its drug pipeline and highlighting the risks of a disruptive merger.
Several big AstraZeneca shareholders made clear in May that they would have favoured more talks with Pfizer but there has been no sign of a concerted campaign to force the board back to the table.
Aside from the private one-shot offer allowed after Tuesday, Pfizer cannot take any further steps without an invitation from AstraZeneca to engage.
Only in November, when the full six-month cooling-off period expires, would Pfizer be allowed to make a fresh approach in public.
Analysts say AstraZeneca remains an attractive target for Pfizer, which is looking for acquisitions to replenish its pipeline and to absorb some of the tens of billions of dollars of cash it has trapped offshore.
However, any new bid would face political risks on both sides of the Atlantic.
A Pfizer takeover of AstraZeneca would be by far the biggest of the so-called “tax inversions” by US companies that are facing increasing opposition in Washington.
By acquiring AstraZeneca and shifting its official home to the UK, Pfizer would shelter its overseas revenues from the 35 per cent US corporate tax rate.
US President Barack Obama has branded companies attempting such deals as “corporate deserters” and threatened executive action to stop them, while Democrats on Capitol Hill are working on legislation to halt the practice.
The decision this month by Walgreens, the US pharmacy chain, to pass up an opportunity to move its tax home to Switzerland as part of a deal with Alliance Boots has been seen as a sign that political pressure is starting to deter inversions.
Some bankers and analysts believe Walgreens was especially sensitive to the controversy because it is a consumer-facing business and say that Pfizer is less likely to be discouraged by rhetoric alone.
These people predict that Pfizer would prefer to delay any fresh inversion attempt until after the US midterm elections in November to avoid making itself a campaign issue. However, the longer Pfizer delays, the greater the political risks would be in the UK as parties gear up for next May’s general election.
Pfizer’s initial approach last spring sparked calls from the opposition Labour party for any deal to be subjected to a public interest test, with the prospect of government intervention if it were found to threaten the UK science base. This debate would be amplified further in the run-up to polling.
Valuation could also remain an obstacle given the impasse last May between Pfizer’s £55-per-share final offer and AstraZeneca’s demand for at least £58.50 before it would consider a deal.
Burger King in Talks to Buy Tim Hortons in Canada Tax Deal
Tie-Up Would Be Structured as Tax Inversion With a Combined Market Value of About $18 Billion
Burger King Worldwide Inc. BKW +1.01% is in talks to buy Canadian coffee-and-doughnut chain Tim Hortons Inc., THI.T +2.79% a deal that would be structured as a so-called tax inversion and move the hamburger seller's base to Canada.
The two sides are working on a deal that would create a new company, they said in a statement, confirming a report on the talks by The Wall Street Journal. The takeover would create the third-largest quick-service restaurant provider in the world, they said.
Inversion deals have been on the rise lately, and are facing stiff opposition in Washington given that they threaten to deplete U.S. government coffers. A move by Burger King to seal one is sure to intensify criticism of them, since it is such a well-known and distinctly American brand.
A person familiar with the matter said a deal between the two companies could be struck soon, though additional details on timing couldn't be learned. Tim Hortons has a market value of about $8.4 billion, while Burger King's is about $9.6 billion, so together the restaurant companies are currently worth about $18 billion.
By moving to a lower-tax jurisdiction, inversion deals enable companies to save money on foreign earnings and cash stowed abroad, and in some cases lower their overall corporate rate. Even though many of the headline-grabbing inversion deals of late have involved European companies, Canada has also been the focal point for a number of them, given its proximity and similarity to the U.S. Canada's federal corporate tax rate was lowered to 15% in 2012.
Valeant Pharmaceuticals International Inc., VRX.T +3.06% which had been based in California, combined with Canada's Biovail Corp. in 2010 and redomiciled in Canada. The company now has a tax rate less than 5%.
After a tide of tax-inversion deals—including AbbVie Inc. ABBV +0.44% 's agreed purchase of Ireland's Shire SHPG +0.04% PLC and Medtronic Inc. MDT -0.80% 's agreement to buy Ireland's Covidien COV -0.85% PLC, with other deals expected in the coming months—the White House called on Congress to take steps to prevent companies from pursuing inversions. The Treasury Department recently said it is assembling a list of options to deter or prevent the deals for Secretary Jacob Lew to consider.
Nevertheless, Burger King, whose initial approach to Tim Hortons came more than a month ago, doesn't plan to have a provision in a merger agreement that would allow it to walk away from a deal if laws are passed that diminish the benefits of inverting, people familiar with the matter said.
In the current wave of such deals, most inversions have been struck by health-care companies. An inversion deal by Burger King would suggest that the deals have wider appeal beyond the health industry, as companies from a range of industries consider ways to become more competitive from a tax perspective.
Burger King was founded in 1954 with a single restaurant in Miami, where it is now based. It has since grown to be the world's second-largest hamburger chain, according to the company's website. There are more than 13,000 Burger King locations in nearly 100 countries, serving more than 11 million people daily, the site says.
Tim Hortons, based in Oakville, Ontario, is well-known for its coffee, a high-margin business line in which U.S. fast-food giants have raced to grab market share. Burger King has been adding more coffee items and flavors to its menus to catch up with rival McDonald's Corp. MCD -0.08% , which has had success with a specialty coffee line called McCafe. Burger King paired up with Seattle's Best Coffee, a brand owned by Starbuck's Corp., to help its effort gain traction.
In 1995, Wendy's Co. WEN +1.04% acquired Tim Hortons. At the time, the fast-food company's executives were looking for growth outside of the burger market.
Activist hedge fund Pershing Square Capital Management, run by William Ackman, and Trian Fund Management later accumulated stakes in Wendy's and demanded that the company spin off the Canadian chain, which it did in 2006.
Last year, hedge funds Scout Capital Management LLC and Highfields Capital Management LP announced stakes in Tim Hortons and called for the company to curtail its U.S. expansion plans and increase its leverage to buy back more shares.
3G, which has offices in Rio de Janeiro and New York, has become a major player in the U.S. food sector, with a taste for iconic brands. Billionaire co-founder Jorge Paulo Lemann was a big shareholder in brewer InBev and helped engineer its 2008 acquisition of Anheuser-Busch. 3G last year teamed up with Warren Buffett to buy U.S. ketchup maker H.J. Heinz Co. for $23 billion, one of the largest deals of the year.
A key rationale for the deal is the potential to leverage Burger King's expertise in global development to boost Tim Hortons' international growth, the companies said, adding they plan operate the two as stand-alone brands.
Asian Market Update: USD gains as investors conclude Yellen shifted into "Neutral"
***Economic Data*** - (HU) Hungary Aug GKI Business Confidence: 2.2 v 1.4 prior, Consumer Confidence: -21.9 (9-month low) v -18.9 prior
***Index Snapshot (as of 02:30 GMT)*** - Nikkei225 +0.2%, S&P/ASX -0.3%, Kospi +0.1%, Shanghai Composite -0.8%, Hang Seng -0.6%, Sept S&P500 +0.1% at 1,990
***Commodities/Fixed Income/Currencies*** - Dec gold -0.1% at $1,279, Oct crude oil -0.2% at $93.50/brl, Sept Copper flat at $3.20/lb - (KR) South Korea sells 20-yr bond at average yield of 3.305% - (JP) BOJ offers to buy ¥450B in CP - USD/CNY: (CN) PBoC sets yuan mid point at 6.1653 v 6.1617 prior setting (weakest setting since Aug 6th)
***Market Focal Points/Key Themes*** - USD was firmly bid in the opening hours of the Asia session, rising about 0.3% against EUR (50 pips below 1.3190) and JPY (40 pips above 102.20) to hit respective 7- and 11-month highs. FX market action implying a greater conviction that Yellen was less dogmatically dovish - giving credence to a more even handed debate about risks of normalizing policy too early AND too late. Reports also suggesting Yellen may be more willing to accept the possibility of structural changes producing labor slack, which would deem extended use of easy monetary policy less effective. In contrast, there is no debate that Friday comments from ECB's Draghi and BOJ's Kuroda were substantially more dovish. Draghi was increasingly vocal to prefer more policy adjustment to austerity and fiscal consolidation. Kuroda noted inflation is still just halfway to meeting its target, and that he will not hesitate to adjust policy "if we fall short of the inflation goal."
- Merger-mania Monday is abuzz with two large deals announced over the weekend. InterMune agreed to be acquired by Roche at $74/shr in a $8.3B deal, which is also weighing heavily on Japan's Chugai Pharmaceutical after recent speculation that it would be Roche's acquisition target. Fast-food giant Burger King confirmed press reports it was in preliminary talks to merge with Tim Horton that would result in the world's third-largest quick service restaurant company. BK did note the transaction remains subject to negotiation of definitive agreements.
- Ahead of Monday's Minsk summit, German Chancellor Merkel struck a measured tone, calling for a solution that does not harm Russia and allows Ukraine to pick its own fate. Merkel said she is welcoming the summit, but warned they probably will not bring any "decisive breakthrough". Recall earlier on Friday, Russian humanitarian convoy refused to wait for Ukraine approval, rolling through the border without full inspection by the Red Cross and prompting accusations of an invasion from Kiev's Defense Ministry officials.
***Equities*** US markets: - THI: Burger King in talks to acquire Tim Hortons; Deal could be reached soon - financial press - ITMN: To be acquired by Roche at $74.00/shr in an all-cash deal valued at approx $8.3B on fully diluted basis - QIHU: Reports Q2 $0.50 v $0.43e, Rev $317.9M v $295Me - AMZN: Said to be developing its own advertising software aimed at competing with Google adwords - financial press - GS: Announces settlement agreements with FHFA over RMBS sales; Goldman to repurchase $3.15B in RMBS sold to Fannie and Freddie
Notable movers by sector: - Materials: Bluescope Steel BSL.AU -12.5% (FY14 results); Western Areas WSA.AU +1.9% (FY14 results); Orora Ltd ORA.AU +9.9% (FY14 results) - Energy: Beach Energy BPT.AU 0.7% (FY14 results); Goldwind 2208.HK +18.3% (H1 results); Sinopec 386.HK +1.7% (H1 results) - Industrials: Leighton Holdings LEI.AU -0.2% (to sell marine unit); BYD 1211.HK -3.4% (H1 results); Great Wall Motor 2333.HK +3.6% (final H1 results) - Healthcare: Chugai Pharmaceutical 4519.JP -8.9% (Roche CEO declines to comment on acquisition speculation); Sinopharm 1099.HK +2.3% (H1 results)