>>> Kenmare Resources said to have received 20p per share bid approach from Iluk

Kenmare Resources said to have received 20p per share bid approach from Iluka Resources 

Kenmare Resources shares gained yesterday, 25 June, on talk that it had received a bid approach from Iluka Resources, The Times reported. The newspaper’s market report section mentioned market gossip that Kenmare managing director Michael Carvill, had recently been sounded out about a potential 20p per share bid for the listed Anglo-Irish mining company from Australian rival Iluka, but did not cite a source for the rumour.

Traders did not know whether Iluka’s approach remains active, but did not believe that Kenmare had consulted with the company’s biggest shareholder M&G about the approach, the item continued. M&G holds a stake just short of 17.5% in Kenmare Resources, the article added.

Kenmare Resources’ share price closed up at in London yesterday, giving the company a market capitalisation of GBP 333m (EUR 414m).


Source The Times

Reuters - BNP may face one-year ban on processing some dollar pa

BNP may face one-year ban on processing some dollar payments - Link {http://reut.rs/1lfeenN}

(Reuters) - BNP Paribas (BNPP.PA) is likely to be suspended from converting foreign currencies to dollars on behalf of clients in some businesses for as long as a year, according to sources familiar with the matter, an untested and severe penalty for the French bank accused of persistently violating U.S. sanctions laws.

The New York State Department of Financial Services, headed by Benjamin Lawsky, is near a deal with Paribas on the ban on currency conversions, known as dollar clearing, people said. The bar would be the first of its kind for a global bank.

The temporary ban is expected to be limited to certain business lines related to the underlying transactions in question, and it would span various geographic regions, one of the sources said on Wednesday. Business lines that have come under scrutiny include oil trade financing.

"It won't be a death mallet, but it's a serious hit," the source said.

BNP clears hundreds of billions of dollars through New York every day, according to sources, serving customers in trade finance and commodities businesses, custodian accounts and foreign exchange.

Much business worldwide is done in dollars, and dollar clearing is a key banking activity.

It is unclear when the ban would take effect. It may be phased in, another source said on Wednesday.

It's also not clear if Paribas has found a workaround to soften the blow, such as identifying another bank to temporarily meet clients' needs.

Lawsky's office proposed the suspension as one condition for not revoking Paribas's license to operate in New York in light of the lengthy alleged violations, Reuters reported last month. At that time the length of the possible ban was not clear.

The bank is also expected to plead guilty to a federal criminal charge and pay nearly $9 billion as part of a larger settlement with multiple enforcement authorities that could be announced as early as next week, sources said.

Spokespeople for the bank, federal prosecutors and New York's banking regulator declined comment. The bank's chief executive, Jean-Laurent Bonnafe, told shareholders in May that the bank had improved its control operations to avoid sanctions-related failures in the future, without providing specifics.

U.S. authorities are probing whether BNP evaded U.S. sanctions relating primarily to Sudan, Iran and Cuba between 2002 and 2009.

The investigation has turned up some $100 billion in transactions processed by BNP that disguised identifying information in order to pass through the U.S. financial system without raising red flags, Reuters has reported. Around $30 billion of the transfers specifically violated U.S. sanctions, one of the sources has said.


SOFTENING THE BLOW?

Bank of France Governor Christian Noyer warned earlier this month that a threat to BNP's dollar-clearing operation "could put the smooth functioning of the international financial system in danger."

The bank is one of 50 participants in the Clearing House Interbank Payments System (CHIPS), the largest private-sector U.S.-dollar funds-transfer system in the world, which clears an average of $1.5 trillion in payments every day.

Banking experts have said it's hard to quantify the impact of a temporary dollar-clearing ban. The experts note that it could be hard to win customers back after they have turned to other banks to meet their dollar-clearing needs.

BNP could ask another institution to take on its dollar clearing temporarily as a so-called correspondent bank. But doing so might still result in an exodus of clients and additional headaches for those clients who do stay, according to industry experts.

Clients who stick with BNP may face additional costs and prolonged transaction times, as the correspondent bank will likely subject them to greater scrutiny, said George Thomas, principal of Radix Consulting, which advises financial services firms on payments issues.

Standard & Poor's earlier this month said it may lower BNP's long-term credit rating because the potential penalties could hurt the bank's capitalization and "disrupt some of its banking activities."

Reuters - Brunello Cucinelli transfers whole company stake to trust

Link to article : {http://reut.rs/1v81AN0}

(Reuters) - Brunello Cucinelli, founder of the Italian luxury clothier of the same name, has transferred his entire stake in the firm to a trust - a relative uncommon structure in Italy - to benefit his daughters and ensure the continuation of his philantrophic work.

Over 90 percent of Italian companies are family-owned. But only one in five survives until the third generation, making the need of careful wealth transfer planning crucial.

In a statement, the 60-year-old entrepreneur said he had transferred the ownership of Fedone S.r.l, the holding through which he controls 61.56 percent of Brunello Cucinelli SpA (BCU.MI) to the Esperia Trust Company S.r.l.

His daughters Camilla and Carolina will be beneficiaries of the trust. Camilla who sits on the board of the listed company.

Cucinelli said the trust had been established to ensure unified management of his company but also to support the Brunello Cucinelli foundation in its effort to work towards the "embellishment of mankind".

Beyond his cashmere sweaters, Cucinelli is a philanthropist who has spent much effort and money to restore the centuries-old Italian town of Solomeo, home to its company's headquarters.

He routinely donates a portion of his profits to the Brunello Cucinelli Foundation, which is involved in cultural and arts projects. In 2011, he spent over 1 million euros ($1.4 million) to restore the Etruscan Arch, one of the artistic treasures of Perugia.

The company Brunello Cucinelli SpA will continue to be subject to Italy's fiscal regime.

>>> Asian Update

Asian Market Update: PBoC skips daily liquidity drain for the first time in about 4 months


***Notable Economic Data***
- (AU) AUSTRALIA MAR-MAY JOB VACANCIES Q/Q: 2.5% V 2.6% PRIOR
- (KR) SOUTH KOREA MAY DEPT STORE SALES Y/Y: +0.8% V -1.4% PRIOR; DISCOUNT STORE SALES Y/Y: +1.2% V -4.1% PRIOR

***Index Snapshot (as of 03:30 GMT)***
- Nikkei225 +0.3%, S&P/ASX +0.8%, Kospi +0.4%, Shanghai Composite +0.6%, Hang Seng +1.0%, Sept S&P500 flat at 1,949

***Commodities/Fixed Income/Currencies***
- Aug gold -0.3% at $1,318, Aug crude oil +0.1% at $106.62/brl, Jul copper +0.1% at $3.17/lb

- JGB: (JP) Japan MoF sells ¥2.49T in 0.1% 2-yr notes, Avg Yield: 0.084% v 0.086% prior; bid to cover: 4.83x v 6.2x prior
- USD/CNY: (CN) PBoC sets yuan mid point at 6.1538 v 6.1555 prior setting (strongest Yuan setting since June 20th)
- (JP) Japan investors bought net ¥1.5T in foreign bonds last week (3rd consecutive week of net bond purchases) vs bought net ¥638.2B prior week; Foreign Investors bought net ¥295.6B in Japan stocks last week vs bought net ¥238.1B in prior week

- USD is mixed in the major pairs during Asian hours, after a unanimous slide in the US trading following wider than expected Q1 GDP contraction. USD/JPY is down about 20pips below ¥101.70 at the lows, EUR/USD is bid about 10pips to $1.3635, while AUD/USD is trading in a 20pip range below $0.9420. NZD outperformed, jumping against the dollar on technical buying to a session-high of $0.8770, also a 7-week high.

***Market Focal Points/Key Themes***
- PBoC is taking a break in draining liquidity through its twice-weekly open market operations for the first time in 37 sessions. For the week, net of maturing issues, PBoC is still injecting CNY12B, which is down from CNY15B in the prior week. Note that the move by the PBoC comes amid concerns that liquidity could tighten into month and quarter end. Some CNY30B of repos are also set to mature this week, thus adding liquidity.

- Separately, a quarterly survey from the PBoC saw some 63% of respondents state housing prices in China are still too high, down from 64% last quarter. 50% expect prices remaining unchanged and only 21% expect prices to rise.

- Overnight, Beijing formally announced the start of major infrastructure projects in central and western China, shifting the focus of "targeted stimulus" to an area where wage costs are lower.

- Bed Bath Beyond hit fresh 52-week lows afterhours following a disappointing set of Q1 results and a 70bp drop in gross margins. Q2 guidance on top and bottom line was also below estimates, even as the company affirmed its outlook for FY14.


***Equities***
US markets:
- IRM: Board approves REIT conversion following receipt of favorable IRS letter; updates guidance; +23.2% afterhours
- NBR: Completion, production businesses to merge with C&J in deal valued at $2.86B; accretive to C&J's cash EPS during 1st full year of combined operations; +4.6% afterhours
- GM: Informs North American auto dealers to halt sales of the 2013/14 Chevrolet Cruze model due to airbag issues; some cars may have an incorrect part installed - Automotive News; - 0.5% afterhours
- BBBY: Reports Q1 $0.93 v $0.95e, R$2.66B v $2.69Be; Guides Q2 Rev 1-3% y/y (implies $2.85-2.90B v $2.93Be); Affirms FY14 Rev +4% (implies $12.0B v $12.0Be), SSS +3%; -7.1% afterhours
- GPRO: Prices 17.8M share IPO at $24.00/shr; expected price range seen $21-24/shr

Notable movers by sector:
- Materials: Paladin Energy Limited PDN.AU +8.0% (provides update on uranium mine)
- Technology: Feitian Technologies 300386.CN +44.0%, Shandong Longda Meat Foodstuff 002726.CN +44.0%, Wuxi Xuelang Environmental Technology 300385.CN +44.0% (China IPOs start to trade)
- Utilities: Korea Electric Power Corp 015760.KR -6.2% (possible delay in power price hike)

>>> US After Hours

After Hours Summary: CIDM -20.7%, BBBY -7.2%, MLHR -4.6%, FUL -1.7%, CWST -0.4% following earnings/guidance

After Hours Gainers:

Companies trading higher in after hours in reaction to news: IRM +22.6% (reported that the co is electing REIT status effective January 1, 2014), CJES +20.4% (entered into agreement to merge with Nabors Industries' (NBR) completion and production business in transaction valued at $2.86 bln), UNXL +17.7% (achieved roll-to-roll pilot production of InTouch Sensors), NBR +6.2% (confirmed agreement to combine its completion and production services business with C&J Energy Services (CJES)), WOR +1.4% (increased quarterly dividend 20% to $0.18 from $0.15 per share; Board authorized repurchase of up to an additional 10 mln common shares), MDT +1.2% (announced study results showing that continuous cardiac monitoring with the Reveal XT Insertable Cardiac Monitor was superior to standard of care)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings: CIDM -20.7%, BBBY -7.2%, MLHR -4.6%, FUL -1.7%, CWST -0.4%

Companies trading lower in after hours in reaction to news: FUL -1.7% (signed agreement to acquire 95% of the equity of Tonsan for RMB 1.4 bln (~$230 mln); co also reported earnings), MRD -1.0% (priced private placement to eligible purchasers of $600 mln in aggregate principal amount of 5.875% senior unsecured notes due 2022 at par), GM -0.6% (seeing reports that co has told dealers to stop sales of Chevy Cruze due to potential problem with airbags)

>>> US Close Dow+0,29% S&P+0,49% Nasdaq+0,68%

Closing Market Summary: Stocks Climb Despite Disappointing Q1 GDP Revision

The stock market registered modest gains on Wednesday as participants looked past a pair of disappointing economic reports. The S&P 500 rose 0.5% with nine sectors ending higher, while the Nasdaq Composite (+0.7%) outperformed.

Prior to the open, the S&P 500 appeared to be on track for its third consecutive decline after first quarter GDP was revised down to -2.9% from -1.0% (Briefing.com consensus -1.8%). In addition, a more recent report—May Durable Orders—also surprised to the downside. Despite starting on a lower note, the major averages were able to rebound swiftly with the move likely supported by some short covering.

The health care sector (+1.1%) ended in the lead after showing relative strength throughout the session. The third-largest group was underpinned by solid gains in the shares of AbbVie (ABBV 54.97, +1.38) and Shire (SHPG 231.14, +7.87) amid reports AbbVie may submit an improved takeover proposal to Shire. However, Shire commented intraday, saying no changes have been made to the offer from May 30.

Even though the health care sector ended in the lead, biotechnology could not keep up. The iShares Nasdaq Biotechnology ETF (IBB 255.88, +0.79) added 0.3%.

Elsewhere, the consumer discretionary sector (+0.8%) lagged in the early going, but elbowed its way to the top of the leaderboard with help from media names after the Supreme Court ruled that start-up streaming service Aereo violated broadcaster copyright laws. CBS (CBS 62.48, +3.64) surged 6.2%, while Comcast (CMCSA 53.21, +0.57) and Disney (DIS 83.90, +1.22) advanced 1.1% and 1.5%, respectively.

Similar to the two top-weighted groups, the largest S&P 500 sector—technology (+0.6%)—also finished among the leaders. Google (GOOGL 585.93, +13.39) played a big part in the outperformance, rallying 2.3% as the company held its developers conference in San Francisco. Chipmakers, meanwhile, settled a bit behind the broader market (PHLX Semiconductor Index +0.4%).

One influential sector that could not finish among the other outperformers was the financial space (+0.1%). The sector underperformed for the second session in a row, but managed to narrow its week-to-date loss to 0.3%.

On the downside, the consumer staples sector spent the entire session climbing off lows, but still ended in the red (-0.1%) as General Mills (GIS 51.76, -1.94) weighed after reporting disappointing earnings.

Treasuries surged in reaction to this morning's data before erasing some of their gains in the afternoon. The 10-yr note added five ticks with its yield slipping two basis points to 2.56%.

Participation remained in line with recent averages as less than 650 million shares changed hands at the NYSE floor.

Economic data included Q1 GDP, May Durable Orders, and the weekly MBA Mortgage Index:
  • First quarter GDP growth was revised down from -1.0% in the second estimate to -2.9% in the third estimate. GDP increased 2.6% in Q4 2013. The consensus expected GDP to be revised down to -1.8%. 
    • In all likelihood that economic activity weakened because it was never on that strong of a footing to begin with. We've seen this play out over the past few years where growth in the first half of the year is much slower than expected. 
    • Real final sales were revised down to -1.3% from 0.6%. That was the first decline in real final sales since Q1 2011. 
  • Durable goods orders declined 1.0% in May after increasing an upwardly revised 0.8% (from 0.6%) in April. The consensus expected durable goods orders to increase 0.4%. 
    • Transportation orders fell 3.0% in May as orders of nondefense aircraft and parts fell 4.0%. The drop was unusual and can be blamed on seasonal adjustments. Boeing (BA 127.06, -2.09), which is heavily represented in the transportation data, reported solid gains in orders for May. 
    • Excluding transportation, durable goods orders declined 0.1% in May following a 0.4% increase in April, while the consensus expected these orders to increase 0.4%. 
  • The weekly MBA Mortgage Index fell 1.0% to follow last week's 9.2% decline. 
Tomorrow, weekly initial claims (consensus 310K), May Personal Income (consensus 0.4%), Personal Spending (consensus 0.4%), and Core PCE Prices (consensus 0.2%) will all be announced at 8:30 ET.
  • S&P 500 +6.0% YTD 
  • Nasdaq Composite +4.9% YTD 
  • Dow Jones Industrial Average +1.8% YTD 
  • Russell 2000 +1.7% YTD

>>> US Unusual Options Activity


Unusual Options Activity

Bullish Call Activity:
  • NAT Jul 10 calls are seeing interest with relative strength in the underlying stock -- along with select shipping names following oil export news (volume: 4300, open int: 2870, implied vol: ~37%, prev day implied vol: 30%)  -- co is expected to report earnings in Aug. 
  • MAN Jul 85 calls (volume: 3460, open int: 340, implied vol: ~22%, prev day implied vol: 19%)  -- co is expected to report earnings mid July, possibly falling outside the July expirations cycle.
  • BUD Sep 125 calls (volume: 12.5K, open int: 270, implied vol: ~21%, prev day implied vol: 19%)  -- 7K contracts traded in single transaction above the offer. Co is confirmed to report earnings July 31 before the open.
  • NEE Aug 105 calls (volume: 6530, open int: 3330, implied vol: ~18%, prev day implied vol: 17%)  --nearly 5K traded at 1.15 with a 1.05/1.20 spread. CNBC discussed unusual options activity last week on June 19. Co is expected to report earnings late July.
Bearish Put Activity:
  • CVRR Jul 25 puts are seeing interest with weakness in the underlying stock -- along with other refining related names -- and following offering news (volume: 2410, open int: 200, implied vol: ~25%, prev day implied vol: 20%)  -- co is expected to report earnings late July.
  • BGC Aug 25/26 puts are seeing interest. The BGC Aug 26 puts (volume: 3560, open int: 130, implied vol: ~40%, prev day implied vol: 36%)  and the BGC Aug 25 puts (volume: 1450, open int: 240, implied vol: ~38%, prev day implied vol: 37%)  
  • HCA puts are seeing interest by nearly 3:1. Most notable volume is in the HCA Jan15 57.5 puts (volume: 7510, open int: 10, implied vol: ~23%, prev day implied vol: 22%)  -- nearly all of the volume in the Jan15 57.5 puts occurred in single transaction. 
Sentiment: The CBOE Put/Call ratio is currently: 0.78... VIX: (11.57, -0.56, -4.6%).
July 18 is options expiration -- the last day to trade July equity options.

>>> Vodafone Group plc EU has approved the €7.2B ($9.8B) acquisition of Ono in s

Vodafone Group plc EU has approved the €7.2B ($9.8B) acquisition of Ono in spain - financial press

- Reminder: on 3/17: Vodafone confirmed to buy Spain's Grupo Corporativo Ono in transaction consisting of €7.2B on debt and cash free basis Transaction is expected to be accretive to adjusted EPS and FCF per share from the first full year post completion after cost and capex synergies and before integration costs. 
- Vodafone expects to achieve cost and capex synergies with a run-rate of approximately €240 million (£200 million) before integration costs by the fourth full year post completion, equivalent to a net present value of approximately €2.0 billion (£1.7 billion) after integration costs. 
- Ono has the largest next-generation network in Spain

>>> Sapiens International Reportedly Alpha Group has broken off negotiations to

Sapiens International Reportedly Alpha Group has broken off negotiations to buy Sapiens after discussing a deal with a 20% premium - Globes

"The Alpha Group held negotiations until several days ago with the Formula Systems software holding company for the purchase of one of its portfolio companies - apparently Sapiens, which develops insurance industry software - in a transaction reflecting a market cap of $420 million (a 20% premium on the market value). Contacts between the parties were recently discontinued, apparently because of an inability to agree on a share price for the transaction. Formula and the Alpha Group declined to comment." 

(BFW) AbbVie Could Pay as Much as GBP65/Shr for Shire: Jefferies

AbbVie Could Pay as Much as GBP65/Shr for Shire: Jefferies
2014-06-25 15:12:57.198 GMT


By Allison Connolly
     June 25 (Bloomberg) -- AbbVie can raise offer for Shire up
to GBP65/shr and maintain double-digit EPS accretion, assuming
4% debt rate, Jefferies says in note.
  * Says for every GBP5/shr increase to its bid, AbbVie loses
    ~8-9 cents of accretion in 2020 vs the implied >$1.00 of
    accretion at current stock price
  * Expects AbbVie to raise offer until deal gets done
  * Says promise of share buybacks is important for U.K.
    shareholders who may not wish/won’t be able to hold AbbVie
    stock
  * Maintains buy rating, PT GBP66
  * NOTE: Earlier, AbbVie CEO Won’t Rule Out Going Hostile for
    Shire

For Related News and Information:
First Word scrolling panel: FIRST<GO>
First Word newswire: NH BFW<GO>

To contact the reporter on this story:
Allison Connolly in London at +44-20-3525-7043 or
aconnolly4@bloomberg.net
To contact the editor responsible for this story:
James Ludden at +44-20-7673-2645 or
jludden@bloomberg.net