(BFW) TNT Rises; Takeover Speculation May Be Renewed: KeplerCheuvreux

TNT Rises; Takeover Speculation May Be Renewed: KeplerCheuvreux
2014-06-04 07:56:36.354 GMT


By Brian Lysaght
     June 4 (Bloomberg) -- TNT rises as much as 3.5%, most in
three weeks. Vol. 44% of 3-mo. daily avg.
  * KeplerCheuvreux raises to buy from hold, PT raised to EU7.5
    (17% upside) from EU7
  * Sees recovery underway, Ebit doubling in 2016 vs 2013
  * UPS legal appeal has “good chance” of overturning EU
    decision blocking TNT takeover; positive decision for UPS
    would renew TNT M&A speculation
  * Other parcel cos. in addition to UPS may be interested
  * Appeal may take 1-2 years
  * TNT recent share weakness partly due to PostNL 15% stake
    overhang, blocking period ends early June: KeplerCheuvreux
  * NOTE: 10 buys, 7 holds, 11 sells; avg PT EU7, implies ~7%
    upside: Bloomberg data
  * See April 2013: UPS Appeals EU’s Rejection of $6.7b TNT Bid
    * April 28: TNT 1Q Adjusted Rev EU1.67b vs EU1.72b Y/y







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To contact the reporter on this story:
Brian Lysaght in London at +44-20-7330-7908 or
blysaght@bloomberg.net
To contact the editors responsible for this story:
James Ludden at +44-20-7673-2645 or
jludden@bloomberg.net
Gaurav Panchal

>>> Det Norske Oljeselskap seen as a candidate for takeover

Det Norske Oljeselskap seen as a candidate for takeover 

Det Norske Oljeselskap, the listed Norwegian oil company, is seen as a candidate for takeover, according to Dagens Naeringsliv. The Norwegian business daily cited an analysis by Arctic Securities which stated that Det Norske is trading at a P/E for 2015 of seven compared to its larger peer who are trading at a P/E of 12-13, making Det Norske an interesting takeover candidate.

The paper reported that Norwegian oil giant Statoil is trading at a P/E of around 12 which is beneficial if Statoil wanted to use its shares as a method of payment. The paper also pointed out that Statoil is likely interested in Det Norske’s 20% stake in the two Johan Sverdrup oil field licences which Statoil operates. The paper also noted however that Det Norske is controlled by Aker which is in turn controlled by the Norwegian businessman, Kjell Inge Rokke, who would never sell at a multiple as low as seven.

Det Norske announced earlier this week that it has agreed to acquire Marathon Oil Norway for USD 2.7bn.


Source Dagens Naeringsliv

>>> Tullett Prebon gains on takeover speculation as CEO reveals exit plan

Tullett Prebon gains on takeover speculation as CEO reveals exit plan 

Shares in Tullett Prebon rose yesterday, 3 June, amid speculation of a possible takeover, The Daily Telegraph reported. The market report said demand for the London-listed interdealer broker’s stock is believed to have been boosted by bid chatter.

The report noted that a Shore Capital analyst suggested that Terry Smith’s newly revealed plan to step down as Tullett Prebon chief executive may result in vulnerability to predators seeking to consolidate the sector.

Tullett Prebon has a market capitalisation just short of GBP 662m (EUR 813m). Its shares were trading at 304p by end of play yesterday, 3 June, up 13.8p.


Source Daily Telegraph,

>>> Tibco - 16% After Hours Yesterday on poor guidance

TIBCO Software provides Q2 EPS and revenue guidance below consensus (20.79 -0.22)
TIBX provides downside guidance for Q2, sees Non-GAAP EPS of $0.12-$0.13 vs. $0.21 CapIQ Consensus, sees revenue of $250-$252 mln vs. $267.5 mln consensus. License revenue is expected to be in the range of $75 to $76 million.

Co states, "After a solid first quarter, revenue fell short of expectations in the second quarter, primarily due to lower-than-expected sales of Spotfire. We again experienced growth this quarter in our core infrastructure and event processing product revenue, but Spotfire sales were less than anticipated. We have several changes under way that we believe will improve Spotfire performance. We also acquired Jaspersoft this quarter, and while not a meaningful contributor to second quarter revenue, it represents an important addition to our analytics strategy going forward," said Ranadivé."

Les Echos : Free to invest in Fiber with Orange in exchange of Mobile Network

Link to artcile in french {http://bit.ly/1p5MarL}

Free Bercy grows to invest in fiber with Orange

The acquisition of Bouygues Telecom Orange is the key.
Free accelerate the exchange of a fiber network.
Plans of the cathedral are already drawn. To provide a beautiful fiber optic network to French, Bercy expected a bold building. According to our information, the keystone is the marriage between Orange and Bouygues Telecom, a continuing study seriously the two groups, even if all options are open and if the project leaders involved multiply oratorical.
The objective of this intellectual construction is to accelerate the deployment of very high speed, to fill the presidential goal to cover the entire population by 2022, 80% in fiber to the home (FTTH ). If the lack of financial resources is a nagging concern is the merger SFR-Numericable who alerted the government. Orange and SFR were co-invest in so-called "moderately dense" areas, those that can be profitable provided it does not duplicate infrastructure. SFR but preferred to concentrate its efforts on marketing its new cable network. And Orange has announced that it would mark the panties, investing heavily ... in the same place. 6 or 7 million people in the part of the medium density areas where there is no cable so may wait a very long high speed. It is to avoid this nightmare scenario that Bercy devises an alternative project.
First phase of the plan: the incumbent would buy number three and Bouygues ascend to the Orange capital, possibly by buying shares on the market to hold a controlling interest.
Second step, resell Orange mobile network Bouygues Telecom and some of its frequencies Free Mobile. As mounting imagined in the failed marriage between Bouygues Telecom and SFR, this would both make some money back into the coffers and make the operation more presentable concentration with the competition watchdog. While the transaction amounted to € 1.8 billion as part of the operation SFR, Orange tries, according to our information, to negotiate a $ 2.2 to 2.3 billion euros, of which approximately 1.5 billion for the network and 800 million for the frequencies.
Free could make a financial effort, because it would be the ideal configuration. The fourth mobile operator is poor frequency and complains technical constraints that hinder deployments. It recover all of a sudden a comprehensive network for an amount that is reasonable. And this without endangering its low cost structure - the operator had not wanted to take the Bouygues network technicians in the previous agreement.
Bold fixtures
Xavier Niel group could also buy Bouygues Telecom Orange entirely up but he would destroy thousands of jobs and thus alienating the government to keep its agility. Crowning the building, Free would commit to co-invest in FTTH alongside Orange. According to information that has not been confirmed by the two operators, Free would be willing to contract to spend 300 million euros over five years. 1.5 billion in total, the cost for the mobile network Bouygues.
This association could also take the form of a joint venture. The project called "Poppy" of joint venture between Orange and the Caisse des Dépôts is not dead, it just reappears in another form: a coalition including Orange, Free, Caisse des Dépôts, even investment funds private which would deploy in the unwired area and whose power combined strike would convert some of the unprofitable zone profitable area. We can not tax the architect reluctance State ...

WSJ : FAA Weighs Letting Film, TV Industry Use Drones

FAA Weighs Letting Film, TV Industry Use Drones
Regulators Consider Approving Drone Use for Some Companies, Signaling End of Legal Logjam

Federal regulators are considering exempting seven companies working for the film and television industry from current prohibitions against commercial uses of drone aircraft in U.S. skies.

Monday's announcement by the Federal Aviation Administration doesn't immediately end those restrictions. But it signals that the agency, after months of controversy and pressure from drone proponents to allow some limited commercial flights, is looking to end the legal logjam by authorizing some independent cinematography companies and individuals to use drones.

If the administrative exemptions are granted, such photo and video applications would have for the first time explicit FAA approval under specific conditions. The decision could open the door to other industry-by-industry exemptions—something drone manufacturers and users have been advocating for some time.

The FAA's move is likely to be welcomed by companies itching to start flying commercial drones for a wide range of business applications.

Some drone operators and others say they have been flying drones for various video and photo uses despite the FAA's ban, and that the FAA's stretched enforcement arm hasn't tried to shut them down. Drones also have been used for a number of other applications, including agriculture, because agency officials generally haven't initiated enforcement actions.

The exemptions presumably would go into effect before the FAA finishes its current effort to formulate comprehensive rules for such small drones, or unmanned aerial systems, operating at low altitudes and weighing less than 55 pounds.

Proposed rules for small drones are expected to be issued by the end of the year, though they aren't likely to become final until 2015 or later.

At the same time, the FAA continues work on drafting rules to integrate larger drones into U.S. airspace. Those proposals, however, are bound to be more complex and won't be issued until later.

In its announcement, the FAA cited the "tangible economic benefits as the agency begins to address the demand for commercial [drone] operations." But the agency said all "associated safety issues must be carefully considered to make sure any hazards are appropriately mitigated" before the FAA gives the green light.

The FAA said the Motion Picture Association of America "facilitated the exemption requests on behalf of their membership."
The firms want exemptions for operational rules, pilot-training requirements and maintenance mandates. They also want to be exempted from federal design requirements covering the unmanned vehicles.

Seven companies, which aren't generally known outside the motion picture industry, filed identical requests prepared by the same law firm and lawyer. They envision using "small, unmanned and relatively inexpensive" drones "under controlled conditions" in limited airspace off-limits to others. The filings also indicate anticipated safeguards including use of a pilot and an observer; flights remaining under 200 feet altitude and lasting for less than 30 minutes; and onboard backup systems to ensure that drones can land safely if they lose communication or navigation signals.

The Motion Picture Association released a statement praising the FAA for considering approval of unmanned systems that offer "an innovative and safer option for filming" than manned aircraft.

In addition to companies engaged in film production, the FAA said three other industries are considering asking for exemptions. They include some agricultural uses; aerial inspections of power lines and pipelines; and inspections of certain stacks at oil and gas facilities.

Law-enforcement agencies and other public users of drones already can rely on procedures to obtain FAA approval to fly some of the largest models in designated airspace.

FT : Internet access costs set to sap digital content spending

Internet access costs set to sap digital content spending

Consumers’ willingness to pay for digital content is in danger of being held back by their rising spending on internet access, according to a new forecast that raises questions about the media industry’s hopes for streaming music and video subscriptions.
The report from consultancy PwC, to be released on Wednesday, estimates the total size of the industry will grow to $2.15tn by 2018. But the fortunes of the market’s three segments will vary, with internet access revenues growing faster than both consumer spending and advertising.

That suggests internet providers such as Time Warner Cable and AT&T will be poised to capture a growing share of industry revenue. Streaming services such as Netflix and Spotify , the latter of which had Macklemore & Ryan Lewis as its most popular music artists last year, will also be well-positioned to lead growth in consumer spending, as they capture subscribers willing to pay for round-the-clock access to movies, television shows and music.
However, while consumer spending will still make up the largest portion of industry revenue, the balance is shifting as the cost of internet access itself may be sapping willingness to pay for digital content.
By 2018 PwC predicts consumer spending will slip from 45 to 41 per cent of total industry revenues and advertising will fall from 30 to 29 per cent as outlays on internet access rise from 25 to 30 per cent, driven in large part by mobile use.
“A concern for content providers is that spending on internet access may be taking share away from spending on content and services,” PwC said.
Internet access will drive more consumer spending than any other product or service over the next half-decade, PwC said, growing to $636bn by 2018. The trend has been one factor behind a recent dealmaking wave in the cable and telecommunications sectors from Europe to the US. Consumer revenue is expected to reach $875bn and advertising is forecast to grow to $640bn in the same period.
Digital content, which is generally cheaper than traditional books, music, video games and news, is forecast to rise to 17 per cent of consumer spending excluding internet access in 2018 from 10 per cent in 2013.
That contrasts with a faster migration to digital advertising. A third of ad revenue is expected to come from digital in five years, compared with 14 per cent in 2009 and 25 per cent in 2013, as the industry shifts its focus to digital marketing efforts to reach a more precisely targeted audience.
The divergence highlights what PwC calls a “huge challenge” for companies wishing to monetise consumers’ digital appetites and suggests the industry will still rely heavily on advertising and business-to-business spending.
“The irony is that, ultimately, we’ve never consumed so much and paid so little,” said Marcel Fenez, PwC global leader for entertainment and media.
Global music revenues
Overall, PwC forecasts the global media and entertainment industry will grow at a 5 per cent compound annual growth rate from $1.69tn in 2013 to $2.15tn in 2018. That is down from the 5.6 per cent five-year compound rate the consultancy predicted last year and only slightly above last year’s 4.9 per cent annual rise.
Total digital spending will grow at a 12.2 per cent compound rate over that same period, and will account for 65 per cent of revenue growth.
The success of subscription-based models like Netflix and Spotify is evident in PwC’s prediction that streaming video and music will be two of the fastest-growing consumer segments over the next half-decade, with compound growth rates of 28.1 and 13.4 per cent, respectively. By contrast, digital music downloads are set to grow just 3.3 per cent.
But Mr Fenez said that in order to capture a greater share of digital spending, companies need to adopt more “flexible” business models.
“What people pay for are differentiated experiences. If people are only interested in the basic [content], inevitably they will find it somewhere free,” he said. “It’s not just the convenience of content, it’s the convenience of payment.”
Some may prefer to pay a fixed monthly subscription each month while others would rather pay on a per-item basis, so companies should “offer more choices and better experiences”.
Emerging market consumers are predicted to contribute the fastest growth in the next five years. China, Brazil, Russia, India, Mexico, South Africa, Turkey, Argentina and Indonesia together will account for 21.7 per cent of global revenue in 2018, up from 12.4 per cent in 2009.
China’s clout in particular will be felt as it eclipses Japan as the world’s second-largest entertainment and media market, behind the US, with revenues of $213bn in 2018.

(BFW) Italy Mkt Has ‘Now or Never’ Chance This Year: Kepler Cheuvreux

Italy Mkt Has ‘Now or Never’ Chance This Year: Kepler Cheuvreux
2014-06-04 06:32:41.220 GMT


By Francesca Cinelli
     June 4 (Bloomberg) -- Italy has greatest recovery potential
in terms of productivity, profitability of capital of any of
large European economies, Kepler Cheuvreux says.
  * Highlights Italian equity mkt suffered most prolonged
    valuation derating of its modern history from 2000-01
    through to 2012-13
  * Says 2013 marked end of chronic underperformance of Italian
    mkt in Europe
  * Says potential for recovery in corporate profitability could
    be sustained over next 3-4 yrs
  * Says Italy biggest winner within Europe from decline in cost
    of public debt
    * Says cost of debt servicing in Italy could fall by as
      much as 2pp of GDP over next 5 yrs if ylds of govt debt
      recorded since start of yr hold
  * 5 preferred cos. remain (in order of mkt cap) Atlantia,
    Telecom Italia, Enel Green Power, Gtech, Finmeccanica

Link to Company News:{ENEL IM <Equity> CN <GO>}
Link to Company News:{ATL IM <Equity> CN <GO>}
Link to Company News:{TIT IM <Equity> CN <GO>}
Link to Company News:{EGPW IM <Equity> CN <GO>}
Link to Company News:{GTK IM <Equity> CN <GO>}
Link to Company News:{FNC IM <Equity> CN <GO>}

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fcinelli@bloomberg.net

>>> Sinclair IS Pharma rumoured to have received ‘friendly’ approach from Nestle

Sinclair IS Pharma rumoured to have received ‘friendly’ approach from Nestle 

Sinclair IS Pharma, the London-based healthcare company, is believed to have received a “friendly” takeover approach from Switzerland-based food group Nestle, The Daily Mail reported. The market report said Sinclair, which has discovered an anti-ageing treatment to compete with Botox, would be a good fit for Nestle, after the Swiss group recently acquired North American rights to commercialise a number of Valeant Pharmaceuticals’ aesthetic dermatology products.

The report said Sinclair’s recent low share price has put the company onto the radar of cash-rich prospective buyers, and the business has been eyed by private-equity firms for some time.

AIM-listed Sinclair has a GBP 144m (EUR 177m) market cap.

Source Daily Mail