>>> Weir considers EUR 12-per-share offer for Outotec; Joy Global and Metso like

Weir considers EUR 12-per-share offer for Outotec; Joy Global and Metso likely rival bidders 

Weir Group, the UK-listed engineer, is considering making an offer for the Finnish-listed company Outotec, The Times reported.

The report pointed out that both companies supply industrial pumps to the mining sector but around 15% of Outotec is an industrial water-treatment operation. As Weir left that market a few years ago, it is not likely to be interested in that part of Outotec and, in the event of a takeover offer, would have to find an acquirer willing to take it on, the unsourced report said.

The report noted that Outotec is valued at approximately EUR 1.4bn, while Weir is worth just under GBP 5.9bn (EUR 7.5bn).

The Daily Mail reported that Weir is believed to be prepared to make an offer for Outotec worth EUR 12 per share. Outotec currently trades at about EUR 7.55 per share, the report noted. However, two rival acquirers are also interested in the Finnish group - Joy Global of Wisconsin, and Finland-based Metso. The unsourced market report noted that Weir unsuccessfully attempted to acquire Metso earlier this year, and said the Scottish company is now willing to offer a premium to ensure the acquisition of Outotec.


Source The Times (London), Daily Mail

>>> Wincor Nixdorf would not rule out acquisitions to gain technologies and roun

Wincor Nixdorf would not rule out acquisitions to gain technologies and round off the portfolio

Wincor Nixdorf, the listed German cash machine technology specialist, could acquire to gain technologies, Finanz und Wirtschaft reported.

Eckard Heidloff, the chairman of Wincor Nixdorf, told the Swiss bi-weekly he is quite happy with organic growth but would not rule out acquisitions to gain technologies, system integrators, and to round off the portfolio.

Wincor Nixdorf has a market cap of EUR 1.28bn.


Source Finanz und Wirtschaft

>>> What to look at today - 23/07/2014

US Market Closed Higher with Russel 2000 leading, Discretionary(+0.5%) Energy (+0.8%) & Healthcare (+0.8%), consumer staple lagged, volume were still light @ 600mil shares..VIX @ 12.27 -4.45%...After Hours ISRG +10.8%, BRCM +2.7%, MSFT +1.3%, XOOM -13.2%, XLNX -8.6%, AAPL -0.5% following earnings/guidance...- China's State Administration of Foreign Exchange (SAFE) official noted forex demand and supply was "basically balanced" and that he does not see strong
expectations for CNY depreciation. Overnight, PBoC reported June Net Forex Sales of CNY89.4B vs CNY38.7B prior - the first net sales since July 2013...BOJ Dep Gov Nakaso stated the central bank easing is having its intended
impact, noting domestic economy continues to grow above potential even as cabinet office cut its GDP projections overnight. Nakaso also said domestic demand is firm, while exports continue to move sideways and may only grow
modestly...Nikkei -0.08% Hang Seng +0.64% Shanghai +0.24%...

Eur$ 1.3466 S&P -0.01% EuroStoxx -0.31% FTSE -0.22% Dax -0.19% SMI -0.19%

Macro
- U.S. Air Traffic Errors Rose Almost 50% in Fy13: WSJ Link

Keep an eye on :
- ABBN VX : ABB 2Q Income From Operations $1.05b, Est. $1.07b
- AF FP : suspend Flight to Tel Aviv
- AKZA NA : Akzo Nobel Says Operating in Volatile Market
- ALO FP : Alstom 1Q Sales Misses Ests.; Says Can’t Give Current Yr Targets
- BES PL : Banco Espirito Santo Says Goldman Sachs Holds 2.27% Stake
- BLT LN : BHP Rises to Near Five Month High as 4Q Output Tops Ests.
- BMW GY : Brilliance (1114 HK) -3% --> -ve BMW
- BN FP : Danone Started Strategic Review, WSJ Says (Earlier)
- DAI GY : Daimler 2Q Profit Beats, Rev. In-Line; Outlook Confirmed
- DAAI GY : Daimler May Invest >EU3b If German Workers Concede: Handelsblatt
- DECB BB : Deceuninck 1H Ebitda Misses Ests. as Weak Lira Erodes Margin
- DBK GY : Deutsche Bank Criticized by New York Fed on Reporting: WSJ -- >-3% in NY compared to European Close
- EZJ LN : Easyjet Suspends All Flights to Tel Aviv for Next 24 Hours: Sky
- EFGN VX : EFG 1H IFRS Loss CHF6m, Hurt by Non-Recurring Legal Charges
- OTE1V FH : Weir Group could be interested by the company (€12/share vs 7.635 (+57%) after failing to tied uo with Metso
- Prada (19143 HK) +3.95% --> could help Luxury
- PRS SM : Prisa CEO Abril-Martorell Resigns; Co. to Increase Capital
- REP SM : Repsol Said to Explore Bid for Talisman Energy After YPF Payout
- RLIA SM : Realia 1H Net Loss EU18.5M Vs EU28M Loss a Yr Earlier
- RNO FP : Renault to Supply Fiat With Light Utility Vehicle
- RIEN SW : Rieter 1H Sales Rise 9%, Sees 2014 Ebit Increase
- SAP GY : SAP Gives Omnicom Global Communications and Advertizing Contract
- SEV FP : Suez Environnement Issued 8 Mln New Shares to 16,519 Employees
- SSABS SS : SSAB 2Q Profit Tops Est.; Sees Better Demand in North America
- STM FP : STMicroelectronics 2Q Sales, Gross Margin In Line
- SYNN VX : Syngenta Cuts Target for FCF Before Acquisition to ~$1.3b
- TEL NO : Telenor 2Q Sales, Ebitda Beat, EPS Misses; Keeps FY Forecast, Raises Ebitda Margin Forecast, Sees Lower Capex
- VIE FP : France’s Royal Plans Social Tariff for Water, Le Parisien Says
- VOD LN : Vodafone Shareholders Should Oppose Pay Policy, PIRC Says

>>> Brokers Upgrades & Downgrades

>>> Up
*AMICA RAISED TO HOLD VS SELL AT ING
*BILFINGER RAISED TO BUY VS HOLD AT BANKHAUS LAMPE
*DASSAULT SYSTEMES UPPED TO OUTPERFORM VS NEUTRAL: CREDIT SUISSE
*MONTE PASCHI RAISED TO HOLD VS SELL AT SOCGEN

>>> Down
*LUFTHANSA CUT TO NEUTRAL VS BUY AT NOMURA
*PUBLICIS CUT TO NEUTRAL VS BUY AT BOFAML
*SWATCH CUT TO NEUTRAL VS BUY AT NOMURA

>>> PT Change
*Barclays PT Cut, IB Pretax Ests. Reduced at RBC on Restatement

>>> Initiation
*B&M RATED NEW BUY AT GOLDMAN, PT 350P
*B&M RETAIL RATED NEW BUY AT JEFFERIES; PT 350P
*B&M RATED NEW OUTPERFORM AT CREDIT SUISSE, PT 330P

>>> Call
>> Stock
*LANXESS ADDED TO EUROPE 1 LIST AT BOFAML
*SONOVA ADDED, GN STORE NORD EXITS MORGAN STANLEY EU BEST IDEAS

>>> US After Hours

After Hours Summary: ISRG +10.8%, BRCM +2.7%, MSFT +1.3%, XOOM -13.2%, XLNX -8.6%, AAPL -0.5% following earnings/guidance

After Hours Gainers: Companies trading higher in after hours in reaction to earnings: ISRG +10.8%, VASC +7.1%, MANH +4.4%, RHI +3.9%, ZIXI +3.7%, HA +3.1%, BRCM +2.7%, UCFC +2.5%, MEET +1.7%, MSFT +1.3%, FTI +1.2%, AWRE +1.1%, TRMK +0.2%, HTS +0.1%

Companies trading higher in after hours in reaction to news: PBYI +201.4% (announced amendment to neratinib licensing agreement with Pfizer; co also announced positive top line results from Phase III PB272 trial in Adjuvant Breast Cancer (ExteNET Trial) - neratinib achieves statistically significant improvement in disease free survival), TLM +12.1% (hearing that Repsol (REPYY) is considering making a bid for the company), DARA +9.7% (higher following news from PBYI), BLDP +3.6% (to supply New Flyer Industries with next generation power module for U.S. fuel cell bus), HA +3.1% (to add new Airbus A330-800neo to fleet; airline's Order for A350XWB-800s cancelled), UPIP +2.4% (co has sued Microsoft for breach of contract and declaratory judgment)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings: XOOM -13.2%, XLNX -8.6%, IRBT -7.6%, UIS -7.3%, EXP -5%, JNPR -4.5%, LLTC -2.5%, EA -0.8%, AAPL -0.5%, TSS -0.2%, DFS -0.1%

Companies trading lower in after hours in reaction to news: LJPC -6.6% (announced proposed underwritten offering of common stock), FPI -3.9% (announced commecement of public offering of ~3.72 mln shares of common stock), NYLD -1.6% (launched public offering of 10.5 mln shares of its Class A common stock), EVRY -1.3% (provided update on credit agreement: entered into amendment to extend the co's forbearance agreement through July 29, 2014)

>>> Asian Update

Asian Market Update: AUD/USD hits 2-week high on hotter CPI; BHP iron ore output tops prior forecast

***Economic Data*** - (AU) AUSTRALIA Q2 CONSUMER PRICES (CPI) Q/Q: 0.5% V 0.5%E; Y/Y: 3.0% (9-quarter high) V 3.0%E; Trimmed Mean Q/Q: 0.8% v 0.6%e ; Y/Y: 2.9% (multi-year high) v 2.7%e - (AU) AUSTRALIA JUN SKILLED VACANCIES M/M: 1.6% (2nd consecutive increase) V 1.8% PRIOR

***Index Snapshot (as of 02:30 GMT)*** - Nikkei225 flat, S&P/ASX +0.9%, Kospi flat, Shanghai Composite +0.2%, Hang Seng +0.5%, Sept S&P500 flat at 1,974

***Commodities/Fixed Income/Currencies*** - Aug gold +0.1% at $1,307/oz, Sept crude oil -0.7% at $102.01/brl, Sept Copper flat at $3.21/lb - (US) API PETROLEUM INVENTORIES: CRUDE: -0.56M (4th consecutive draw) v -2.5Me, GASOLINE: +3.6M v +1Me, DISTILLATE: +2.5M v +2Me - GLD: SPDR Gold Trust ETF daily holdings rise 1.5 tonnes to 804.8 tonnes - SLV: iShares Silver Trust ETF daily holdings fall to 9,989 tonnes from 10,038 tonnes prior (lowest since Jan 17th) - (CN) China MoF sells 30-yr bonds at 4.76% - JGB: (JP) Japan's MoF sells ¥1.09T in 1.5% (1.5% prior) 20-year JGBs; Avg yield:1.409% v 1.459% prior; bid-to-cover: 3.77x v 2.71x prior - USD/CNY: (CN) PBoC sets yuan mid point at 6.1572 v 6.1544 prior setting (weakest Yuan setting since July 8th)

***Market Focal Points/Key Themes*** - Hotter than expected Australia Q2 CPI sent AUD/USD pair up some 50pips above $0.9430 - a 2-week high. Headline CPI of 3.0% was a 9-quarter high and at the very top of the RBA target range of 2-3%, while the trimmed mean hit a multi-year high of 2.9%. Medical/Hospital services component of healthcare spend saw the highest increase of 4.6% and dwelling purchases rose 1.6%, while more discretionary travel spending fell 3.8% and fuel expenses fell 2.7%. One analyst noted that while it may be too soon to start pricing in RBA rate hikes this year as anticipated by some of the more hawkish brokerage houses, expectations for rate cuts have now been fully extinguished.

- BHP Billiton is up nearly 2% in Sydney after posting an impressive Q4 production report. Iron ore output rose 19% y/y to 56.6MT in the quarter, with FY14 225MT topping 217MT prior forecast. Q4 copper production rose 2% y/y, while petroleum and metallurgical coal rose 9%. BHP also guided FY15 iron ore at 245MT, petroleum at 255MMBOE (vs 246MMBOE for FY14), copper at 1.8Mt (1.7Mt for FY14), and Metallurgical coal 47Mt (45Mt for FY14). BHP CEO said the mining giant expects to maintain strong momentum and remain on track to generate Group production growth of 16% over the two years to the end of the 2015 financial year.

- China's State Administration of Foreign Exchange (SAFE) official noted forex demand and supply was "basically balanced" and that he does not see strong expectations for CNY depreciation. Overnight, PBoC reported June Net Forex Sales of CNY89.4B vs CNY38.7B prior - the first net sales since July 2013.

- BOJ Dep Gov Nakaso stated the central bank easing is having its intended impact, noting domestic economy continues to grow above potential even as cabinet office cut its GDP projections overnight. Nakaso also said domestic demand is firm, while exports continue to move sideways and may only grow modestly. USD/JPY fell about 10pips below 101.40 after Nakaso comments in the absence of more concrete hints that the central bank is closer to considering a fresh round of monetary stimulus.

- Brazil saw another post-World Cup poll showing Pres Rousseff approval rating actually holding steady at 44%. Overall cabinet approval rating was 31%, but 38% said that they would vote for the incumbent in national elections, giving Rousseff a comfortable 16pt margin over opposition candidate Neves. Earlier in the day, Brazil govt cut its 2014 GDP growth forecast to 1.8% from 2.5%

- Ahead of tomorrow's RBNZ rate decision, NZIER Shadow Board sees a much closer case in favor of another 25bp rate hike than in the prior 3 instances - showing 55% support for an increase in the OCR, 33% support for no change and 12% for a rate cut. NZ Fin Min English talked down the Kiwi slightly in the Asia afternoon session, noting the exchange rate is 10-15% overvalued. NZD/USD rose about 20pips above 0.8680 after Australia CPI, but lost most of those gains on comments from English.

***Equities*** US markets: - PBYI: Announces Positive Top Line Results from Phase III PB272 Trial in Adjuvant Breast Cancer (ExteNET Trial); +203% afterhours - TLM: Repsol said to be considering bid for the company - financial press; +15.7% afterhours - ISRG: Reports Q1 $3.73 v 2.76e, R$512.2M v $499Me; +10.6% afterhours - BRCM: Reports Q2 $0.65 v $0.61e, R$2.04B v $2.05Be; +2.7% afterhours - MSFT: Reports Q4 $0.66 (adj) v $0.60e, R$23.4B v $23.1Be; Follow-up: CFO: On an adjusted basis, Q4 EPS was $0.66 v $0.64e comparable estimate - comments to press ahead of 17:30ET conf call; +1.4% afterhours - VMW: Reports Q2 $0.81 v $0.79e, R$1.46B v $1.45Be; Narrows FY14 guidance for R$5.96-6.08B v $6.03Be (prior $5.94-6.10B); Affirms FY14 non-gaap op margin about 31% - conf call; +0.5% afterhours

- EA: Reports Q1 $0.19 v -$0.04e, R$775M v $710Me; -0.5% afterhours - AAPL: Reports Q3 $1.28 v $1.22e, R$37.4B v $38.6Be; iPhone shipments 35.2M v 31.24M y/y (v 35.8Me), iPad shipments 13.3M v 14.62M y/y (v 14.4Me);-0.6% afterhours - JNPR: Reports Q2 $0.42 v $0.38e, R$1.23B v $1.22Be, guides Q3 $0.35-0.40 v $0.44e, R$1.15-1.20B v $1.26Be; -5.0% afterhours - IRBT: Reports Q2 $0.28 v $0.21e, R$139.8M v $143Me; -6.6% afterhours - UIS: Reports Q2 $0.11 v $0.40e, R$806M v $884Me; -7.3% afterhours - XLNX: Reports Q1 $0.62 v $0.61e, R$613M v $634Me; -9.1% afterhours

Notable movers by sector: - Consumer Discretionary: Qantas Airways QAN.AU +2.2% (possible plans to split operations, attract foreign investors); McDonald's Holdings Co Japan 2702.JP -1.4%, FamilyMart 8028.JP -1.1% (concerns over China meat scandal spreading to Japan) - Consumer staples: China Modern Dairy 1117.HK +2.7% (positive profit alert); Shanxi Xinghuacun Fen Wine Factory 600809.CN -1.0% (H1 guidance) - Financials: Challenger Financial Services Group CGF.AU +2.1% (shareholder raises stake) - Materials: Zhejiang Great Southeast 002263.CN +10.1% (announces acquisition); China Polymetallic Mining 2133.HK -2.3% (profit warning); BHP Billiton Ltd +1.7% (Q4 production results); Sims Metal Management SGM.AU +5.1% (issues strategic plan); MACA Ltd MLD.AU +4.6% (FY14 forecast) - Industrials: Gome Electrical Appliances 493.HK +3.1% (positive profit alert); Nippon Shokubai 4114.JP +1.6% (press speculation on Q1 results)

>>> Microsoft notes from conference call

Microsoft notes from conference call: Co provides Q1 rev guidance that calcs to $21.2-22.3 bln vs $22.92 bln Capital IQ Consensus Estimate (44.83 -0.01)

Devices and consumer
In licensing revs expected between $4.1-4.2 bln
In computing and gaming hardware revs expected between $1.7-2.0 bln
In phone hardware revs are expected to be $1.9-2.3
Other revs expected between $1.8-1.9 bln
Commercial
Combined revs between the companies two commercial segments to be $12.0-12.2 bln; within this other revs accounting for $2.2-2.3 bln
Corporate
$300 mln of negative impact
Expect COGS to be between $7.5-7.9 bln
Expect OpEx excluding integration restructuring to be $8.5-$8.7 bln;
Expect CapEx to increase sequentially (vs $1.33 bln in Q4)
Expect full year tax rate between 21-23%
Co sees FY15 operating expenses of $34.2-34.6 bln

WSJ : Google Considers Buying Spotify But Finds the Price Too High

Google Considers Buying Spotify But Finds the Price Too High
Talks Break Down For Number of Reasons, Including Valuation and Luke-Warm Larry Page

Google Inc. GOOGL +0.86% tried to buy music-streaming service Spotify AB late last year, according to a person familiar with the matter.

Talks broke down for a number of reasons, including the high price Spotify was asking, as well as Google Chief Executive Larry Page's lack of enthusiasm for subscription entertainment services.

Google executive Susan Wojcicki, who took the top job at YouTube in February, was a primary advocate for buying Spotify, according to this person.

Spotify and Google declined to comment.

Google disclosed in a December letter to the Securities and Exchange Commission that it had "pursued but discontinued a potential buyout of a foreign company, with a valuation estimated in the range of $4 [billion] to $5 billion."

Spotify last raised equity financing at a valuation of $4 billion but was looking to be sold at a price well above $10 billion, says the person familiar with the talks.

Tech blog Re/code reported Google's interest in acquiring Spotify on Monday.

In May, Apple Inc. AAPL +0.83% agreed to buy Spotify competitor Beats Music LLC, along with its sister company, headphone maker Beats Electronics LLC, for a total of $3 billion. Apple is paying only $500 million of that sum for the seven-month-old subscription music service, according to people familiar with the matter, though they cautioned the price breakdown was largely an accounting issue for Apple.

Spotify has more than 10 million paying subscribers world-wide and another 30 million users of its free service. Beats Music has several hundred thousand paying subscribers.

Music has been a key pillar of Apple's mobile ecosystem since it introduced the iPod and iTunes in 2001. Google is trying to catch up with a number of initiatives, including its own subscription service: Google Play Music All Access. Google also said earlier this month that it had bought streaming service Songza Inc. for an undisclosed amount.

NY POst : Fox’s Time Warner bid could hit $105 a share

Getting to “yes” doesn’t have to be difficult for a merger agreement between Time Warner and 21st Century Fox.
It might even be easy, according to Moody’s Investors Service, which in a report Monday laid out a scenario in which Fox could offer $105 per share for Time Warner without jeopardizing its credit rating.
That’s $20 more per share than Time Warner turned down from Rupert Murdoch’s company earlier this month.
Moody’s scenario also boosts the deal’s cash component to $35.34 billion, up from $28.88 billion in Fox’s initial proposal.
The beauty of Moody’s analysis, however, is Fox’s not having to break the bank to reel in Time Warner.
In fact, the credit rating agency projected a Fox-Time Warner combo could return to Fox’s coveted leverage ratio — 3.0 times debt to Ebitda — inside of 18 months.
Fox would initially commit the $5 billion to $7 billion in annual free cash flow the merged entity stands to generate to debt reduction.
That’s if Fox also sells some $14 billion in assets, Moody’s added, which just happens to be the price that Fox’s Italian and German pay-TV assets — 100 percent-owned Sky Italia and 57 percent-owned Sky Deutschland — are expected to fetch.
Speculation already has Fox shopping the two units to British Sky Broadcasting Group.
“Based on its valuable and diversified portfolio of assets amassed over the years,” Moody’s concluded, “we believe Fox has ample flexibility and strategic alternatives to finance the deal while maintaining a strong balance sheet.”
The question would then be the receptivity of Time Warner to a sweetened offer.
A change in its bylaws Monday, which quashed the ability of shareholders to call special meetings, indicates if Time Warner isn’t all that receptive, it will at least be thorough.
Time Warner CEO Jeff Bewkes has a number of reasons — $80 million worth — to consider the combo.
That’s how much Bloomberg estimated he would take home should there be a takeover.

FT : US warned of up to 25 groups eyeing foreign switch to cut tax

US warned of up to 25 groups eyeing foreign switch to cut tax
By Barney Jopson in Washington and Ed Hammond in New YorkAuthor alerts

WASHINGTON, DC - JANUARY 06: U.S. Sen. Ron Wyden (D-OR) speaks to members of the press as he is on his way for a vote January 6, 2014 on Capitol Hill in Washington, DC. Janet Yellen was confirmed by the Senate with a vote of 56 - 26 to become the first woman to head the Federal Reserve Board. (Photo by Alex Wong/Getty Images)©Getty

Up to 25 more US companies are considering relocating overseas to cut their tax bills this year, a top Democratic lawmaker has warned, as he assailed investment bankers for encouraging them.
The prediction came as concern mounts in Washington over a rise in merger deals, known as inversions, which US multinationals use to move their headquarters to countries with lower corporate tax rates.

They were thrust into the spotlight by Pfizer’s unsuccessful $116bn attempt to buy UK rival AstraZeneca. Angst is now rising over Walgreens, a drugstore chain that could use its agreed takeover of Switzerland-based Alliance Boots to redomicile.
Ron Wyden, the chairman of the Senate finance committee, intensified his attacks on inversions on Tuesday. “The inversion virus now seems to be multiplying every few days,” he said. “How many more infections can America’s economic body endure?”
He complained that even as they hurt US employment and shrank the country’s tax base, the deals were being promoted by “fast-buck artists” such as investment bankers, private equity groups, lawyers and accountants.
“With the investment bankers in that inversion feeding frenzy, there may be 25 more inversions during [this year],” he told a hearing of the Senate finance committee.
In inversion deals in the past month, Medtronic announced the $42.9bn acquisition of Dublin-based Covidien and AbbVie agreed to acquire the UK’s Shire for $54bn.
Speaking for the Obama administration, Robert Stack, a senior official at the US Treasury department, told the hearing: “We are aware of many more inversions in the works right now”.
Companies and their advisers on both sides of the Atlantic remain undaunted by the political onslaught in Washington, calculating that the chances of Congress passing bipartisan legislation to curb inversions are slim.
Last week, Jack Lew, the Treasury secretary, urged lawmakers to pass a White House proposal – backed by Mr Wyden – to stamp out inversions, which would lift the foreign ownership threshold for such deals from 20 per cent to 50 per cent.
Although senior Republicans have also lambasted inversions, the two parties cannot agree on how to tackle the problem.
Senator Orrin Hatch, the top Republican on the finance committee, criticised proposed countermeasures from the White House and others as being mainly “punitive and retroactive”. He said that rather than “incentivising American companies to remain in the US, these bills would build walls around US corporations in order to keep them from inverting.”

He added that they could have the unintended consequence of encouraging “reverse acquisition” inversions by making US companies more attractive targets for foreign suitors.
Chris Krueger, an independent analyst at Guggenheim Securities, said the probability of Congress taking action on inversions this year was less than 10 per cent.
Lawmakers will go on a five-week recess next week and when they return minds will be focused on November elections.
In a statement echoed by many Republicans, the Business Roundtable, which represents blue-chip companies, said last week that inversions were symptoms of the broader failures of a US tax system that hampers US competitiveness.
It said “piecemeal” bills to curb the deals were not the answer and repeated its longstanding calls for comprehensive tax reform.
Mr Wyden said he had invited the chief executives of several companies doing inversions to testify, but they had not accepted.