>>> Glencore Xstrata Plc To buy back up to $600M in Convertible Bonds due 2014


Glencore Xstrata Plc To buy back up to $600M in Convertible Bonds due 2014

announces that it intends to invite holders of the Bonds to tender their Bonds for repurchase by Glencore for cash (the "Repurchase"). Glencore is targeting an aggregate principal amount of approximately USD 600 million for the Repurchase. The Repurchase will be financed with Glencore's current liquidity position. 

Citigroup Global Markets Limited and SocitGnrale Corporate & Investment Banking are acting as Joint Dealer Managers in connection with the Repurchase, which will be conducted on the date of this announcement by solicitation of indications from certain holders of the Bonds, outside the United States and subject to the Invitation and Distribution Restrictions below, of their interest in selling such Bonds to Glencore as part of a reverse bookbuilding process. Depending on the indications of interest received, Glencore may decide not to repurchase the Bonds which are tendered. 

If any Bonds are repurchased, the purchase price that Glencore will pay for each Bond will be determined pursuant to a modified Dutch auction procedure with a minimum purchase price per Bond of 108.50% of the principal amount of such Bond (excluding accrued interest per Bond of USD 2,361.11). 

Glencore retains complete discretion as to the final size of the Repurchase and may in its sole discretion determine not to proceed with the Repurchase. The reverse bookbuilding period is expected to close at 5.00 pm (London time) on the date of this announcement, subject to the right of Glencore to close or extend, at its sole discretion, the reverse bookbuild at any time. Glencore encourages holders to contact the Joint Dealer Managers promptly if they wish to participate in the reverse bookbuilding as Glencore retains the right to close the bookbuilding period early. It is expected that the purchase price and the principal amount of the Bonds accepted for repurchase will be confirmed on 16 June 2014 and the settlement date in relation to the Bonds to be repurchased is expected to be on 20 June 2014. Accrued interest will be paid on Bonds tendered and accepted for repurchase up to (but excluding) the Settlement Date.

(BFW) United Utilities, Severn Have 40% Premia Bid Potential, DB Says

United Utilities, Severn Have 40% Premia Bid Potential, DB Says
2014-06-16 07:54:07.108 GMT


By Nadine Skoczylas
     June 16 (Bloomberg) -- Deutsche Bank continues to see
potential for bids in U.K. water sector after completion of
price review by U.K. regulator Ofwat, in note dated June 13.
  * Based on broker’s analysis, possible bidder could pay GBP25
    per share for Severn Trent, GBP10/shr for Pennon and
    GBP11.5/shr for United Utilities, 25%-30% above current
    prices
    * Deutsche Bank sees premia approaching 40% possible for
      United Utilities, Severn; potentially 50% for Pennon’s
      South West Water
    * Severn, United Utilities will resubmit business plans
      for 2015-2020 period to Ofwat on June 27, with initial
      determinations on Aug. 29
    * Final determinations due in Dec. w/new prices from April
      1
    * Particularly important for United Utilities due to gap
      between its cost ests. and Ofwat’s
  * United Utilities down 0.6% today after closing up 0.7% on
    June 13; Pennon down 0.3% and Severn falls 0.1%
  * NOTE Jan. 29: Analysis of Bloomberg data found that
    dealmaking in U.K. water sector tends to increase only after
    Ofwat completes a price review


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

To contact the reporter on this story:
Nadine Skoczylas in Jerusalem at +972-2-640-1103 or
nelsibai@bloomberg.net
To contact the editors responsible for this story:
James Ludden at +44-20-7673-2645 or
jludden@bloomberg.net
Gaurav Panchal

>>> What to look at today (+Week End) - 16/06/2014

US Market Closed higher on Friday, but not enought to be in the green on the week (S&P-0.7% Nasdaq-0.3% on the week), INTC helped the Tech Sector to OP, Energy names higher with Oil stronger on Iraq situation, volume stayed low @ 560mil shares...VIX @ 12.18 -3.03%...COV US Should trade higher on Medtronic bid..Asian Equities lower on energy & metals price higher on Middle East tension...Oil $107.50 Gold $1,280/oz Silver $19.80...Nikkei -1.21% HS+0.03% Shanghai+0.48%

Eur$ 1.3548 S&P FUt -0.23% EurosToxx Fut. : -0.49% FTSE Fut -0.32% CAC40-0.25% DAX -0.35% SMI -0.25%

Macro :
- BlackRock’s Fink Says Spanish Banking Crisis Is Over: ABC
- ECB's Weidmann: Rejects calls from France and Italy for a deliberate devaluation of the euro
- Long DAX vs MSCI Europe, SX5E, JPMorgan’s Matejka Says {NSN N78U196KLVR9 <go>}
- ECB’s Nowotny Says Bank Stress Test May Be ‘Too Strict’: SZ
- Bootle Sees ‘Classic Signs’ of U.K. Housing Bubble: Telegraph
- Renzi Should Mimic Schroeder in Cutting Taxes, Berger Says
- Technology May Create $20b Boost to London Economy: Reuters

Keep an eye on : (added news vs yest. are in Bold)
- ATLN VX : Actelion Pharmaceuticals’ Selexipag Meets Primary Endpoint
- ATLN VX : Buy Actelion, Selexipag Data May Transform Co., BofAML Says {NSN N78PTP6KLVR4 <go>}
- ATO FP : Worldline unit launches its IPO on the regulated market of Euronext Paris: Offering size seen at €610M priced between €16.40-20.00/shr
- ALO FP : France’s Sapin Says GE May Improve Bid for Alstom Energy Assets
- ALO FP : Siemens, Mitsubishi Heavy to Make Joint Bid for Alstom: WSJ
- ALO FP : Siemens Said Preparing Alstom Cash Offer to Gain Gas Turbines {NSN N782FV6VDKHX <go>}
- BPE IM : Popolare Emilia Favors Potential Mergers, CEO Tells Sole
- BG/ LN : Centrica’s Laidlaw Not Interested in BG Group Role, Sky Reports
- BNP FP : France’s Sapin Sees Progress Toward ‘Fairer’ Sanctions on BNP
- BNP FP : BNP Paribas May Be Close to US Settlement, Les Echos Says
- EN FP : Bouygues Telecom Must Reduce Cost Base, CEO Roussat Says
- BSY LN : BSkyB May Pay Up to EU8.5b for Fox Italy, Germany Units: Times
- CO FP : Casino rumoured to be considering buyout of CBD, Co has a 41,7% stake in CBD (Market Cap $12,7b)
- CGG FP : *CGG SAYS IT’S NOT AWARE OF ANY POTENTIAL TAKEOVER BID
- DSY FP : Overweight Dassault Systemes, Morgan Stanley Says After CMD
- DEB LN : Too Soon to Buy Debenhams on Profit Potential: Jefferies
- F IM : Fiat Approves Merger Plan for Fiat Chrysler Automobiles,Approves Bond Sales of Up to EU4b or Equivalent
- F IM : Ferrari Says Reports It Will Quit F-1 Are ‘Pure Speculation’
- GFJ GY : Buy Gagfah, Removed Overhang To Result in Re-rating: Deutsche
- GAS SM : Gas Natural, Endesa, Iberdrola Sign EU40b Shale Deals: Expansion
- UG FP : Peugeot Brand Head Sees Double-Digit Europe Growth in 2014
- PUB FP : Could be interested by Interpublic - NYT
- MB IM : Mediobanca Prepares New Shareholders’ Pact, Corriere Says
- MEO1V FH : Metso could acquire in pumps and valves
- NOVN VX : Novartis’s Holly Springs Licensed by FDA
- NOVN VX : Buy Novartis Ahead of Management Event, UBS Says
- REP SM : Repsol Has EU9B for Purchases, CFO Martinez Tells El Economista
- RWE GY : RWE Sale of Dea Unit to Russian Investor Faces German Probe
- SAN FP : Take Some Profits in Sanofi, JPMorgan Says After Diabetes Data
- SIE GY : Siemens Shareholder Opposes Alstom Offer, Tagesspiegel Says
- SIE GY : Siemens Said Preparing Alstom Cash Offer to Gain Gas Turbines
- SN/ LN : Medtronic in talks to combine with Covidien - WSJ
- TIS IM : Tiscali Reports FY Net €4.8M v €15.8M y/y, EBITDA €52.4M v €44.3M y/y, Rev €223.4M v €233.8M y/y - FY 13 in line with targets. 2014 targets show Revenues and EBTDA in line with 2013.
- TUNG LN : Tungsten to Provide Funding for U.K. SMEs: FT Link
- VIE FP : Veolia, RATP JV to Bid for Singapore Bus License: Straits Times
- VOE AV : Voestalpine Targeting Steel Acquisitions, CEO Says: FT
- VOD LN : Vodafone Global Enterprise to Bid for Cobra Automotive Tech

>>> Brokers Upgrades & DOwngrades - 16/06/2014

>>> Up
*DEBENHAMS RAISED TO EQUALWEIGHT VS UNDERWEIGHT AT BARCLAYS
*RSA RAISED TO OVERWEIGHT VS EQUALWEIGHT AT BARCLAYS
*SNAM RAISED TO BUY VS NEUTRAL AT UBS

>>> Down
*EDP CUT TO NEUTRAL VS BUY AT UBS
*ROLLS-ROYCE CUT TO SELL VS HOLD AT SOCGEN
*ROSENBAUER CUT TO HOLD VS BUY AT BERENBERG
*VESTAS CUT TO UNDERWEIGHT VS EQUALWEIGHT AT BARCLAYS

>>> PT Change


>>> Initiation

*STATOIL RATED NEW UNDERPERFORM AT JEFFERIES; PT NOK160.00
*WORLD DUTY FREE RATED NEW BUY AT DEUTSCHE BANK, PT EU12

>>> Call
>> Country
- UBS Says Buy Japan Stocks on Dips; Topix May Gain 15% by Yr-End
- Long DAX vs MSCI Europe, SX5E, JPMorgan’s Matejka Says {NSN N78U196KLVR9 <go>}
>> Sector
- European Mechanicals Ests. Raised 1%-2% at Credit Suisse on FX

(Les Echos) BNP Paribas: negotiations with the United States in the final straig

The agreement should be completed quickly.
It will not be made public immediately, allowing the bank to organize.
Negotiation between BNP Paribas and the U.S. authorities has accelerated in recent days, to the point that the main principles of an agreement would be in the process of being calibrated. This "settlement" could be completed quickly. Although his tone must have been very hard for the bank, it would allow him to avoid a trial. Asked yesterday on the subject "Grand Rendez-Vous Europe 1 -" The World "- iTV", the Finance Minister Michel Sapin, is confident: "We have made ​​progress towards more equitable and sanctions that Oberent not too strong future. "The bank is accused of violating the U.S. economic embargo on Sudan, Iran and Cuba, conducting operations in these countries in dollars. If the exact terms of the arrangement remain to be established, BNP Paribas must expect three types of unprecedented sanctions.
First, the bank will pay a fine that could settle in total between 8 and 10 billion. The U.S. Department of Justice (DoJ) began his trading $ 16 billion and, according to our information, the French bank would initially make a proposal, against a little less than $ 5 billion. To date, the bank has set aside in its accounts of $ 1.1 billion.
Second sanction: the temporary suspension of the authorization to offset dollar transactions on behalf of clients to and from the United States. The scope of this restriction and its duration are not yet arrested. Depending on where the cursor will be placed, the consequences will be very different. The Bank of France said that such a provision could be systemically important. Some French bankers are measured. The CEO of Société Générale, Frédéric Oudéa, said Wednesday that the legal dispute raised by the BNP Paribas USA systemic dimension should not be "exaggerated". But the bank, fifth world player of "clearing" dollar trading volume to pass through one or more intermediaries is as well generate some risk for the banking system. The implementation of this measure is also so complex that it would require, according to an expert, a period of implementation. That the U.S. authorities would be prepared to give the bank, according to our information.
Admission of guilt
Finally, the third component penalties regarding the obligation for French bank "to plead guilty." The group has put all his energy to escape the admission of guilt by the parent company or even its Swiss subsidiary, responsible for most of the operations considered fraudulent. The guilty plea can indeed cause a withdrawal of banking license by the local regulators in countries where BNP Paribas operates. It could also push some customers, especially Americans, to no longer work with the French bank. However, the bank should not be able to escape.
Even if it is signed soon, the agreement will not be made public immediately. In the best case, it should not be revealed until the beginning of July. "For Credit Suisse, there were three weeks between the signature and the announcement of the guilty plea," said an informed source . This period should allow BNP Paribas to develop a plan B for the compensation of its dollar transactions and contact the various national regulators concerned to ensure that they do not call into question its license. Assurance that Credit Suisse had obtained in the intervening period from the Fed, Switzerland and the United Kingdom.

(Les Echos) BNP Paribas : les négociations avec les Etats-Unis dans la dernière

BNP Paribas : les négociations avec les Etats-Unis dans la dernière ligne droite


L'accord devrait être bouclé rapidement.
Il ne sera pas rendu public immédiatement, ce qui permettra à la banque de s'organiser.
La négociation entre BNP Paribas et les autorités américaines s'est accélérée ces derniers jours, au point que les grands principes d'un accord seraient en passe d'être calés. Ce « settlement » pourrait donc être bouclé rapidement. Même si son ton devait être très dur pour la banque, il lui permettrait d'éviter un procès. Interrogé hier sur le sujet au « Grand Rendez-Vous Europe 1 - "Le Monde" - iTélé », le ministre des Finances, Michel Sapin, s'est montré confiant : « Nous avons progressé vers des sanctions plus équitables et qui n'obèrent pas de manière trop forte l'avenir. » La banque est accusée d'avoir violé les embargos économiques américains au Soudan, en Iran et à Cuba, en réalisant dans ces pays des opérations en dollars. Si les termes exacts de l'arrangement restent à fixer, BNP Paribas doit s'attendre à trois types de sanctions sans précédent.
En premier lieu, la banque devra verser une amende qui pourrait s'établir au total entre 8 et 10 milliards de dollars. Le département de la Justice américain (DoJ) avait commencé sa négociation à 16 milliards de dollars et, selon nos informations, la banque française aurait dans un premier temps fait une contre-proposition à un peu moins de 5 milliards de dollars. A ce jour, la banque a provisionné dans ses comptes 1,1 milliard de dollars.
Deuxième sanction : la suspension temporaire de l'autorisation de compenser des opérations en dollars pour le compte de clients vers ou depuis les Etats-Unis. Le périmètre de cette restriction et sa durée ne sont pas encore arrêtés. Selon l'endroit où seront placés les curseurs, les conséquences seront très différentes. La Banque de France a affirmé qu'une telle disposition pourrait être de portée systémique. Certains banquiers français sont plus mesurés. Le PDG de la Société Générale, Frédéric Oudéa, a estimé mercredi que la dimension systémique posée par le contentieux juridique de BNP Paribas aux Etats-Unis ne devait pas être « exagérée ». Mais, pour la banque, cinquième acteur mondial du « clearing » en dollars, le volume de transactions à faire transiter par un ou plusieurs intermédiaires est tel qu'il engendrerait bien une part de risque pour le système bancaire. La mise en place de cette sanction est en outre si complexe qu'elle nécessiterait, selon un expert, un délai de mise en oeuvre. Ce que les autorités américaines seraient prêtes à accorder à la banque, selon nos informations.
Reconnaissance de culpabilité
Enfin, le troisième volet des pénalités concerne l'obligation pour la banque française de « plaider coupable ». Le groupe a mis toute son énergie à échapper à cette reconnaissance de culpabilité par la maison mère ou même par sa filiale suisse, responsable de la plupart des opérations considérées comme frauduleuses. Le plaider coupable peut en effet entraîner un retrait de licence bancaire par les régulateurs locaux des pays où BNP Paribas opère. Il pourrait également pousser certains clients, en particulier américains, à ne plus travailler avec la banque française. Toutefois, la banque ne devrait pas pouvoir y échapper.
Même s'il est signé très prochainement, l'accord ne sera pas immédiatement rendu public. Dans le meilleur des cas, il ne devrait donc pas être révélé avant le début du mois de juillet. « Pour Credit Suisse, il y a eu trois semaines entre la signature et l'annonce du plaider-coupable », indique une source bien informée. Ce délai devrait permettre à BNP Paribas d'élaborer un plan B pour la compensation de ses transactions en dollars et de contacter les différents régulateurs nationaux concernés pour s'assurer qu'ils ne remettront pas en cause sa licence. Une assurance que Credit Suisse avait obtenue dans cette période intermédiaire auprès de la Fed, de la Suisse et du Royaume-Uni

>>> Allergan shareholder rights plan ruling sought by Pershing Square, Valeant

Allergan shareholder rights plan ruling sought by Pershing Square, Valeant 

A joint venture of Pershing Square Capital Management and Valeant Pharmaceuticals International has requested that a court rule that its push for a special shareholder meeting to dislodge the majority of Allergan's board members won't lead to an anti-takeover defense, according to a newswire report.

Bloomberg cited Pershing Square CEO Bill Ackman as saying Friday that "this lawsuit" is a result of Allergan's refusal to confirm that its shareholder rights plan "does not apply to" the pursuit of "a special meeting." According to the article, Pershing Square owns a 9.7% interest in Irvine, California-based Allergan as part of a joint venture entity -- PS Fund 1 LLC -- with Laval, Quebec-based Valeant.

PS Fund filed with the Securities and Exchange Commission a preliminary proxy on 2 June to kick off the process for a special shareholder meeting, and the JV entity sued Allergan Friday in a Delaware court and requested that the judge find that the quest for a special meeting won't activate the company's shareholder rights plan against takeovers. According to the article, PS Fund pursued the course of action it did because it was concerned that if it secured backing from one-quarter of shareholders to move ahead with a special meeting, it would be deemed 25% "beneficial owners" of the takeover target, thereby activating the shareholder rights plan.

RTR - Airbus, Safran team up on response to SpaceX -sources

* Airbus, Safran set to form jv in space launchers -sources
* Move follows warnings over impact of low-cost rival SpaceX
By Tim Hepher and Cyril Altmeyer
PARIS, June 15 (Reuters) - Airbus Group and Safran are set to boost co-operation with a joint venture in space launchers, aiming to galvanize Europe's competitive response to U.S. low-cost rival SpaceX, people familiar with the matter said.
The heads of the two companies, both leading contractors on the Ariane space launcher, are due to meet French President Francois Hollande early on Monday, Hollande's office said, but no official reason for the meeting was provided.
Two people familiar with the matter said space would top the agenda, amid growing pressure from industrial groups for a shake-up of Europe's public-private system of building rockets.
The move is expected to involve closer partnership between Airbus Defence & Space, which builds the Ariane launcher, and the Herakles space propulsion unit of French aerospace group Safran, which makes its solid rocket motors.
It is the first concrete step towards consolidation after Airbus Group Chief Executive Tom Enders, speaking exclusively to Reuters last month, called for a shake-up to prevent Europe becoming "irrelevant" in the $6.5 billion space-launch industry.
His call for a bigger say for industry was triggered by the arrival of low-cost U.S. based Space Exploration Technologies (SpaceX), run by electric car mogul Elon Musk.
But industry sources say there have been disagreements with France's CNES space agency over the right strategy to adopt.
Musk's SpaceX company offers lightweight rocket launchers to send up communications satellites at lower prices than those currently on the market, including Europe's Ariane 5.
Europe aims to replace the Ariane 5 rocket launcher with an Ariane 6 by 2021, but is wrestling with complex structures behind the design, manufacture and marketing of space launchers as well as strict conditions on the national share of work.
Under the current system, government agencies such as CNES in France and the DLR inGermany design launchers, and pass the designs to Airbus Group to manufacture the product, which is then passed to a third party, Arianespace, to market.
Airbus Group owns around 30 percent of Arianespace, whose biggest shareholder is the French space agency, CNES. Safran owns just under 11 percent.
By seizing the industrial initiative, Enders and Safran Chief Executive Jean-Paul Herteman are effectively offering to lead Europe's fight-back against SpaceX but must also tackle sensitivities among public bodies involved, observers said.
Enders has likened the threat posed by SpaceX to a wake-up call that forced European planemaker Airbus to reorganize after rivals Boeing and McDonnell Douglas merged almost 20 years ago.
Without a new industrial set-up, Ariane 6 and the intermediary Ariane 5 ME will be a failure, he believes.
Les Echos newspaper, also reporting a new co-operation venture, said Airbus and Safran would propose a new technical configuration for Ariane 6 as part of the move. France andGermany have been at odds over the rocket's design, which must be resolved ahead of a ministerial meeting in December.