RTR - SocGen, Santander mull tie-up with Germany's Commerzbank-report


(Reuters) - France's Societe Generale and Spain's Santander are mulling a tie-up with Germany's second-largest lender Commerzbank, German magazine Bilanz reported on Thursday.

A delegation from Societe Generale recently met with representatives from the German government to talk about Berlin's 17 percent stake in Commerzbank, the report said, without specifying its sources.

Commerzbank, which was bailed out by the government in the financial crisis and has seen its share price plunge more than 90 percent since 2007, has repeatedly been mentioned in the media as a potential takeover target.

The German government currently has no plans to sell its stake, a finance ministry spokeswoman said.

Commerzbank, Societe Generale and Santander declined to comment.

German magazine Der Spiegel reported last month that the government wants to stay invested in Commerzbank until at least 2016 and that finance minister Wolfgang Schaeuble had already rebuffed several potential suitors.

Other banks mentioned as potential Commerzbank stake buyers - including UniCredit, UBS and BNP Paribas - have said publicly that they were not interested.

The German government has indicated repeatedly that it wants to wait for the Commerzbank share price to recover before it sells its stake.

Chief Executive Martin Blessing said this year that according to some calculations the government could sell its Commerzbank investment without booking a loss if gets a price of 18-19 euros a share.

The shares were up 2.7 percent at 11.72 euros on Thursday at 1218 GMT, outperforming a sector index up 1 percent.

Berlin acquired the Commerzbank stake, which it holds through bank bailout fund Soffin, as part of an 18-billion-euro ($24.5 billion) government bailout in the financial crisis.

>>> Smith & Nephew: Thoughts on recent M&A speculation

Smith & Nephew: Thoughts on recent M&A speculation
Opco notes that MDT & SNN shares were higher yesterday following a Bloomberg article indicating that MDT is evaluating a takeover bid for UK-based orthopedic company SNN. This comes one week after reports that SYK was considering a SNN bid. Firm thinks that an MDT/SNN deal would have fewer potential "dis-synergies" and less scrutiny from anti-trust regulators than SYK/SNN; also, MDT/SNN would provide MDT bundling opportunities with its spine business and more flexibility for future use of MDT's large outside-US cash balance. However, the transaction would not provide obvious significant cost synergies. With SNN trading above the level of the pending ZMH/Biomet deal, the ultimate tax benefits would be key. Firm expects the topic to be discussed at today's MDT Analyst Day in NYC, particularly if MDT does not comment ahead.

>>> US Gapping down

Gapping down
In reaction to disappointing earnings/guidance/SSS: VRA -20.8%, RAD -7.1%, PVH -5.9%, UTIW -1.9%, TRLA -1.7%, SJM -0.7%, A -0.2%.

M&A news: SNN -4% (cont speculation surrounding M&A).

Other news: NVAX -9.1% ( announces $100 mln public offering of common stock), RCAP -6.2% (prices public offering of Class A Common Stock), TSL -3.7% (announced the offering of $150 mln convertible senior notes; commences concurrent offering of 8.8 mln ADSs), DB -1% (fixes subscription price for new shares at EUR 22.50 per share), ILMN -0.9% ( to Offer $900 Million Convertible Senior Notes, SPWR -0.8% (announces intention to Offer $400 mln of Senior Convertible Debentures), .

Analyst comments: Z -1.3% (downgraded to Neutral from Buy at Sun Trust Rbsn Humphrey), KOF -1.3% (downgraded to Neutral from Buy at Goldman)
.

>>> US Gapping up

Gapping up
In reaction to strong earnings/guidance: CIEN +12.7%, AXAS +10.1%, VRNT +8.9%, VRA +6.5%, XNY +4.2%, MIXT +4.1%, JOY +3.7%, FIVE +2.9%, BV +2.9%, ( to divest PowerReviews for $30 mln , RLD +2.6%, NAV +1.2%, .

M&A news: S +3.2% (Bloomberg story that Sprint (S) and T-Mobile (TMUS) are near an agreement on price at $40/share, capital structure, and termination fee in potential deal), TMUS +0.9%.

Select Biotechrelated names showing strength: PRAN +9.4%, CPRX +6.9%, ISIS +4.4%, CYTR +1.6%.

Select CIEN peers trading higher: INFN +4.5%, JDSU +2.4%, JNPR +1.3%.

Other news: NEWL +43.5% (announces granting of temporary restraining order against Ironridge Global IV), HALO +15.6% (Halozyme Therapeutics to resume PEGPH20 clinical program in pancreatic cancer; FDA removes clinical hold on Phase 2 trial (study 202), GBLX +14.2% (provides shareholder update; 'will not be selling our GrowBLOX cultivation chambers to the retail consumer'),AXAS +10.1% (raised FY14 production guidance to 5500-5700 Boepd from 5200-5300 Boepd), SSLT +6.3% (still checking), NQ +3.9% (cont strength), TWTR +2.4% (previously considered buying music related companies such as Pandora (P)/Spotify/Soundcloud, according to FT story out yesterday afternoon; also initiated with Outperform at PacCrest), MDCO +2.4% (ORBACTIVTM Phase 3 trial results published in New England Journal of Medicine), SPR +2.2% (announced public secondary offering of ~8.17 mln shares of Class A common stock by selling stockholder; co to repurchase 4 mln shares), CETV +2.2% (announces the appointment of David Sturgeon as CFO), STO +2% (still checking), ORAN +2% (won a global wide area network and embedded security services contract with Oetiker Group), OLED +1.8% (Board of directors approved $50 mln common stock repurchase program), MNTA +1.5% (receives Orphan Drug Designation for necuparanib in pancreatic cancer), ROK +1.3% (Board approved $1 bln common stock repurchase), SPEX +1.1% (has expanded its operations in Texas through the opening of a new office located in Longview, TX.).

Analyst comments: CLVS +3.2% (upgraded to Buy at Stifel), HCLP +2.5% (initiated with a Buy at Jefferies), RATE +1.9% (upgraded to Outperform at RBC Capital Mkts), VGR +1.7% (initiated with a Outperform at Oppenheimer), CATM +1.4% (initiated with a Outperform at Wells Fargo), NBG +1.1% (upgraded to Buy from Hold at Deutsche Bank), ALLT +1% (poistive commentary at OPCO ),MSFT +0.8% (upgraded to Outperform at FBR Capital)

*** ECB Watch: ECB Cuts Rates Less than Expected. What Else? *** (MS)

*** ECB Watch: ECB Cuts Rates Less than Expected. What Else? ***

For the benefit of everyone, some additional colour
First, on the reduction in marginal lending rate by 35 bp. This is mainly relevant for banks in stress. Only for banks that are stuck emergency liquidity assistance (ELA) which is priced off the marginal lending rate will benefit from the larger cut in the top rate. On Greece and Cyprus still have meaningful amounts of ELA. page 18 of the LDT linked below. Everyone else pays the refi rate or will get charged at the depo rate for depositing money at the ECB. The marginal lending rate also provides the upper limit for EONIA.
Second on the additional info to be released by the ECB at 14.30 Ldn time. The President of the ECB will comment on the considerations underlying these decisions at a press conference starting at 2.30 p.m. CET today. Further monetary policy measures to enhance the functioning of the monetary policy transmission mechanism will be communicated in a press release to be published at 3.30 p.m. CET today. This means that at the end of the press conference, there will be an additional press release detailing these measures. As I said, the devil is in the detail, esp. for credit easing. In my view, the reason they are mentioning this is that they know 10 bp will be at the lower end of what the mkt was looking for.

>>> Allergan: Pershing Square filed proxy materials related to AGN/VRX deal

Allergan: Pershing Square filed proxy materials related to AGN/VRX deal

In the filing, Pershing said they believe the earliest date allowing for shareholders to properly consider the Special Meeting proxy would be one month after the company confirms their solicitation: Aug 7 th -- Sept 1 st. They note the company can delay the Special Meeting up to 120 days, a delay of up to Nov. 4 th - Nov. 28 th.

(BFW) Publicis CEO Levy Says No Plans for Major Acquisitions, Merger

Publicis CEO Levy Says No Plans for Major Acquisitions, Merger
2014-06-05 12:06:54.958 GMT


By Blanche Gatt and Caroline Connan
     June 5 (Bloomberg) -- Publicis “will have to make a few
acquisitions” following collapse of planned merger with
Omnicom, CEO Maurice Levy says in Bloomberg TV interview.
  * Levy says he can’t give any precise details because co. is
    at first step of its strategic plan
    * “For the time being, we don’t plan to make any major
      acquisition or any major merger,” Levy says
  * Omnicom deal fell through due to “difference of corporate
    culture, of corporate identities, maybe of hidden agenda,”
    Levy says, without elaborating further
    * Only issue between cos. was one of “equality,” which
      perhaps doesn’t have “exactly the same meaning” for
      Omnicom as for Publicis, he says
    * If what had been agreed upon in the 1st place had
      “simply” been executed, the deal could have been
      saved, Levy says

EASTERN EUROPE:
  * Current situation in Russia, Ukraine has “very limited
    impact” on the rest of the world, though “obviously”
    affects Ukraine; affects Russia “a little bit”
    * Doesn’t see situation evolving “negatively”
    * “It’s in the interest of everyone to find a negotiated
      solution which will bring Ukraine back its autonomy, its
      independence”
  * It’s “a mistake” that U.S. President Obama and Russian
    President Putin aren’t meeting during their trip to France,
    Levy says
    * “It’s very important to speak to each other. They
      should speak,” he says.

NOTES:
  * May 13: Publicis Could Spend EU4b-EU5b on Deals, Cash
    Return: Exane
  * May 12: Publicis Could Make an Hostile Omnicom Bid And
    Succeed: Natixis


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

To contact the reporters on this story:
Blanche Gatt in London at +44-20-7392-0351 or
bgatt@bloomberg.net;
Caroline Connan in London at +33-1-5365-5043 or
cconnan@bloomberg.net
To contact the editors responsible for this story:
James Ludden at +44-20-7673-2645 or
jludden@bloomberg.net