>>> IBM - Reportedly to resume talks to sell chip foundry unit to Globalfoundrie

Reportedly to resume talks to sell chip foundry unit to Globalfoundries - financial press 
Negotiations had broken down in July after IBM offered to pay Globalfoundries about $1 billion to take the unit, a person familiar said at the time. IBM is now willing to pay Globalfoundries more to take over the operations, the person said yesterday, asking not to be identified because the discussions are private. 

**Reminder: In late July, IBM broke off talks to sell chip foundry unit to GlobalFoundries as the two firms could not agree on terms. In early June, it was reported that IBM was near a deal with GlobalFoundries for chip-making unit in a deal which could be worth around $1.0B (about half of IBM's expectations for $2B)

>>> US Gapping up

Gapping up
In reaction to strong earnings/guidance: SIMO +14.9%, CAMP +7.2%, ISCA +4.9%, NLNK +1.9%, IDT +0.6%

Select Ebola related names showing strength: CMRX +3.9%, TKMR +3.4%, LAKE +2.8%

Select metals/mining stocks trading higher: IGLD +2.5%, IAG +0.8%, CDE +0.8%, SVM +0.6%

Other news: GTAT +15% (modest retracement following yesterday's massive decline), MAGS +15% (receives $8.2 mln of new orders; majority of the contracts are for expansions, changes and upgrades of existing homeland security installations in Israel), XCO +10.6% (announces sale of interests in Compass Production Partners), BCLI +9% (FDA grants fast track designation to NurOwn for the treatment of ALS), OXGN +8.3% (announced that data from the Phase 2 GOG186I study of fosbretabulin in combination with bevacizumab will be presented on November 9 at the International Gynecologic Cancer Society), GSAT +7.1% (issues statement in response to Kerrisdale Capital presentation), FEYE +5.8% (FireEye and SingTel partner to launch first managed defense solution; also, announced targeted attack protection for the Apple (AAPL) platform), BCRX +2.4% (announces late breaker presentation of OPuS-1 Phase 2 Trial results at the 23rd EADV Congress will be present Oct 11), ADHD +2.3% (after yesterday's 57% decline), ACHN +1.8% (disclosed it entered into a Master Security Agreement for a $1,000,000 Capital Expenditure Line of Credit), SBLK +1.6% (collected $8.016 mln from the sale of its claim against PAN OCEAN), REGN +1.3% (EYLEA (aflibercept) Injection received FDA approval for macular edema following retinal vein occlusion), PSTI +1.3% (wins cell therapy patent case in Europe; European Patent Office confirms validity of amended claims )

Analyst comments: ADHD +2.3% (upgraded to Outperform at FBR Capital), NDLS +2.1% (upgraded to Buy from Hold at Jefferies), AUY +2.1% (upgraded to Neutral from Underweight at HSBC Securities), GMCR +1.9% (initiated with a Buy at Goldman), KPTI +1.1% (initiated with a Outperform at Wedbush), IP +1.1% (upgraded to Buy from Neutral at BofA/Merrill), CCK +0.7% (upgraded to Outperform from Neutral at Macquarie
)

>>> US Gappingdown

Gapping down
In reaction to disappointing earnings/guidance: SODA -15.1%, TCS -14.6%, EZPW -13.6%, CBK -11.8%, AEGN -9.3%, AGCO -8.7%

M&A news: RIO -1% (issues statement regarding press speculation surrounding Glencore (GLNCY))

Notable EU names showing weakness: ORAN -2.2%, DB -2.1%, NOK -2%, NBG -1.8%, RCL -1.2%, CCL -1.1%, AZN -1.1%, UBS -1.1%, LYG -0.8%, CS -0.8%

Other news: KOS -6.1% (announces secondary public offering of 15 mln common shares), BBEP -5.3% (announces public offering of 14 mln common units), END -5.3% (announced the appointment of a Chief Restructuring Officer), IBIO -4.7% (files for sale of up to 23,418,172 shares of common stock by Aspire Capital Fund), CNHI -4.3% (in sympathy with AGCO earnings), KCAP -3.8% (commences 3 mln share public offering), DYN -2.1% (launched 22.5 mln share common stock and 4 mln share mandatory convertible preferred stock offerings), NRP -2% (prices 8.5 mln common units at $12.02 per common unit), OTIV -1.6% (filed for $50 mln mixed securities shelf offering), BUD -1.6% (still checking), MBLY -1.4% (cont weakness), NUS -1% (following afternoon strength on volume)

Analyst comments: LVS -3.1% (downgraded to Hold from Buy at Deutsche Bank), URI -2.7% (downgraded to Neutral from Buy at BofA/Merrill), DE -2.6% (downgraded to Underperform from Neutral at BofA/Merrill), SAN -1.4% (downgraded to Reduce from Neutral at Nomura), CMI -1.3% (downgraded to Neutral from Buy at BofA/Merrill), ATI -1.2% (downgraded to Hold from Buy at KeyBanc Capital Mkts), USB -0.8% (downgraded to Mkt Perform from Strong Buy at Raymond James )

(Le Monde) Club Med: Chinese offer loses the support of employees

Club Med: Chinese offer loses the support of employees

Guo Guangchang is more than ever the rope in the battle for control of the Mediterranean Club. The public offer (IPO) of 840 million euros proposed by Chinese billionaire received Monday, October 6, the double support of leading cadres of Club Med and its board of directors. Unanimously, it "recommends that those shareholders who wish to receive immediate liquidity" to tender their shares to the Chinese takeover, better-priced than Italian Andrea Bonomi.
However, the suspense remains. Mr. Bonomi has indeed more than a month to bid again. In addition, Mr. Guo has lost the support of the employees of the Club. The works council, which had favored the initial offering of its conglomerate Fosun, then allied to the original French funds Ardian and CEO Henri Giscard d'Estaing, tacked. On Monday, he voted overwhelmingly against the new project. At issue: the French anchor Club, which now offers 93% Chinese no longer guarantees he said. Beyond that, it is the evolution of the strategy raises concerns, particularly its focus on China.
Internationalization, upmarket: the project deployed since 2003 by Mr Giscard d'Estaing is it good? Mostly yes, consider Fosun as Bonomi. But where Fosun, combined with the current CEO, plays continuity, Mr. Bonomi clearly intends to accelerate the movement. He wants to inflate 45% planned investments, and review some of the priorities.


Club Med : l’offre chinoise perd le soutien des salariés

Guo Guangchang tient plus que jamais la corde dans la bataille engagée pour le contrôle du Club Méditerranée. L’offre publique d’achat (OPA) de 840 millions d’euros proposée par le milliardaire chinois a reçu, lundi 6 octobre, le double appui des cadres dirigeants du Club Med et de son conseil d’administration. A l’unanimité, celui-ci « recommande à ceux des actionnaires qui souhaitent bénéficier d’une liquidité immédiate » d’apporter leurs titres à l’OPA chinoise, mieux-disante que celle de l’Italien Andrea Bonomi.

Pour autant, le suspense demeure entier. M. Bonomi dispose en effet de plus d’un mois pour surenchérir à nouveau. En outre, M. Guo vient de perdre le soutien des salariés du Club. Le comité d’entreprise, qui s’était déclaré favorable à l’offre initiale de son conglomérat, Fosun, alors allié au fonds d’origine française Ardian et au PDG Henri Giscard d’Estaing, a viré de bord. Lundi, il a voté en majorité contre le nouveau projet. En cause : l’ancrage français du Club, que l’offre désormais à 93 % chinoise ne garantit plus selon lui. Au-delà, c’est l’évolution de la stratégie qui suscite l’inquiétude, en particulier sa focalisation sur la Chine.

Internationalisation, montée en gamme : le projet déployé depuis 2003 par M. Giscard d’Estaing est-il le bon ? Plutôt oui, jugent Fosun comme Bonomi. Mais là où Fosun, allié au PDG actuel, joue la continuité, M. Bonomi souhaite nettement accélérer le mouvement. Il veut gonfler de 45 % les investissements prévus, et revoir certaines des priorités.

(BFW) Club Med Employees Reject New Fosun Offer: Le Monde

Club Med Employees Reject New Fosun Offer: Le Monde
2014-10-07 12:08:55.237 GMT


By Steve Rhinds
Oct. 7 (Bloomberg) -- The company’s workers’ committee,
which was in favor of Fosun’s initial bid, voted against the new
offer, daily newspaper Le Monde reports.
* Employee representatives were concerned about an increasing
focus on China in Fosun’s strategy: Le Monde


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>>> SodaStream guides Q3 well below consensus -- SODA is halted and will resume

SodaStream guides Q3 well below consensus -- SODA is halted and will resume trading at 8:00

Co issues downside guidance for Q3 (Sep), sees Q3 (Sep) revs of ~$125 mln vs. $153.83 mln Capital IQ Consensus, with operating income of $8.5 mln, below estimates near $17 mln.
  • "Our U.S. business underperformed due to lower than expected demand for our soda makers and flavors which was the primary driver of the overall shortfall in the third quarter. While we were successful over the last few years in establishing a solid base of repeat users in the U.S., we have not succeeded in attracting new consumers to our home carbonation system at the rate we believe should be achieved. The third quarter results are a clear indication that we must alter our course and improve our execution across the board. We have already begun a strategic shift of the SodaStream brand towards health & wellness, primarily in the U.S., where we believe this message will resonate more strongly with consumers. In addition, we are developing a comprehensive growth plan for the Company that will encompass Marketing, Product and Innovation, Distribution, Operations and Organization. We intend to share more specifics around our growth plan when we report third quarter results later this month."
  • Co will report Q3 results on Oct 29.
  • SODA will resume trade at 8:00.

(BN) *SODASTREAM SAYS MOVING BRAND TOWARDS HEALTH & WELLNESS

PRN 10/07 11:30 SodaStream Reports Preliminary Third Quarter 2014 Results
BN 10/07 11:32 *SODASTREAM PRELIM 3Q OPER INCOME $8.5M, EST. $17.6M
BN 10/07 11:32 *SODASTREAM SAYS MOVING BRAND TOWARDS HEALTH & WELLNESS
BN 10/07 11:31 *SODASTREAM TO DISCUSS GROWTH PLAN SPECIFICS LATER THIS MONTH
BN 10/07 11:31 *SODASTREAM SAYS 3Q PRELIM RESULTS INDICATION MUST ALTER COURSE
BFW 10/07 11:30 *SODASTREAM PRELIMINARY 3Q REV. $125M, EST. $154.4M
BN 10/07 11:30 *SODASTREAM PRELIMINARY 3Q REV. ABOUT $125M, EST. $154.4M
BN 10/07 11:30 *SODASTREAM PRELIMINARY 3Q OPER INCOME $8.5M
BN 10/07 11:30 *SODASTREAM PRELIMINARY 3Q REV. $125M
BN 10/07 11:30 *SODASTREAM REPORTS PRELIMINARY 3Q '14 RESULTS
SodaStream Preliminary 3Q Rev. $125m, Est. $154.4m
2014-10-07 11:31:17.918 GMT


By Brad Skillman
Oct. 7 (Bloomberg) -- “Our U.S. business underperformed
due
to lower than expected demand for our soda makers and flavors
which was the primary driver of the overall shortfall in the
third quarter.”
* SODA halted, down 44% YTD

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