(BFW) *WAERTSILAE CEO SEES MARKETS ‘CHALLENGING’ FOR SEVERAL YEARS

BN 09/29 13:21 *WAERTSILAE CEO BJOERN ROSENGREN SPOKE IN INTERVIEW IN HELSINKI
BN 09/29 13:21 *WAERTSILAE CEO: INVESTOR AB'S STAKE INCREASE `QUALITY STAMP'
BN 09/29 13:21 *WAERTSILAE CEO SEES MARKETS `CHALLENGING' FOR SEVERAL YEARS
BN 09/29 13:21 *WAERTSILAE HAS FINANCIAL MUSCLE FOR ACQUISITIONS, CEO SAYS
*WAERTSILAE CEO SEES MARKETS ‘CHALLENGING’ FOR SEVERAL YEARS
2014-09-29 13:22:06.486 GMT

--BRIAN LYSAGHT

-0- Sep/29/2014 13:22 GMT

>>> US Gapping up

Gapping up
In reaction to strong earnings/guidance: RCON +7.2%, LAS +2.3%, KOOL +1.7%, CALM +1.2%, ADP +0.7%

M&A news: AMBI +87.8% (Daiichi Sankyo (DSNKY) to acquire Ambit Biosciences for $15 per share in cash through a tender offer), DWA +26.4% (Softbank (SFTBY) is in discussions to purchase DWA, according to reports, Variety discusses comments from sources that chances of Softbank (SFTBY) acquiring DWA are slim), ATHL +24.6% (Encana (ECA) to acquire all of the issued and outstanding shares of common stock of Athlon by means of an all-cash tender offer for $58.50 per share), TIBX +21% (to be acquired by Vista Equity Partners for $24.00 per share in cash), AMAG +15.4% (to acquire Lumara Health for $600 mln in cash and $75 mln in stock and additional contingent consideration of up to $350 mln)

Other news: EXEL +18.6% (announces positive results from Phase 3 pivotal trial of Cobimetinib in combination with Vemurafenib in patients with BRAF V600 Mutation-positive advanced melanoma), ALIM +16.6% (provides details on FDA approval Of ILUVIEN as the first long-term treatment for diabetic macular edema), ECYT +10.2% (Phase 2b TARGET trial results show improved survival in Adenocarcinoma non-small cell lung cancer patients treated with Endocyte's Vintafolide), PSDV +9.8% (reports approval of ILUVIEN for diabetic macular edema; triggers $25 mln milestone payment from Alimera Sciences (ALIM)), CYTR +7.9% (receives multiple FDA Orphan Drug designations for Aldoxorubicin for the treatment of Glioblastoma), PE +5.6% (still checking), ACST +4.1% (reports successful CaPre Phase II TRIFECTA results proving statistically significant improvements in triglycerides & non-HDL-C), ARIA +4% (announces updated clinical results for AP26113, study results show sustained anti-tumor activity), SGEN +3.9% (Seattle Genetics and Takeda (TKPYY) announce positive data from Phase 3 AETHERA clinical trial of ADCETRIS), KMDA +3.3% (announces second extension of Strategic Agreement with Baxter (BAX)), ISR +3.1% (still checking), DATE +3% (declared a special one-time cash dividend of $0.4467 per ordinary share, or $0.67 per American Depositary Share), WEX +1.4% (positive commentary on Friday's Mad Money)

Analyst comments: HIMX +2.2% (upgraded to Buy from Hold at Craig Hallum), SAH +1.4% (upgraded to Overweight from Underweight at Morgan Stanley), BIDU +0.7% (upgraded to Buy from Neutral at UBS)

>>> US Gapping down

Gapping down
In reaction to disappointing earnings/guidance: ELGX -2%, FGP -1.4%

Select EU financial related names showing weakness: HSBC -2.1%, NBG -2%, BCS -1.5%, LYG -1.4%, ING -1.3%, DB -1.1%

Select metals/mining stocks trading lower: VALE -3.6%, CLF -2.4%, X -2.1%, RIO -1.8%, BHP -1.5%

Select oil/gas related names showing early weakness: PBR -3.9%, CEO -2.2%, TOT -1%, BP -0.5%.

Other news: NXTD -8.3% (reports Wocket is in production), JNS -1.7% (slight pull back following Friday's 40%+ move higher), OLBK -1.6% (announces plans for branch consolidation), BBRY -1.3% (still checking), TSLA -1.3% (WSJ discusses that many in China are still skeptical regarding TSLA China stations), AAPL -1.2% (several stories out over weekend, may be attributed to news that AAPL may be accused of illegal Irish tax deals)

Analyst comments: EMKR -3.2% (downgraded to Hold from Buy at Needham), AVY -1.2% (downgraded to Neutral from Overweight at JP Morgan), DE -0.5% (target lowered to $95 from $98 at Credit Suisse), DRC -0.5% (downgraded to Neutral from Buy at Guggenheim)

>>> Santander mulls 10% Bankia stake acquisition

Santander mulls 10% Bankia stake acquisition
Santander, the listed Spanish bank, is looking at acquiring a minority stake in Bankia, the nationalised lender controlled by Frob, El Confidencial Digital reported.

Santander’s strategy lies in acquiring a 10% shareholding in Bankia, a stake large enough to give it control of its rival, the report said, citing financial sources. The strategy also envisages the acquisition of minority stakes by a number of investment firms, the report continued.

Frob’s next sell-off of Bankia shares is scheduled for October, the report noted. Frob currently holds a 60.89% stake.


Source El Confidencial Digital

>>> Tibco - To be acquired by Vista Equity Partners for $24/shr in Cash, total d

To be acquired by Vista Equity Partners for $24/shr in Cash, total deal valued $4.3 Billion 

TIBCO Software Inc. (NASDAQ: TIBX), a global leader in infrastructure and business intelligence software, today announced that it has entered into a definitive agreement to be acquired by Vista Equity Partners, a leading private equity firm focused on software, data and technology-enabled businesses. Under the terms of the agreement, TIBCO stockholders will receive $24.00 per share in cash, or a total of approximately $4.3 billion, including the assumption of net debt. The agreement was unanimously approved by TIBCO's board of directors following a thorough review of strategic and financial alternatives conducted by a Special Committee of the Board."The sale of TIBCO to Vista will provide our shareholders with immediate and substantial cash value, as well as a compelling premium, and the Board has unanimously agreed that this transaction is in the best interests of all our stakeholders," said Vivek Ranadiv, Chairman and CEO of TIBCO."Over the course of TIBCO's comprehensive review, the Special Committee and its advisors evaluated a wide variety of strategic and financial alternatives, including a sale of the company," said David West, a member of TIBCO's board and of the Special Committee. "In reviewing the sale alternative, TIBCO engaged in an extensive process involving a large and diverse group of strategic and financial buyers. Ultimately, the Board concluded that the sale alternative was the best alternative, and that Vista's offer to acquire TIBCO is the best way to maximize value for our shareholders.""We strongly believe that this transaction best positions the Company to execute on our vision of providing the right information, at the right time, in the right context to make the world a better place," said Ranadiv. "Additionally, as a private company, TIBCO will have added flexibility to serve our customers and execute on our long-term strategy. We are excited to work with our new partners at Vista and enter our next chapter of growth and industry leadership."

Vista is a leading private equity firm with over $13.5 billion in cumulative capital commitments, focused on investments in software, data and technology-enabled companies. Vista has an extensive track record of successfully completing take-private transactions, including taking five other public companies private in the past three years. The firm helps its companies achieve operational, product and customer service excellence by contributing professional expertise, proven best practices and management techniques."We look forward to working with the talented management team and employees to accelerate TIBCO's growth and strengthen its leadership as a complete fast data platform," said Robert F. Smith, Chairman and CEO of Vista Equity Partners. "We worked hard to make this deal happen because we understand the tremendous value that TIBCO can bring to its customers and the marketplace as a private company. We are incredibly excited to help TIBCO reach its full potential."

Under the terms of the agreement, Vista will acquire all outstanding TIBCO common stock for $24.00 per share in cash. The purchase price represents a 26.3 percent premium to the closing price of TIBCO common stock on September 23, 2014, one day prior to public reports that multiple parties were competing to acquire TIBCO. The total enterprise value of the transaction represents more than 18 times TIBCO's earnings before interest, depreciation and amortization (EBITDA) for the 12 months ending August 31, 2014.

The transaction, which is expected to close in the fourth calendar quarter of 2014, is subject to approval by TIBCO stockholders, regulatory approvals and other customary closing conditions. There are no financing conditions associated with the proposed agreement. JPMorgan Securities LLC and Jefferies Finance LLC have provided committed debt financing to Vista in connection with the transaction.

Goldman, Sachs & Co. is serving as financial advisor, and Wilson Sonsini Goodrich & Rosati, Professional Corporation is serving as legal advisor to TIBCO. BofA Merrill Lynch, Deutsche Bank Securities Inc., Jefferies LLC, JPMorgan Securities LLC and Union Square Advisors LLC are serving as financial advisors, and Kirkland & Ellis LLP is serving as legal advisor to Vista.

>>> US Early premarket gappers

Early premarket gappers
Gapping up: AMBI +86%, EXEL +27.6%, DWA +25.2%, ATHL +24.4%, ALIM +21.7%, RSH +11.1%, PSDV +10.5%, CYTR +6.8%, ECYT +4.9%, LAS +2.3%, KOOL +1.7%, BIDU +1.6%, YHOO +0.8%

Gapping down: NXTD -8.3%, PBR -4.1%, VALE -2.4%, HSBC -2.3%, NBG -2.3%, BBRY -1.9%, RIO -1.7%, BHP -1.5%, BCS -1.5%, LUV -1.2%, DB -1%, TOT -1%, AAPL -0.9%, JNS -0.8%

(Santander) Inditex: Strong August Spanish Apparel Sales

Inditex: Strong August Spanish Apparel Sales

Buy/TP:€25.80/CP:€21.87



Spanish retail sales fell 0.4% nominal/rose 0.4% constant rices in August, seasonal and calendar adjusted, INE data show. This compares with -1.0%/-0.5% respectively in July (YTD average +0.2%/+0.2% vs. July's +0.2%/+0.1%). Excluding service stations, sales fell 0.8% nominal/0.3% constant (vs. July's -0.8%/-0.5%). Within this, food sales fell 0.6% nominal and grew 1% constant (-0.9% and +1% July) taking food YTD growth to 0.2% and 0.4%, vs. 0.3% and 0.3% in July.

Non-food sales were flat nominal/+0.7% constant (down 0.9%/ 0.5% July). Apparel outperformed at +1.8% nominal/+1.9% constant (July +0.3%/+0.5%). In contrast, Home decreased 0.6% current/0.1% constant (July -0.4%/+0.2%), while "Other" (including expenses such as utility bills) fell 0.8% nominal (-0.1% constant). By distribution class, large chain store sales increased 0.4% nominal/0.9% actual, suggesting a reversal of the previous two months' underperformance (July  -2.1%/-1.6%), perhaps thanks to the end of more intense promotional activity at the smaller chain stores and independents over the summer sales period (rebajas).

In terms of the read-across to Inditex, ITX's current trading update (1 Aug to 12 Sept), at its 1H14 results on 17 Sept, showed constant currency sales up 10% (SANe 3.5% LfL vs 4.5% 1H14). We note this period extends beyond the INE data, which is, therefore, somewhat backward looking. That said, incorporated within the +10% CC growth, we estimate that the 1H14 Spain strength (6% LfL) continued, albeit at a slightly more moderate pace given the tougher comp. More broadly, at group level we expect a stronger-than-average August and a slightly weaker-than-average first two weeks of September, as has been the case in many apparel markets, given the warm weather. We note that Inditex's comps ease significantly in the second half of 3Q.

Although there is nothing particularly new to take from this INE update, the continued momentum in Spanish retail sales is encouraging and contributes to our constructive view on ITX (Buy TP EUR25.80/share).

FT : SJP removes Pimco as manager of Multi Asset mandate

St James’s Place (SJP) has removed Pimco as the manager of its £944m SJP Multi Asset fund, changing the mandate so that it is sub-advised by three different management teams.

The SJP Multi Asset fund had been run by Mihir Worah, Curtis Mewbourne and Vineer Bhansali at Pimco since it was launched in 2012.


But as of November 10, the fund will be split into three parts, which will be run separately by Invesco Perpetual, Schroders and US firm Payden & Rygel.

The Invesco portion will be run by its Global Targeted Returns team, led by David Millar, and will consist of a portfolio of between 20 and 30 thematic positions.

Mike Hodgson, head of risk managed investments and structuring at Schroders, will run a separate equity portion of the multi-asset fund, while Scott Weiner, Brian Matthews and Brad Boyd at Payden & Rygel will run a fixed income portion.

The management change is another blow for Pimco, which saw co-founder and chief investment officer Bill Gross leave to join rival Janus Capital last week.

SJP has also closed to new investement the two UK equity income mandates that are sub-advised by Axa Framlington’s George Luckraft and opened a new SJP UK Income mandate to be run by Majedie Asset Management’s Chris Reid.

Mr Reid currently manages the £540m Majedie UK Income fund with Yuri Khodjamirian, as well as co-managing Majedie’s UK Focus and UK Equity funds.

The Majedie UK Income fund is in the top-quartile of the IMA UK Equity Income sector since its launch in December 2011, delivering a 74.5 per cent return compared to the average sector return of 47.8 per cent, according to FE Analytics.