From: LAURENT CHEKROUN () At: Jul 8 2014 23:51:48
To: LAURENT CHEKROUN ()
Subject: Fwd:WSJ : Belgium Calls on BNP to Share Lessons Learned from $9 Billion Fine
Subject: Fwd:WSJ : Belgium Calls on BNP to Share Lessons Learned from $9 Billion Fine
Belgium Calls on BNP to Share Lessons Learned from $9 Billion FineFinance Minister Asks Bank CEO to Explain His PlansBRUSSELS— BNP Paribas SA BNP.FR -2.13% 's largest single shareholder, the Belgian government, has summoned the French bank's chief executive to seek an explanation about the U.S. sanctions case and its $9 billion penalties.Belgium's Finance Minister Koen Geens expressed concern about the gravity of the charges against BNP Paribas and has asked the bank's CEO, Jean-Laurent Bonnafé, to come and meet him soon in Brussels, according to a statement issued by the ministry on Tuesday.Mr. Geens "wishes to get a precise understanding of what lessons management and all the responsible parties will learn from what has happened, including matters regarding shareholder transparency," the ministry said.BNP Paribas, France's largest listed bank by assets, last month pleaded guilty to violating U.S. sanctions against Sudan, Iran and Cuba, as part of an unprecedented settlement that included a year-long ban on the bank's ability to conduct certain U.S. dollar transactions.A spokeswoman for BNP Paribas declined to comment.The Belgian government's request highlights the pressure on the French bank and its management to explain how it plans to turn the page on what Mr. Bonnafé himself has described as a "difficult situation." The settlement with U.S. authorities has marked an abrupt fall from grace for a bank, which until now had largely dodged the scandals that gave the industry a bad name, such as the U.S. mortgage crisis or the Libor interest-rate rigging.The country ended up with a stake in the French lender in 2009 when BNP Paribas bought Belgian bank Fortis, 532843.BY +1.38% which had been bailed out by the Belgian government.The Belgian government has said it wasn't intent on holding on to its 10.3% interest in the bank. "However, a decision to sell this type of holding needs to be taken in a calm atmosphere by a government with a full mandate," said Mr. Geens.Belgium's current six-party coalition government is in a caretaker role; preliminary talks to form a new government have been continuing since elections in late May.In the settlement on June 30, U.S. officials laid out in stark terms a sophisticated and long-running scheme BNP Paribas relied on to disguise billions of dollars in financial transactions in violation of American sanctions—despite warnings by some within the firm about the legality, and morality, of the transactions.In Sudan, the bank acknowledged using regional banks overseas to process more than $20 billion in financial transactions linked to local companies and government agencies at a time when the nation was engaged in what the U.S. and others call genocide.Mr. Bonnafé expressed "deep regrets" for the French bank's misconduct shortly after U.S. authorities announced the settlement. "The failures that have come to light in the course of this investigation run contrary to the principles on which BNP Paribas has always sought to operate," Mr. Bonnafé said.The bank said it would set up a special unit in New York to ensure BNP Paribas complies globally with U.S. sanctions. Its New York branch will be responsible for processing and controlling all of the bank's dollar flows in the future.
BSkyB Could Potentially Announce Sky Europe Plans at 4Q: UBS
2014-07-09 06:36:38.802 GMT
By Blanche Gatt
July 9 (Bloomberg) -- BSkyB reports 4Q on July 25, could
unveil plans for Sky Europe then, UBS says in note.
* UBS says has been expecting “imminent” announcement since
Italian Serie A rights auction ended
* Mkt may have underestimated upside from a deal
* Sees full-year rev. up 5%; sees adj. oper. profit down
6.5% on rise in Premier League costs, Adsmart, NowTV,
Sky Store investments
* Higher-than-expected price rise for coming yr takes
effect in September
* Could boost consensus adj. oper. profit ests for 2015/16
by 4% GBP60m per year
* Reiterates buy, PT 1,100p
* NOTE July 3: BSkyB Sports Price Rise Pleases Investors,
Clients Less: Nomura
* NOTE June 30: BSkyB May See Fox Talks Progress After Serie A
Decision: Nomura
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jludden@bloomberg.net
2014-07-09 06:36:38.802 GMT
By Blanche Gatt
July 9 (Bloomberg) -- BSkyB reports 4Q on July 25, could
unveil plans for Sky Europe then, UBS says in note.
* UBS says has been expecting “imminent” announcement since
Italian Serie A rights auction ended
* Mkt may have underestimated upside from a deal
* Sees full-year rev. up 5%; sees adj. oper. profit down
6.5% on rise in Premier League costs, Adsmart, NowTV,
Sky Store investments
* Higher-than-expected price rise for coming yr takes
effect in September
* Could boost consensus adj. oper. profit ests for 2015/16
by 4% GBP60m per year
* Reiterates buy, PT 1,100p
* NOTE July 3: BSkyB Sports Price Rise Pleases Investors,
Clients Less: Nomura
* NOTE June 30: BSkyB May See Fox Talks Progress After Serie A
Decision: Nomura
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Shire shareholders want talks with AbbVie
Shire shareholders are pressing the listed Anglo-Irish pharmaceuticals company to enter takeover talks with AbbVie, The Daily Telegraph reported. The report quoted one top 10 Shire shareholder who said the time is now right to begin talks. Another top 20 shareholder said Shire should “engage” with listed Chicago, Illinois-based AbbVvie, the item added.
AbbVie yesterday, 8 July submitted an increased offer valuing Shire at GBP 51.15 (EUR 64.36) per share, or GBP 30.1bn. The offer is 11% higher than AbbVie’s previous offer, the item noted. Shire has rebuffed three previous approaches from AbbVie and has refused to enter talks.
Shareholders emphasized that although they believe Shire should enter talks with AbbVie, the US-based company would need to improve its offer further, the article added. The item noted that, unlike with previous offers from AbbVie, the Shire board did not immediately dismiss the latest offer.
Shire issued a statement indicating that it would hold a board meeting to review AbbVie’s latest offer.
The article went on to quote a Berenberg Bank analyst who thought Shire investors were looking for an offer nearer to GBP 55 per share, and doubted whether Shire would enter talks based on AbbVie’s latest offer.
A Panmure Gordon analyst cited by the report said the revised bid was aimed at putting pressure on the Shire board to enter talks in order to secure a recommendation. The analyst believed that Shire’s board would recommend an offer at a price higher than GBP 51.15, but no more than GBP 55.
It is understood that some shareholders are disappointed that AbbVie increased the proportion of shares to cash in its offer, the article added.
A report in The Times noted that AbbVie encouraged investors to consider the revised bid, and said it wants to quickly enter talks with Shire.
The newspaper cited a Cenkos analyst who said AbbVie had put itself at a tactical disadvantage by addressing shareholders directly. The analyst went on to say that Shire’s target of doubling its revenues by 2020 is achievable, although aggressive, and that the growth target would strengthen its defence against the AbbVie offer. The analyst added that AbbVie may need to launch a hostile bid, and that the US group would need to increase its offer.
The Financial Times’ Lex column noted that Shire’s share price fell slightly to around GBP 45.50 following news of AbbVie’s revised bid. The article commented that the market view would appear to be that the current offer will not suffice and that AbbVie would be reluctant to offer more.
The Lex column hypothesized that if AbbVie increased its offer by 10%, to GBP 25 in cash plus 0.93 AbbVie shares per Shire share – worth slightly more than GBP 56 – the enlarged group would, if the bid was accepted, would have net debt of approximately USD 31bn (EUR 22.81bn).
Based on US forecasts for 2015, the merged group would have earnings before interest, tax, depreciation and amortization (EBITDA) of USD 11.6bn. A successful bid at about GBP 56 would increase the ratio of the merged group’s net debt to ebitda to 2.7, thereby threatening the investment grade rating on its debt, which AbbVie is keen to maintain, according to the report.
The Lex column went on to note estimates by analysts at Barclays that the proposed deal would yield savings of about USD 300m, or about 10% of Shire’s operating expenses. Those projected savings would help to minimize the debt ratio, the article added. The report concluded by arguing that AbbVie might not increase its offer by much.
A report in the main section of the Financial Times noted that AbbVie chief executive Richard Gonzalez would not rule out increasing the company’s offer, or the prospect of launching a hostile offer if the Shire board refuses to enter talks. Gonzalez also said he believes that there is widespread support among Shire shareholders for a takeover, following meetings with investors in New York and London.
The Daily Telegraph's market report section said investors were concerned that AbbVie has yet to make a firm bid, and that AbbVie had announced the increase to its offer without informing Shire's board first.
Shire's share price closed 121p down at 4530p in London yesterday, valuing the company at GBP 26.69bn.
Source Daily Telegraph, The Times (London), Financial Times
--> Could see some speculation on European names as Amercia Movil already started to repositionned...VOD, KPN,...Bouygues Telecom...could be names to watch
América Móvil announced today (8 July) its Board of Directors, at its ordinary meeting held today, after having analyzed several alternatives and recommendations presented by the Strategic Committee, resolved to authorize measures to reduce its national market share in the Mexican telecommunications market under 50% in order to cease being a “preponderant economic agent”, under the terms of the Constitution of the United Mexican States and its implementing legislation.
The Board of Directors of América Móvil decided upon the sale of certain assets to a new and solid carrier independent from América Móvil, with experience in the telecommunications sector, with sound economic and technical resources, being a real option to participate in this capital intensive sector, to overcome the obstacle of the insufficient investment made by our Mexican competitors. The decision related to the sale of assets is conditioned upon Teléfonos de México, S.A.B. de C.V. (“Telmex”) and Radiomóvil Dipsa, S.A. de C.V. (“Telcel”) ceasing to be “preponderant economic agents” and subject to asymmetric regulations, and being able to access the provision of convergent services. Also, the assets must be sold at market conditions at their commercial value.
In addition, all cellular cites (base stations), including towers and related passive infrastructure, will be separated from Telcel for their corresponding operation and commercialization to all interested parties.
The implementation of the approved measures is subject to certain corporate, regulatory and governmental authorizations, as well as the approval, as the case may be, of the board of directors and/or shareholders’ meetings of América Móvil and/or subsidiaries. América Móvil will pay special attention to the relationship with its clients, distributors, investors and personnel, to whom the development of América Móvil and subsidiaries is attributed.
Telmex ratifies and strengthens the commercial agreement with Dish México, S. de R.L. de C.V. (“Dish México”), consisting of billing and collection services, distribution and equipment leases. The services provided to Dish México have been – and will continue to be – available to telecommunications carriers, including those providing cable and/or satellite television services.
Likewise, Telmex waives its rights arising from the option agreement related to the purchase of 51% of the shares representing the capital stock of Dish Mexico.
The Board of Directors commented on the transformation of the telecommunications sector during these 23 years and the role played by Telmex and Telcel. América Móvil’s investments in Mexico and Latin America have been instrumental in the expansion of its telecommunications network and services, and have resulted in América Móvil having the most advanced technology. These investments have resulted in important and continuous
productivity increases which have been passed on to our clients.
As such, in Mexico, prices for mobile services, national long-distance, and Internet services per kilobit, have decreased more than 90% since the privatization of Telmex, and are currently among the lowest in Latin America and OECD member countries.
It was also highlighted how, in mobile services, Telcel began operations after Iusacell and certain other concessionaires currently known as Movistar, which then had 100% market share in the mobile market, and for years continued to hold a majority participation in such market. During the nineties, cable operators were the only ones who could provide broadband Internet services, and by 2002, cable operators still had twice as much market share in the broadband Internet market than Telmex.
Finally, the Board commented upon the growth of América Móvil, which operates in 26 countries and whose wireless costumer base increased from 35,000 to 292m, an 8,300x increase, and an increase from 5.3m revenue generating units (“RGUs”) to over 365m, as a result of the preference of our clients.
US Market closed lower, following European weakness on cautious European growth data, Al top tech growth names were under pressure (FB, AAPL, TWTR, LNKD), utilities were up again today outperforming, consumer staples (-0.2%), energy (-0.2%), and materials (-0.3%) settled ahead of the broader market, but could not climb into the green...Volumes were still light @ 670mil shares...VIX @ 11,98 +5,74%...AA Reported better numbers, trading +1,6% after Hours...International Paper Board approves $1.5B buyback program (7% of market cap)...Citi Reportedly nearing deal to resolve mortgage probe with US investigators; expected to pay over $4B...Asian Markets continue to follow US & Europe onOvervaluation concerns, Chinese Inflation below expectation(2.3% vs 2.5%) & Well short from Gov targets (3.5%),australia consumer confidence continue to recover but remained weaker than average...Nikkei -0.20% Hang Seng -1.29% Shanghai -0.49%
Eur$ 1.3619 S&P +0.01% EuroStoxx +0.19% FTSE +0.02% DAX+0.12% SMI +0.06%
Macro
- Big Question for Brazil Mkts Post-Cup Concerns Protests: SocGen {NSN N8FD976S972L <go>}
- Why UBS Says Brazil’s 7-1 Trouncing Is Bearish for Stock Market {NSN N8FB216S972N <go>}
- Templeton’s Mobius Sees China Heading in ‘Right Direction’: FUW
- Consumer Credit in U.S. Jumped in May Amid a Pickup in Loans to Buy Autos
- Liberum Says Funds Managers See Pickup in M&A, Lists Targets {NSN N8FJOZ6JIJUR <go>} (Lists most likely targets: Asos, AstraZeneca, Balfour Beatty, Bovis Homes, Costain, CSR, HaloSource, Hyder, ITV, Johnson Matthey, Jupiter Fund Management, Mothercare, New Britain Palm Oil, Spectris, Syngenta, Tarsus, UBM)
Keep an eye on :
- ADS GY : Adidas Said to Offer Manchester United More Than $100m/Year Deal
- AIR FP : U.K. SFO Quizzes 2 Airbus Staff on Alleged Saudi Corruption: FT
- AIR FP : Airbus Sees China Market to Pull Even With U.S.: China Daily
- AREVA FP : Areva, Niger Continue Discussions on Two Uranium Mines: AFP Link
- BARC LN : Barclays Said to Plan $1.4 Billion Sale of Natural Resource Unit
- BATS LN : BAT rumoured to be closing in on Reynolds American buyout at USD 75 per share or more - Daily Mail
- BMW GY : Brilliance china (1114 HK) -2.69$
- COMB BB : Bois Sauvage Issues 46,504 Shares on Warrant Exercise at EU239
- CBK GY : Depfa, Commerzbank Said to Sell Detroit Bonds at 60 Cents: WSJ
- DAI GY : MV Agusta considers IPO or sale of minority stake to Daimler -Il Sole 24 Ore
- FER SM : Ferrovial Emisiones Fixes Price for EU300 Mln Bonds Due 2024
- GFS LN : G4S Unit, Geo May Get Boost Via Obama’s Immigration Request: BI
- IT IM : Italcementi Ready to Grow if Opportunity Arises: Corriere
- NOVN VX : Novartis Former Exec Says Fired For Whistle-Blowing: WSJ Link
- NUM FP : SFR Told by Regulator to Revise 4G Advertising, Echos Says
- PUB FP : Global Advertising Spend to Double Pace in 2014, EMarketer Says
- SAN SM : Varde, Blackstone, Canyon Buy Santander HQ Debt, Expansion Says
- SDRL NO : Seadrill Limited Cancels $1b Conv Bond Issuance
- SHP LN : AbbVie Says It Hasn't Gotten Written Support for Shire Offer
- SW FP : Sodexo 9M Organic Rev. Growth Misses; 2014 Organic Forecast Cut
>>> Up
*AIR FRANCE-KLM RAISED TO NEUTRAL VS SELL AT UBS
*ASELSAN RAISED TO BUY VS NEUTRAL AT BOFAML
*AZIMUT RAISED TO BUY VS HOLD AT DEUTSCHE BANK
*BP RAISED TO EQUALWEIGHT VS UNDERWEIGHT AT BARCLAYS
*DEUTSCHE BANK RAISED TO OVERWEIGHT AT JPMORGAN
*EIFFAGE RAISED TO BUY VS NEUTRAL AT GOLDMAN
*ENI RAISED TO BUY VS HOLD AT DEUTSCHE BANK
*GERRY WEBER RAISED TO BUY VS HOLD AT BERENBERG
*RENTOKIL RAISED TO OUTPERFORM VS NEUTRAL AT CREDIT SUISSE
*SARAS RAISED TO HOLD VS SELL AT SOCGEN
*SHELL RAISED TO BUY VS HOLD AT DEUTSCHE BANK
*THALES RAISED TO OVERWEIGHT VS NEUTRAL AT JPMORGAN
>>> Down
*AUTOLIV CUT TO HOLD FROM BUY AT NORDEA; PT SEK785
*BNP PARIBAS CUT TO NEUTRAL VS OVERWEIGHT AT JPMORGAN
*BP CUT TO HOLD VS BUY AT DEUTSCHE BANK
*CONNECT GROUP CUT TO NEUTRAL VS OVERWEIGHT AT JPMORGAN
*HEIDELBERGCEMENT CUT TO NEUTRAL VS BUY AT GOLDMAN
*NOVATEK CUT TO HOLD VS BUY AT RENAISSANCE
*NOVATEK CUT TO HOLD FROM BUY AT RENCAP, PT $140/GDR
*PROVIDENT FINANCIAL CUT TO HOLD VS BUY AT BERENBERG
*STRABAG CUT TO SELL VS NEUTRAL AT GOLDMAN
*TOTAL CUT TO HOLD VS BUY AT SOCGEN
*UNILEVER CUT TO REDUCE VS NEUTRAL AT NOMURA
>>> PT Change
*Jeronimo Martins PT Cut to EU14.8 vs EU16 at Raymond James
*SNAM PT RAISED 11% TO EU4.9 AT BARCLAYS; KEPT AT OVERWEIGHT
>>> Initiation
*OCADO REINSTATED AT BUY AT BOFAML; PT 540P
*OPHIR ENERGY RATED NEW BUY AT CITI; PT 280P
*PEUGEOT RESUMED AT EQUALWEIGHT AT MORGAN STANLEY; PT EU9.5
>>> Call
>> Stock
*ERICSSON REMOVED FROM EUROPEAN ANALYST FOCUS LIST AT JPMORGAN
*MONITISE REMOVED FROM CONVICTION BUY AT GOLDMAN; STILL BUY
ONE 07/08 22:26 Seadrill Limited: SDRL - Seadrill cancels contemplated convertible bond issuance and voluntary incentive payment offer
BN 07/08 22:26 *SEADRILL LIMITED CANCELS $1B CONV BOND ISSUANCE
BN 07/08 22:26 *SEADRILL WILL REFUSE TO ACCEPT ANY ACCEPTANCE FORMS
BN 07/08 22:26 *SEADRILL CANCELS VOLUNTARY INCENTIVE PAYMENT OFFER
BN 07/08 22:26 *SEADRILL CANCELS CONTEMPLATED CONV BOND ISSUANCE & VOLUNTARY
BN 07/08 22:26 *SEADRILL LIMITED: SDRL - SEADRILL CANCELS CONTEMPLATED CONV
BN 07/08 22:26 *SEADRILL LIMITED CANCELS $1B CONV BOND ISSUANCE
BN 07/08 22:26 *SEADRILL WILL REFUSE TO ACCEPT ANY ACCEPTANCE FORMS
BN 07/08 22:26 *SEADRILL CANCELS VOLUNTARY INCENTIVE PAYMENT OFFER
BN 07/08 22:26 *SEADRILL CANCELS CONTEMPLATED CONV BOND ISSUANCE & VOLUNTARY
BN 07/08 22:26 *SEADRILL LIMITED: SDRL - SEADRILL CANCELS CONTEMPLATED CONV
Seadrill Limited Cancels $1b Conv Bond Issuance
2014-07-08 22:29:53.137 GMT
By Andrea Snyder
July 8 (Bloomberg) -- “Although the order book was
covered, the adverse price movement led to an unattractive
conversion price for the issue,” co. says.
* Seadrill to refuse to accept acceptance forms delivered in
connection w/ voluntary incentive payment offer to convert
existing 3.375% $650m Seadrill bonds due 2017
* Seadrill to have cash balance of ~$1.5b by end of July
* NOTE: Earlier, Seadrill to Issue $1b 2019 Convertible Bond
{NSN N8DQTX6TTDS8 <go>}
Link to Statement:{NSN N8EZNZ3PWT1C <GO>}
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2014-07-08 22:29:53.137 GMT
By Andrea Snyder
July 8 (Bloomberg) -- “Although the order book was
covered, the adverse price movement led to an unattractive
conversion price for the issue,” co. says.
* Seadrill to refuse to accept acceptance forms delivered in
connection w/ voluntary incentive payment offer to convert
existing 3.375% $650m Seadrill bonds due 2017
* Seadrill to have cash balance of ~$1.5b by end of July
* NOTE: Earlier, Seadrill to Issue $1b 2019 Convertible Bond
{NSN N8DQTX6TTDS8 <go>}
Link to Statement:{NSN N8EZNZ3PWT1C <GO>}
Link to Company News:{SDRL NO <Equity> CN <GO>}
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Andrea Snyder at +1-202-624-1831 or
asnyder5@bloomberg.net
Gotham City Research Unmasks Gowex but Stays in Shadows
Short Seller's Founder Says It Spent Eight Months Researching Spanish Tech Firm
Like the superhero that serves as its inspiration, Gotham City Research LLC cultivates an air of mystery.
But the self-styled fraud fighter, whose research brought down a Spanish technology company this month, is part of a growing cadre of such shadowy crusaders.
Gotham is among a handful of short-selling firms that has sprung up in recent years, using the Internet to amplify their criticisms of targeted companies.
When their campaigns are successful, they can force companies to play defense and cause stock prices to fall. The short-selling firms typically profit from the drop in share prices.
But some of the firms also deliberately operate in the shadows, raising questions about their motives and tactics.
Some of the firms borrow heavily from the playbook popularized by Carson Block's Muddy Waters LLC. Mr. Block, an American who previously worked as a lawyer in Shanghai, first came to wide notice in 2011 when he took on Chinese timber company Sino-Forest Corp., against which Canadian authorities subsequently filed fraud allegations. Sino-Forest has gone through a court-ordered restructuring and now is a private entity.
Mr. Block declined to comment through a spokesman.
"These guys have established quite a lot of credibility," said Alexander Ljungqvist, a professor of finance and entrepreneurship at New York University's Stern School of Business who has written about short sellers. "Investors clearly are taking them seriously," he said.
Still, outside the short-seller community and investment websites, few had heard of Gotham before this month. Last Tuesday, the firm released a 93-page report calling for Let's Gowex SA GOW.MC -26.05% shares stock to go to zero, alleging that more than 90% of its revenues were "suspect."
Within days, Gowex Chairman and Chief Executive Genaro Garcia had resigned and acknowledged falsifying accounts. Gowex, which provides Internet hot spots in cities around the world, has said it might file for bankruptcy protection. The company had a market capitalization of €1.4 billion ($1.9 billion) as recently as a week ago.
Gotham largely declined to step into the limelight this week. The company was founded by Daniel Yu, a Massachusetts Institute of Technology graduate and former hedge-fund analyst, according to people who know him.
In an email, Mr. Yu declined to disclose the firm's size, how it makes money or provide details about himself. One of the few areas on which he was willing to elaborate was Gotham's history, saying the firm got its start when he and some others lost money investing in companies that were deceitful or committed fraud.
"We were victims of these corporate fraudsters. We believed this isn't right, and that the world needs someone to expose these crooks," Mr. Yu wrote. "And so, just as Batman catches criminals (and then submits them to authorities) using little more than his wit and some nice gadgets, Gotham City Research was born."
Mr. Yu wrote that Gotham had spent eight months working on Gowex. He wouldn't say how much Gotham had made off its call, saying it was "dwarfed" by Mr. Garcia's "cumulative profits earned by defrauding [Gowex's] investors."
"Daniel's achievement here wasn't just identifying fraud, it was the meticulous documentation to the point where Gowex had no chance" of recovering, said hedge-fund manager John Hempton, of Australian firm Bronte Capital, who is friendly with Mr. Yu. "That's no small achievement."
Mr. Ljungqvist and some short sellers say the number of such firms seems to have increased in the past few years, but that it is hard to track their numbers.
Other firms active in this area include Prescience Point LLC, Glaucus Research Group California LLC and Gravity Research. Prescience and Gravity didn't reply to requests for comment.
Glaucus, founded in 2011, prides itself on its transparency, said Soren Aandahl, the firm's director of research. He said Glaucus's research reports disclose how the firm is positioned. "You don't want people to discuss whether you're flip-flopping behind the scenes or to question your motives," he said.
Still, Mr. Aandahl declined to elaborate on other arrangements Newport Beach, Calif.-based Glaucus might have for profiting from its research, saying the focus should rest on the merits of that research.
He also said short-sellers shouldn't be held to higher disclosure standards than other investors.
Companies are under increasing pressure from short sellers, though the exact contribution of firms like Gotham—as opposed to hedge funds that bet against companies, for example—is unclear. This year through July 8, there have been 83 campaigns against 70 companies, according to Activist Shorts Research, a subscription database expected to launch later this month. That compares with 60 campaigns against 49 companies a year ago.
Activist Shorts Research includes as short sellers individuals it has determined reliably influence stock prices, but it doesn't break out campaigns by type of short seller.
The firms are controversial. Supporters say they democratize research, providing a needed counterweight to the bullishness of Wall Street analysts and ferreting out malfeasance. Critics say the firms aren't always accurate, operate with little transparency, making it difficult to engage with them, and cost companies money that could otherwise be returned to shareholders or invested.
There is also the concern that some of these shops share their research with a favored few before publication.
One winner from Gowex's collapse: Valiant Capital Management LP, a San Francisco-based hedge fund founded by Christopher Hansen. Per European Union rules requiring investors to reveal short positions above a certain threshold, Valiant disclosed on Feb. 3 it was short Gowex shares.
Ruby Sekhon, Valiant's general counsel, said Tuesday that Valiant wasn't a client of Gotham's and that Valiant long ago placed a short bet against Gowex. Based off its last public position, Valiant has a roughly $24 million profit on its Gowex short.
Write to Juliet Chung at juliet.chung@wsj.com
BN 07/09 02:17 Why UBS Says Brazil’s 7-1 Trouncing Is Bearish for Stock Market
Why UBS Says Brazil’s 7-1 Trouncing Is Bearish for Stock Market
2014-07-09 02:32:25.511 GMT
By Ye Xie and Jenna M. Dagenhart
July 9 (Bloomberg) -- Conventional wisdom was that a Brazil
loss at home in World Cup would be positive for its financial
markets by souring the national mood and prompting voters to
oust Dilma Rousseff.
* Yesterday’s 7-1 loss to Germany was so crushing that it
upends that theory, according to Geoffrey Dennis, the head
of emerging-market strategy at UBS, who’s been covering
Brazil since the early 1990s
* The defeat will hurt Rousseff’s chances at re-election in
October, but the lopsided outcome could deal a blow to
investor and consumer confidence in a country that obsesses
about its national pastime, he said in interview
* “It is such a humiliating defeat that you wonder whether it
will have a negative impact on Brazilians’ psyche,” Dennis
said. “It’s going to confirm to the people that ‘Look, our
economy is struggling, we cannot get any growth, now we
don’t even have a decent football team either.’”
* Rousseff wrote on her Twitter account that she was saddened
by the defeat, also using lyrics of a popular Brazilian song
to urge the nation to overcome the loss
* The game may ultimately cost Rousseff the election, which
will in turn spur a 25% rally in Brazilian stks, said
Alberto Bernal, head of research at Bulltick Capital Markets
* “This is going to be catastrophic for the national mood,”
Bernal said. “If the market sees the potential that Dilma
will not be re-elected, then it will rally in a big way.”
* “I do not think this result leads to a knee-jerk rally in
markets. Brazil has to get over this massive loss:” Dennis
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2014-07-09 02:32:25.511 GMT
By Ye Xie and Jenna M. Dagenhart
July 9 (Bloomberg) -- Conventional wisdom was that a Brazil
loss at home in World Cup would be positive for its financial
markets by souring the national mood and prompting voters to
oust Dilma Rousseff.
* Yesterday’s 7-1 loss to Germany was so crushing that it
upends that theory, according to Geoffrey Dennis, the head
of emerging-market strategy at UBS, who’s been covering
Brazil since the early 1990s
* The defeat will hurt Rousseff’s chances at re-election in
October, but the lopsided outcome could deal a blow to
investor and consumer confidence in a country that obsesses
about its national pastime, he said in interview
* “It is such a humiliating defeat that you wonder whether it
will have a negative impact on Brazilians’ psyche,” Dennis
said. “It’s going to confirm to the people that ‘Look, our
economy is struggling, we cannot get any growth, now we
don’t even have a decent football team either.’”
* Rousseff wrote on her Twitter account that she was saddened
by the defeat, also using lyrics of a popular Brazilian song
to urge the nation to overcome the loss
* The game may ultimately cost Rousseff the election, which
will in turn spur a 25% rally in Brazilian stks, said
Alberto Bernal, head of research at Bulltick Capital Markets
* “This is going to be catastrophic for the national mood,”
Bernal said. “If the market sees the potential that Dilma
will not be re-elected, then it will rally in a big way.”
* “I do not think this result leads to a knee-jerk rally in
markets. Brazil has to get over this massive loss:” Dennis
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