>>> Lafarge/Holcim divests attract CRH along with private equity

Lafarge/Holcim divests attract CRH along with private equity

Lafarge [EPA:LG] and Holcim's [OTCMKTS:HCMLY] planned divestments to clear the way for their major merger are being eyed by Ireland's CRH [NYSE:CRH] and four private equity consortia, according to a newswire report.

The Reuters item said bids being considered for the assets range from EUR 5bn to EUR 7bn (USD 6.5bn-USD 9bn), citing sources familiar with the matter.

This news service reported earlier this week that in terms of potential bidders, CVC has joined forces with the Singaporean sovereign wealth fund GIC; BC Partners has teamed up with Advent International; and Cinven has teamed with Blackstone and CPPIB.

The newswire reported that CVC's consortium includes three other partners and that a fourth group has formed between Bain, Onex, and one more limited partner.

The Mergermarket Group, publisher of this news service, is a BC Partners portfolio firm.

An information memorandum was due to be released at the start of this week, this news service also reported. Besides disposals in Canada, Mauritius, the Philippines, and Brazil, Holcim's assets in Hungary and Serbia and Lafarge's in Romania are also included.

In western Europe, Lafarge's Mannersdorf cement plant in Austria and its German assets, much of both firms' holdings in France, and the UK's Lafarge Tarmac assets except for possibly one plant will go on the block.

EBITDA for the divisions combined comes to EUR 750m-EUR 850m, sources told this news service.

CRH's new CEO Albert Manifold has said the potential purchase of the Lafarge-Holcim assets would not interfere with the Irish firm's own plans to sell EUR 1.5bn-EUR 2bn worth of assets. There would be little overlap in CRH's sale of smaller subsidiaries and the large cement operations that Lafarge and Holcim are selling, he said. In May, the executive said CRH had EUR 1.5bn in M&A capacity going forward.

Source Newswire Round-up

>>> US After Hours

After Hours Summary: PDEX +20.5%, TIBX -5.4%, RHT -3.2%, ORCL -2.2% following earnings/guidance

After Hours Gainers: Companies trading higher in after hours in reaction to earnings: PDEX +20.5%

Companies trading higher in after hours in reaction to news: GEVO +22.6% (provided Luverne plant update: Side-by-side production remains on track), CNQR +19.7% (to be acquired by SAP for $129 per share), NAVB +9.8% (confirmed it received Orphan Drug Designation from FDA for use of Lymphoseek in head and neck cancers), MCP +5.3% (Oaktree Capital Mgmt disclosed a 9.1% stake in 13G), JBLU +4.4% (announced that Robin Hayes, the company's current President, will succeed Dave Barger as CEO, effective February 16, 2015), SHLD +2.9% (Fairholme Capital Management disclosed 24% active stake in 13D filing), GNC +1.4% (announced Jeffrey Hennion will serve as Executive Vice President, Chief Marketing and eCommerce Officer), AMD +1.0% (co and Synopsys expanded their IP partnership)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings: TIBX -5.4%, RHT -3.2%, ORCL -2.2%

Companies trading lower in after hours in reaction to news: QRHC -13.4% (announced proposed public offering), EROC -4.5% (filed for ~53.34 mln unit offering of common units representing limited partner interests by selling unitholders), CLDT -3.3% (launched public offering of 5 mln common shares), GLUU -2.3% (filed for ~9.98 mln share common stock offering by selling shareholders), BXMT -1.6% (announced public offering of 8 mln shares of class a common stock)

>>> US Close Dow+0,64% S&P+0,49% Nasdaq+0,69% Russel+0,47%

Closing Market Summary: Nasdaq Composite Leads Stocks Higher

The stock market finished the Thursday session on a higher note with the S&P 500 climbing 0.5%. The benchmark index registered an early high within the first 90 minutes and inched to a new session best during the final hour of the action.

Equities rallied out of the gate with the financial sector (+1.1%) providing noteworthy support for the second day in a row. The growth-oriented sector extended its September gain to 1.9% versus a more modest uptick of 0.4% for the S&P 500.

Although financials did some heavy lifting, other influential sectors like health care (+0.8%) and technology (+0.7%) also served up a measure of support. The health care sector settled ahead of the broader market, but the biotech group was a reluctant participant in the advance. The iShares Nasdaq Biotechnology ETF (IBB 275.07, +2.09) added 0.8%.

For its part, technology rallied amid strength in chipmaker stocks. SanDisk (SNDK 103.22, +3.00) and Skyworks (SWKS 57.80, +1.92) led the charge with gains close to 3.0% apiece, while the broader PHLX Semiconductor Index added 1.5% amid upbeat commentary from Topeka Capital Markets.

Elsewhere among influential groups, consumer discretionary (+0.4%) and industrials (+0.4%) lagged in the early going, but finished just behind the broader market. In the discretionary sector, the relative strength of high-growth names like Netflix (NFLX 459.01, +4.48) and Priceline.com (PCLN 1197.20, +23.40) masked the underperformance of homebuilders following today's disappointing Housing Starts/Building Permits report. The iShares Dow Jones US Home Construction ETF (ITB 24.01, -0.12) lost 0.5%.

On the downside, energy (-0.5%) and utilities (-0.7%) finished in the red with the energy sector following the price of crude oil, which slid 1.3% to $93.07. As for the sector, the group narrowed its week-to-date gain to 1.0% and widened its quarterly loss to 4.3%.

Treasuries ended flat after surrendering their overnight gains. The 10-yr yield settled at 2.63%.

Participation was ahead of recent averages with more than 660 million shares changing hands at the NYSE.

Economic data included Initial Claims, Housing Starts/Building Permits, and the Philadelphia Fed Survey:

* The latest Initial Claims report revealed a drop to 280,000 from 316,000, while the consensus expected a more modest decline to 305,000 

* The reading marked its lowest level since July and aptly supports the view that the weak payroll growth seen in August is likely to be revised higher 

* Housing Starts fell to a seasonally adjusted annualized rate of 956,000 units in August from a revised 1.117 million units in July, while the Briefing.com consensus expected a decrease to 1.045 million units 

* Building permits fell to a seasonally adjusted annualized rate of 998,000 versus a revised 1.057 million for July, while the consensus expected permits to come in at 1.054 million 

* The Philadelphia Fed Survey for September fell to 22.5 from 28.0, while economists polled had expected that the Survey would slip to 23.5 

Tomorrow, the Leading Indicators report for August (consensus 0.4%) will be released at 10:00 ET. In addition, investors will be responding to the results of the independence referendum in Scotland.

* Nasdaq Composite +10.0% YTD  * S&P 500 +8.8% YTD  * Dow Jones Industrial Average +4.2% YTD  * Russell 2000 -0.3% YTD

>>> US Gapping Down

Gapping down In reaction to disappointing earnings/guidance: PIR -12.8%, MCHX -10.9%, RAD -7.5%, CLR -1.4%, GDOT -0.7%

Other news: ECTE -4.9% (Therapeutics Platinum seeks return of $5 mln investment in Echo Therapeutics), SNE -4.8% (cont weakness following Japan session (guided downward yest)), AVNR -1.5% (cont volatility after the the large move this week), ENDP -0.8% (pulling back modestly following yesterday's merger annoncement of AUXL), VNET -0.5% (posted its second response to short seller, rejects the baseless allegations)

Analyst comments: DNR -2.1% (downgraded to Sector Perform from Outperform at RBC Capital Mkts)

>>> US Gapping Up

Gapping up In reaction to strong earnings/guidance: PWE +8.1%, ROSG +5.4%, STLD +4.6%, MLHR +3.4%, CAG +2.8%, UNFI +2%, CLC +1.6%

M&A news: SODA +3.1% (story making the rounds suggesting M&A from DEO, KKR or SBMRY), SNN +1.9% (renewed M&A spec post Stryker (SYK) analyst meeting), WWAV +1.8% (acquires So Delicious Dairy Free for ~$195 mln in cash)

Other news: EMKR +45.7% (announces the sale of its Space Photovoltaics Business to Veritas Capital, announces CEO transition plan), BAXS +20% (to explore strategic alternatives for its MIS Spine Business), XXII +18.7% (enters cannabis space; acquires exclusive U.S. license to Cannabinoid Biosynthesis Genes and takes 25% stake in biotechnology company), VVUS +17.8% (Vivus and Auxilium (AUXL) announce FDA approval of STENDRA sNDA), WYY +8.4% (subsidiary iSYS receives task order from U.S. Citizenship and Immigration Services), RSH +8.2% (cont pre-mkt vol), CGEN +4.2% (still checking), GILT +3.3% (still checking), SONS +3.3% (board of directors voted to terminate the co's shareholder rights plan effective Sep 17, 2014), MOBI +3.2% (announces strategic partnership with China Telecom (CHA)), ERIC +3.2% (announced it will discontinue future development of modems and shift parts of resources in modems to radio network R&D ), NETE +3% (CEO Oleg Firer discloses 6.5% stake), STM +1.9% (may be moving with ERIC), A +1.8% (transition of CEO: Mike McMullen to succeed Bill Sullivan in March 2015; creates new group for services and consumables), CY +1.7% (favorable commentary on Wednesday's Mad Money), ISIS +1.7% (favorable commentary on Wednesday's Mad Money), YHOO +1.2% (cont momentum ahead of BABA IPO), X +0.9% (in sympathy with STLD), OVTI +0.8% (Hua Capital Management hired bankers to fund possible OVTI bid, according to reports), INFY +0.6% (announced a global partnerships with Huawei, MSFT, and Hitachi for various products/svcs), AAPL +0.6% (iPhone 6 has received 1 China license, according to reports)

Analyst comments: IOC +4.1% (initiated with a Outperform at Credit Suisse), TKMR +2.4% (positive commentary at Maxim), VNCE +1.6% (initiated with a Buy at B. Riley & Co), KSS +1.3% (upgraded to Buy from Neutral at Citigroup), RYI +1.1% (initiated with a Buy at KeyBanc Capital Mkts), MON +1% (upgraded to Buy at Stifel), MT +0.8% (upgraded to Buy from Neutral at BofA/Merrill), DD +0.7% (upgraded to Overweight from Neutral at JP Morgan), BXP +0.6% (upgraded to Buy at Stifel), BA +0.5% (added to Franchise Pick list at Jefferies)

(Wansquare) The American activist funds are preparing to pounce on Europe

The American activist funds are preparing to pounce on Europe

Until now very busy at home, these loans all investors to get juicy remuneration have decided to "take care" of Europe. Bill Ackman is trying to raise a fund of 3 to 4 billion it will introduce to the Amsterdam Stock Exchange. Others should follow suit in his footsteps.

Bankers are almost all unanimous: M & A have actually perked up and the pace should not falter on the second part of Pannee, including the Old Continent. What rejoice all stakeholders follow close or far this crucial activity for healthy banks but also that investors of all stripes. This success, however, is about to disfavor arrival of new players that will not appeal to everyone: the activist funds.

These are quite numerous in the United States and the most powerful so far did not address Europe, being already occupied with their domestic firms. Their different actions have also been more than juicy as they have, in very many cases achieved successful. It must be said that these financial professionals are very organized and very aware of the grievances they can put forward because they are, essentially, former lawyers.

Among the most prominent at the moment in the United States activist funds, that of Bill Ackman (Pershing Square Capital), but also Third Point Management founded by Daniel Loeb in 1995 and boasts of having issues a return on investment 25% per year since then. Hedge funds which each weigh just over $ 10 billion before leverage and have therefore decided to approach Europe. For proof, Bill Ackman puts the finishing touches to emergence of a fund of 3 to 4 billion it plans to toter at the Amsterdam Stock Exchange. With, although obviously intends to position itself on large files which could be the target of criticism and ask profound changes in governance but also more generous remuneration for shareholders. In Europe, idles Guy Wyser Pratte Knight Vinke and or funds such as Centaurus or Amber Capital personalities have already been talking about them in the past. But the new generation of activists, mouth even influential bankers instead, are more "dangerous" and would be willing & gainer "machines of war".

It must be said that they have recently regulator of huge sums from the other side of the Atlantic (80 billion dollars) and they now want to go IA or their activism could be the most successful . Its EMPHASIZE THE PREFERENCE areas undergoing fragility and had not realized the reforms that are needed. Both France and the Netherlands, Italy and Spain therefore fit neatly into this pattern. Their attacks are also very often feared by the target companies, their officers not being absolutely prepared such a destabilizing action. As we have seen last spring at Nexans.

It remains to know that they will be the targets. One thing is certain: according to information WanSquare, some of these funds have a mandate beyond the bankers to take stakes in companies in the Old Continent. And more particularly in larger companies, given the depth of their portfolios. They should therefore not delay has come forward.

(Wansquare) Les fonds activistes americains s'appretent a fondre sur l'Europe

Les fonds activistes americains s'appretent a fondre sur l'Europe

Jusqu'a present tres occupes chez eux, ces investisseurs prets a tout pour obtenir de juteuses remunerations ont decide de « s'occuper » de l'Europe. Bill Ackman est en train de lever un fonds de 3 a 4 milliards de dollars qu'il va introduire a la Bourse d'Amsterdam. D'autres devraient lui emboiter le pas.

Les banquiers sont quasiment tous unanimes : les M&A ont bel et bien repris des couleurs et leur rythme ne devrait pas faiblir sur la deuxieme partie de Pannee, y compris sur le Vieux Continent. De quoi rejouir toutes les parties prenantes qui suivent de pres ou de loin cette activite cruciale pour la bonne sante des banques mais aussi celle des investisseurs de tous poils. Ce succes est toutefois sur le point defavoriser l'arrivee de nouveaux intervenants qui ne vont pas plaire a tout le monde : les fonds activistes.

Ceux-ci sont assez nombreux aux Etats-Unis et les plus puissants n'avaient jusqu'a present pas aborde l'Europe, etant déjà bien occupes avec leurs entreprises nationales. Leurs differentes actions ont d'ailleurs ete plus que juteuses, puisqu'ils ont, dans de tres nombreux cas, obtenus gain de cause. II faut dire que ces professionnels de la finance sont tres organises et tres au fait des griefs qu'ils peuvent mettre en avant car ce sont, pour l'essentiel, d'anciens avocats.

Parmi les fonds activistes les plus en vue en ce moment aux Etats-Unis, celui de Bill Ackman (Pershing Square Capital), mais aussi Third Point Management fonde par Daniel Loeb en 1995 et qui se flatte d'avoir delivre un retour sur investissement de 25% par an depuis lors. Des hedge funds qui pesent chacun un peu plus de 10 milliards de dollars avant effet de levier et qui ont donc decide d'aborder l'Europe. Pour preuve, Bill Ackman met la touche finale a la levee d'un fonds de 3 a 4 milliards d'euros qu'il envisage de toter a la Bourse d'Amsterdam. Avec, bien evidemment l'intention de se positionner sur de gros dossiers susceptibles d'être la cible de critiques et de demander de profondes modifications de gouvernance mais aussi de plus genereuses remunerations pour les actionnaires. En Europe, des personnalites idles que Guy Wyser Pratte ou Knight Vinke et des fonds tels que Centaurus ou Amber Capital ont déjà fait parler d'eux par le passe. Mais la nouvelle generation d'activistes, de la bouche meme de banquiers influents de la place, sont bien plus « dangereux » et seraient prets a &gainer des « machines de guerre ».

II faut dire qu'ils ont recemment leve d'enormes sommes de l'autre cote de l'Atlantique (environ 80 milliards de dollars) et qu'ils ont aujourd'hui envie d'aller IA ou leur activisme pourrait etre le plus fructueux. Its privilegient des zones en phase de fragilite et n'ayant pas realise les reformes qui s'imposent. La France comme les Pays-Bas, l'Italie ou l'Espagne entrent donc parfaitement dans ce schema. Leurs attaques sont d'ailleurs tres souvent redoutees par les societes cibles, leurs dirigeants n'etant absolument pas prepares a ce type d'action destabilisante. Comme on a pu le voir au printemps dernier chez Nexans.

Reste a savoir qu'elles seront ces cibles. Une chose est sure : selon les informations de WanSquare, certains de ces fonds ont dela mandate des banquiers pour prendre des participations dans des entreprises du Vieux Continent. Et plus particulierement dans des entreprises de grande taille, vue la profondeur de leurs portefeuilles. Ils ne devraient donc pas tarder a se manifester.

>>> Brokers Upgrades & Downgrades - 18th of Sept 2014

>>> Up
*ALLIANZ RATED NEW BUY AT UBS, PT EU153
*HELLENIC PETROLEUM RAISED TO BUY VS NEUTRAL AT UBS
*NESTE OIL RAISED TO BUY VS NEUTRAL AT UBS
*PADDY POWER RAISED TO OUTPERFORM VS NEUTRAL AT CREDIT SUISSE
*PREMIER FARNELL CUT TO SELL VS BUY AT CITI
*RANDSTAD RAISED TO NEUTRAL VS SELL AT CITI
*STADA RAISED TO HOLD AT JEFFERIES
*TUI TRAVEL RAISED TO OVERWEIGHT AT MORGAN STANLEY

>>> Down
*ERICSSON CUT TO HOLD VS BUY AT LIBERUM
*HEIDELBERCEMENT CUT TO SELL FROM NEUTRAL AT UBS
*INDITEX CUT TO MARKET PERFORM VS OUTPERFORM AT RAYMOND JAMES
*INDITEX CUT TO HOLD VS BUY AT DEUTSCHE BANK
*JAZZTEL CUT TO HOLD VS BUY AT BERENBERG
*LUFTHANSA CUT FROM OVERWEIGHT TO NEUTRAL AT HSBC
*MOBILE TELESYSTEMS CUT TO NEUTRAL VS OVERWEIGHT AT JPMORGAN
*SIEMENS CUT TO NEUTRAL VS OUTPERFORM AT EXANE
*TELEFONICA DEUTSCHLAND CUT TO NEUTRAL FROM BUY AT GOLDMAN
*WIENERBERGER CUT TO NEUTRAL VS BUY AT UBS

>>> PT Changes
*MEDIOBANCA PT RAISED TO EU7 VS EU6.5 AT NOMURA; KEPT AT NEUTRAL
*POP. EMILIA PT CUT TO EU6.8 VS EU7.1 AT SOCGEN; KEPT AT HOLD

>>> Initiation
*ALLIANZ RATED NEW BUY AT UBS, PT EU153
*AUTOLIV RATED NEW NEUTRAL AT CREDIT SUISSE, PT $112
*BANCO POPOLARE RATED NEW UNDERWEIGHT AT BARCLAYS, PT EU10.4
*ELRINGKLINGER RATED NEW UNDERPERFORM, PT EU25.1: CREDIT SUISSE
*FACC AG RATED NEW OVERWEIGHT AT JPMORGAN, PT EU10,5
*FAURECIA RATED NEW OUTPERFORM AT CREDIT SUISSE, PT EU36
*LEONI RATED NEW NEUTRAL AT CREDIT SUISSE, PT EU52.9
*MONTE PASCHI RATED NEW UNDERWEIGHT AT BARCLAYS, PT EU0.9
*POPOLARE MILANO RATED NEW EQUALWEIGHT AT BARCLAYS, PT EU0.7
*PEUGEOT RATED NEW HOLD AT BERENBERG; PT EU11
*RENAULT RATED NEW BUY AT BERENBERG; PT EU70
*RHEINMETALL RATED NEW UNDERPERFORM AT CREDIT SUISSE, PT EU45.1
*UBI BANCA RATED NEW OVERWEIGHT AT BARCLAYS, PT EU8.1
*VALEO RATED NEW OUTPERFORM AT CREDIT SUISSE, PT EU119

>>> Call
>> Stock
*ALLIANZ ADDED TO EUROPEAN KEY CALLS AT UBS
*AVIVA ADDED TO UBS LEAST PREFERRED LIST, ADMIRAL REMOVED
*CONTINENTAL ADDED TO EUROPE, GLOBAL FOCUS LIST AT CREDIT SUISSE
*DIRECT LINE REMOVED FROM UBS MOST PREFERRED LIST
*TUI TRAVEL ADDED TO EUROPE BEST IDEAS AT MORGAN STANLEY