Wash.Post : Appointment of deputy heir to throne stirs controversy in Saudi Arab

RIYADH, Saudi Arabia — When Saudi Arabia’s elderly king took the unusual step of naming a deputy heir, the move initially was welcomed as a sign of continuity in a country that soon will confront major questions over the future of its leadership.
But in subsequent weeks, the announcement has stirred a rare outburst of dissent, revealing previously unacknowledged strains within the royal family and casting into doubt prospects for a smooth transition from King Abdullah’s rule.

The king’s youngest brother, Muqrin, who was named deputy crown prince on the eve of President Obama’s visit in March, appears to be popular among ordinary people, who say he is not corrupt. He also is well-regarded by foreign diplomats, who describe him as likable and smart.

But behind closed doors, royal tongues have been wagging about the manner in which Muqrin was chosen, the validity of his newly created title and his pedigree as the son of a Yemeni concubine who was never formally married to his father.

“He is not a real prince; his mother was a slave and there are other brothers who are more competent,” said a former Saudi official who spoke on the condition of anonymity because criticizing the royal family is imprudent. “Nobody believes Muqrin can become king.”

Some of the dismay has found a public airing on Twitter, which is better known in the Middle East for its role in fomenting social unrest but here also has found a niche as an outlet for disgruntled royals.

“He was picked for this post because he is easily used,” tweeted an account known as @mutjahidd, which has 1.4 million followers and is thought to belong to a palace insider because its information often is accurate.

The griping may merely reflect sour grapes among those left out in a looming transfer of power, or perhaps just the increased opportunities afforded by social media for tensions to come to light.

It has become clear, however, that Muqrin’s elevation is unpopular in at least some quarters, foreshadowing the strife that many fear will erupt as the older generation of the royal family passes away.

The controversy goes to the core of what is perhaps the biggest question hanging over the future stability of this family-run, oil-rich country, which does not have a clearly defined succession process in place.

The founder of the Saudi state, King Abdul Aziz ibn Saud, decreed only that his first son would inherit the throne, and over the subsequent six decades the succession passed from brother to brother roughly in order of their age. Soon, however, the last of the current line of brothers (of which there were at least 35) will die, necessitating a transfer of power to the brothers’ sons — the third generation of the family.

Given that there are scores of princes in that category, the potential for discord is high. Whoever inherits the throne is likely to anoint his own brothers as future heirs, thereby cutting out multiple cousins from access to the throne and the patronage it provides.

In light of Saudi Arabia’s strategic significance as the world’s biggest supplier of oil and a close ally of the United States, the succession dispute is of “considerable concern,” said Simon Henderson of the Washington Institute for Near East Policy.

“The identity and character of the future king is not known, and the circumstances under which he becomes king are likely to be contentious,” he said. “That introduces instability to Saudi Arabia.”

The issue also is growing in urgency as Abdullah enters his 90s. He breathed with the help of a respirator throughout his two-hour meeting with Obama in March, and he makes frequent visits to hospitals in the United States. His immediate successor, Crown Prince Salman, is hardly in better shape.

And so the choice of Muqrin, a British-educated fighter pilot who has close ties to the United States, had at least some logic. A relatively youthful 69, he could be king for years, deferring the tricky question of how to transition to the next generation. In light of the poor health of Salman, who is said to be suffering a form of dementia, it would seem to make sense to have an heir in reserve.

But designating a successor is traditionally the prerogative of the reigning monarch, and the job of deputy has never existed before. Moreover, the naming of Muqrin skipped over at least two other brothers, upsetting the unspoken rule that the succession passes down according to age.

“What happened was against Islam and against the whole history of Saudi Arabia. There is no such thing as a deputy crown prince,” said the former Saudi official, who supports Ahmed, one of the older brothers, and hopes that Salman will revoke Muqrin’s appointment should he become king.

Theories abound as to why Abdullah made the move — all of them, like most of what transpires in this opaque and secretive kingdom, entirely speculative.

One, widely disseminated on Twitter, holds that Abdullah is seeking to secure the future of his own sons once the succession passes to the next generation. Muqrin, who lacks important tribal connections or an influential position, will be beholden, the theory goes, to Abdullah’s sons, notably his favorite, Mithab, who heads the national guard.

Another theory blames the powerful head of the royal court, Khaled Tuwairji, who is accused of duping the frail Abdullah into appointing Muqrin in return for a promise that he will keep his job after Abdullah dies.

“The sinister acts and destructive tendencies of this person are the cause,” tweeted Saud bin Saif al-Nasser, a prince whose father was passed over.

Western diplomats in Riyadh say the king may simply have been trying to secure the future of the monarchy but instead has exposed its vulnerabilities.


“Muqrin will potentially be the weakest king in Saudi history,“ said one, who spoke on the condition of anonymity because the subject is sensitive. “He is not from the first ranks of the royal family, he has no constituency and he will have to ride herd on a lot of powerful princes.

>>> SAP could eye Tibco takeover --> dealreporter is reporting it too

SAP could eye Tibco takeover 

SAP, the German software group, is interested in acquiring Californian rival Tibco, Der Aktionaer suggested. The German magazine pointed out that SAP only recently said that it may consider expanding its cloud computing operations via acquisitions and claimed that Tibco is likely to be one of the top potential targets. The report claimed that it would be the perfect time to make a move on Tibco, especially as the company recently failed to meet the high growth demands of the market.

Unidentified sector experts told Der Aktionaer that SAP is not likely to be deterred by the fact that a takeover of Tibco would cost more than USD 4bn. The German group has spent billions on deals in the past.

The article noted that SAP reportedly showed an interest in Tibco as early as 2009, but that Tibco made clear it was not interested in a deal. The report speculated that Tibco may be more willing to listen to offers now.


Source Der Aktionaer

(BFW) Airbus Group Faces Several Challenges on Free Cash Flow...

Airbus Group Faces Several Challenges on Free Cash Flow
2014-05-27 13:02:05.839 GMT


By Andrea Rothman
     May 27 (Bloomberg) -- Airbus CEO Enders sees significant
free cash flow only after 2015.
  * Co. confirms 7%-8% return on sales in 2015
  * Airbus in ‘red hot phase’ on A350 as production ramps up
  * Airbus A350 first delivery planned toward year-end, co.
    targets certification 3Q
  * Airbus group restructuring to start implementation by 2H
  * Airbus restructuring in military well under way: Enders
  * Airbus A320neo is ‘on track’
  * Airbus Group CEO Tom Enders speaks at shareholder meeting




Link to Company News:{AIR US <Equity> CN <GO>}
Link to Company News:{AIR FP <Equity> CN <GO>}

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

To contact the reporter on this story:
Andrea Rothman in Toulouse at +33-5-6365-7668 or
aerothman@bloomberg.net

To contact the editor responsible for this story:
Brian Lysaght at +44-20-7330-7908 or
blysaght@bloomberg.net

>>> US Gapping down

Gapping down
In reaction to disappointing earnings/guidance: JKS -9.1%, FRO -8%.

M&A news: PF -6.1% (still checking), AZN -1.7% (Pfizer issues statement regarding AstraZeneca (AZN); does not intend to make an offer for AstraZeneca, also downgraded to Sell from Hold at Societe Generale).

Select metals/mining stocks trading lower: GFI -3.3%, AU -3.1%, AU -3.1%, SLV -1.7%, GDX -1.4%, HMY -1.3%, GLD -1.2%, ABX -1.2%, AG -1.2%, SLW -1%, HL -1%, .

Select solar names showing early weakness in sympathy with JKS: CSIQ -2.8%, TSL -2.4%, YGE -1.5%.

Other news: DRTX -8.8% (confirms FDA approval of Dalvance, inititially traded higher, and sold off pre-mkt), BIOD -5.4% (discloses CFO resigned), CVM -3.8% (files for $75 mln mixed securities shelf offering), YY -1% (rumors of site clean-up operation by government, co denies rumors), .

Analyst comments: NTLS -2.1% (downgraded to Hold from Buy at Jefferies), SPLS -0.9% (downgraded to Sell from Neutral at Goldman).

>>> US Gapping up

Gapping up
In reaction to strong earnings/guidance: MOBI +1.6%, BNS +0.7%.

M&A news: HSH +21.8% and PPC +3.2%(Pilgrim's Pride makes alternative offer to buy HSH; offers $45.00 per share in cash as alternative to HSH pending acquisition of PF), PFE +0.5% (Pfizer issues statement regarding AstraZeneca (AZN); does not intend to make an offer for AstraZeneca).

Select EU financial related names showing strength: NBG +3.1%, SAN +1.9%, CS +1.8% (upgraded to Buy from Hold at Deutsche Bank), DB +1.6%, BBVA +1.3%.

Select Utility stocks trading higher on reports of PJM capacity market secures new and diverse resources to meet future electricity demand: FE +3.7%, AES +2.8%, DUK +1.7%, PPL +1.3%, EXC +0.9%, NEE +0.5%, D +0.4%.

Other news: BCRX +23.1% (announces positive results from OPuS-1, a Phase 2 trial of BCX4161 for the prophylactic treatment of hereditary angioedema), NVGN +16% (announces milestone with its super-benzopyran (SBP) drug program), ARO +9.1% (closes strategic partnership deal/$150 min financing transaction with Sycamore Partners, announces two new Baord members), NADL+8.8% and SDRL +2.4% (announce investment and co-operation agreement with Rosneft to partner in Russian market ), SPEX +7.9% (attributed to positive blog mention on Friday, cont strength), INO +7% (reports breakthrough DNA-Based monoclonal antibody therapy completely protects animals from lethal viral challenge; unit sells animal health assets), SPPI +6.5% (mentioned positively on blog), ONVO +5.6% (disclosed 3D kidney tissue bioprinting activity update), TI +5.5% (potentially related to stong EU mkts), VRNG +5.5% (may be attributed to positive blog mention), ADXS +4.3% (co's HER2 immunotherapy candidate receives Orphan Drug Designation for treatment of osteosarcoma), STM +4.3% (positive Barrons mention), KNDI +4.1% (may be attributed to reports that China plans to remove millions of cars off road to ease pollution problem), BKS +3.9% (positive Barron's mention), ARMH +2.5% (strong EU mkts), ALLT +2.3% (receives a $5 mln order from a Tier-1 mobile operator for the Allot Service Gateway Tera), EMKR +2% (announces settlement and license agreement relating to patent infringement lawsuit brought by Nichia), BAC +2% (discloses it resubmitted its requested capital actions and certain 2014 CCAR to the Fed), INCY +1.9% (Co and and Bristol-Myers Squibb (BMY) enter clinical collaboration agreement to evaluate combination regimen of two novel immunotherapies), FEYE +1.8% (Analysis Platforms certified by North Atlantic Treaty Organization to handle information classified as NATO SECRET).

Analyst comments: ODP +5.4% (upgraded to Buy from Neutral at Goldman), EXXI +3.6% (initiated with an Outperform at BMO Capital Mkts), FRSH +2.9% (initiated by several analysts), SPLK +2.3% (upgraded to Outperform from Market Perform at Northland Capital), PANW +1.8% (upgraded to Buy from Neutral at Nomura), KORS +1.7% (target raised to $108 from $100 at Wedbush, CSCO+1.6% (upgraded to Buy from Hold at Deutsche Bank), WRE +1.2% (upgraded to Outperform at Robert W. Baird)

(NY Post) Rachesky’s game puts satellite company sale in jeopardy

Rachesky’s game puts satellite company sale in jeopardy

Hedge-fund manager Mark Rachesky is playing another game of “The Price is Right,” the Loral edition.
Rachesky’s MHR Fund Management, which owns a controlling stake in Loral Space & Communications, put the New York satellite company on the block in January.
The former Carl Icahn protégé is said to be seeking between $80 and $90 a share for Loral — well above Friday’s closing price of $70.94. The stock is down from a high of $82.13 after The Post first broke news of the auction.
The Ontario Teachers’ Pension Plan has been the lone bidder for Loral since late March and has reduced its offer price since gaining exclusivity, a source said.
The sale of Loral is really about gaining control of its sole asset: a 62.8 percent stake in Canadian satellite company Telesat.
Loral and the other Telesat shareholder, Canada’s Public Sector Pension Investment Board, have been exploring the joint sale of Telesat — which at Rachesky’s asking price would be worth more than $7 billion. PSP is planning to sell only part of its stake in Telesat.
The three parties — Rachesky, OTTP and PSP — need to come together in the next few weeks or the sales process will likely fall apart, sources said.
Rachesky appears comfortable waiting it out, in part because of Telesat’s latest strong earnings report. Revenue rose 7 percent in the quarter, while earnings before interest, taxes, depreciation and amortization, or Ebitda, jumped 13 percent.
However, he might be playing a risky game, as OTTP also has some leverage as the only bidder, one source said.
MHR declined comment and OTTP did not return calls.

(RTR) Siemens readying Alstom offer, trims cash component - sources

Siemens readying Alstom offer, trims cash component - sources {http://reut.rs/1opgj7q}

May 26 (Reuters) - Siemens is readying a formal offer for Alstom under which it would transfer its rail activities and less than 7 billion euros in cash to its French rival in exchange for its power assets, sources familiar with the German firm's thinking say.

The sources told Reuters on condition of anonymity that the offer under consideration put a slightly higher value on Alstom's energy activities than a rival bid from U.S. giant General Electric.

But the cash component is expected to be only a little more than half of what GE is offering.

"Valuations for all the different elements have been done, but depending on which dials you turn you will arrive at different numbers for the cash element of the Siemens offer," one of sources said, adding that in any case it would be below 7 billion euros. Another source confirmed the cash part of the offer would fall under this threshold.

This reflects the fact that Siemens would be transferring its trains business to Alstom, allowing the French government to trumpet the creation of a new European rail champion.

It also follows a decision by Siemens to exclude some Alstom energy activities -- nuclear, wind energy, and transmission and distribution (T&D) -- from its bid, two sources said.

Both Siemens and Alstom declined to comment.

Alstom is already in talks with GE over a 12.35 billion euro ($16.8 billion) all-cash offer for its power arm, which has been extended until June 23. Under strong political pressure, it has opened its books to Siemens so the German firm can propose its own deal if it wants to.

Excluding Alstom's nuclear and wind businesses from its bid could allow the the French group to sell them directly to state-controlled energy firm Areva. But it could also create problems as one source close to the French camp said it would be difficult to separate the nuclear side of the turbine business from non-nuclear activities.

As for the T&D business, valued at 1.5 to 2 billion euros, sources said Siemens was worried that acquiring Alstom's assets in this area would create formidable regulatory hurdles given the dominant position Siemens already enjoys in the sector.

Therefore, the German firm has decided to also exclude T&D -- a business that makes technology for transporting electricity from power plants to consumers -- from its offer.

As previously reported by Reuters, Siemens would be offering its rail activities and would propose creating a joint venture with Alstom in rail signalling.

One source said Siemens was keen to retain a controlling stake in any signalling venture, potentially another source of conflict as Alstom is also seen eager to have a majority share. How the signalling stakes are divided up would affect the cash component of the Siemens bid, the source added.

Sources said the offer also reflected a deduction of up to 800 million euros to cover potential compliance risks that Alstom's power unit faces in the United States, United Kingdom and Brazil.

While Siemens could present the formal offer for Alstom's power arm as early as Wednesday of this week, one of the sources said the German group may decide to take some extra time after GE extended its bid until June 23 at the request of the French government.