>>> MCM Advisors - July 2014 note from Frank K Martin - Good Read!!!!

Federal Reserve Chairman Alan Greenspan delivered a rather dry and complex speech on December
5, 1996. The reaction, however, to such a seemingly mundane oration was unexpectedly immediate
and powerful. It rattled Greenspan’s confidence. He had innocuously uttered the now infamous
phrase “irrational exuberance,” and the mighty market roared its disapproval.
For several days, Bloomberg screens turned an angry red around the world. The “Maestro” was no
David when he came face to face with Goliath. Greenspan cowered in the giant’s presence, fear
blinding him to the ogre’s fragilities. Sadly, it was an opportunity lost because it is in the crucible of
confronting giants—with everything on the line—that true grit makes the most difference in what
the future will hold.
....

--> see attached pdf for full comment

(MergerMarket) Urban Outfitters in ongoing M&A discussions; hopeful of deal this

Urban Outfitters in ongoing M&A discussions; hopeful of deal this year
Urban Outfitters (NASDAQ:URBN), the Philadelphia, Pennsylvania-based specialty retail company, will continue to engage in talks regarding potential acquisitions and hopes to announce a deal this year, CEO Richard Hayne said Monday.

On the 2Q15 earnings call, Hayne was asked for an update on the company’s M&A strategy.

“We have had many, many discussions with a number of parties,” he said, regarding acquisitions.

The CEO noted that the company was not in a hurry to make deals, describing market valuations as “a bit frothy” at present. He added that he would not overpay for targets.

“We keep having those discussions,” Hayne said. “And I think at some point, hopefully still this year, we may have something to report.”

A published report in June suggested Urban Outfitters as among those potentially interested in Australia-based activewear retailer Lorna Jane, which had previously been valued at AUD 500m (USD 467m).

On Urban Outfitter’s 2Q14 earnings call held August 2013, Hayne said the company planned to expand its product range and enter into adjacent business areas via internal development as well as external relationships, with the latter including licensing, partnerships, joint ventures and acquisitions. On that call, the CEO said Urban Outfitters had not typically sought these types of external relationships to achieve its expansion goals, but intended to more aggressively pursue this method in future.

“The partnerships and acquisitions we believe present the most potential are those that have a similar customer profile to one of our existing brands, have a management team that will augment or complement our existing expertise and those that offer strong growth opportunities,” Hayne said on the 2Q14 call.

The CEO said on the earlier call that smaller targets would be preferred to larger targets.

In 2008, the company bought Pennsylvania-based J. Franklin Styler Nurseries for an undisclosed sum. The target, engaged in landscape nurseries, had annual revenues ranging from USD 10m to USD 20m.

Urban Outfitters has a longstanding relationship with hometown-based law firm Drinker Biddle & Reath. Harry Cherken, a partner at the firm, has served on the company's board since 1989.

On Monday’s call, Urban Outfitters reported cash and marketable securities of USD 409m at quarter-end. The company has a market capitalization of USD 5.1bn

>>> Rocket Internet could sell stake to Holtzbrinck Ventures for EUR 400m-Die We

Rocket Internet could sell stake to Holtzbrinck Ventures for EUR 400m 

Rocket Internet, the German startup incubator and investor founded by the Samwer brothers, is mulling a stake sale to Holtzbrinck Ventures, the German newspaper Die Welt reported on 18 August, without citing a source. The transaction, valued at around EUR 400m, would come shortly before Rocket Internet is to go public, the article said.

The newspaper calculated that the recently announced investments and company valuations leave a gap of around EUR 400m. The implied 10% jump in company valuation within just one week is unusual and was also rejected by Rocket Internet, the article said, leaving room for speculation that Holtzbrinck, a long-time partner of the Samwer brothers, might buy a stake for exactly that amount. The article said that Holtzbrinck Ventures would have already bought into Rocket Internet if its fund statutes would have allowed to invest into an incubator. By now Rocket Internet is incorporated as limited eliminating that problem.

Rocket Internet and Holtzbrinck Ventures declined or did not respond with comment.


Die Welt

>>> Carillion improves offer for the company, offer values Balfour at £2.086B


Carillion improves offer for the company, offer values Balfour at £2.086B 
- Carillion announces that it has today put an improved merger proposal to Balfour Beatty. Carillion hopes that, on the basis of these improved terms, the Board of Balfour Beatty will now re-engage in discussions and extend the PUSU deadline. 
- Carillion continues to believe in the powerful strategic logic of a merger with Balfour Beatty and that, as a direct result of the merger, the cost-base of the combined group could be reduced by at least £175M per annum by the end of 2016, that earnings would consequently be significantly enhanced from that year and that these cost savings would represent a capitalised value of over £1.5 billion before any re-rating 
- Balfour Beatty had previously agreed to a 56.5% share for Balfour Beatty shareholders based on the current undiluted ordinary share capital of each of Balfour Beatty and Carillion, worth £1,886M 

- All-share merger of Carillion and Balfour Beatty; 

58.268% share for Balfour Beatty shareholders based on the current undiluted ordinary share capital of each of Balfour Beatty and Carillion; 

In addition to the interim dividend announced by Balfour Beatty last week and to the 2014 final dividend to which shareholders of the combined group would be entitled, Balfour Beatty shareholders to receive an additional cash dividend or equivalent of 8.5 pence per Balfour Beatty share (£59M in total);