(BFW)Roche Agrees to Buy InterMune in $8.3b Transaction-->38% premium


BFW 08/24 16:07 Roche Agrees to Buy Intermune in $8.3b Transaction
BN 08/24 16:05 *ROCHE AGREES TO BUY INTERMUNE IN $8.3B TRANSACTION

MORE: Roche Agrees to Buy InterMune in $8.3b Transaction
2014-08-24 16:17:45.71 GMT


By Andrea Snyder
Aug. 24 (Bloomberg) -- Transaction to be neutral to core
EPS in 2015, accretive from 2016 onwards.
* Transaction to close this year
* InterMune board recommends holders tender shrs to Roche
* Offer represents premium of 38% to InterMune’s closing price
on Aug. 22
* Citi is financial adviser to Roche; Centerview Partners,
Goldman Sachs financial advisers to InterMune
* NOTE: InterMune’s lead medicine pirfenidone approved for
idiopathic pulmonary fibrosis in EU, Canada, under
regulatory review in U.S.
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Andrea Snyder in Washington at +1-202-624-1831 or
asnyder5@bloomberg.net
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Andrea Snyder at +1-202-624-1831 or
asnyder5@bloomberg.net

>>> Airbus considers sale of Atlas Elektronik stake; could promp

Airbus considers sale of Atlas Elektronik stake; could prompt new bid from Thales
Airbus, the listed European aerospace and defence group, is looking at disposing of its 49% interest in the German submarine equipment company Atlas Elektronik, a newswire report said. Reuters reported that the German Die Welt website said industry sources revealed the sale is under consideration as part of Airbus’s review of its military operations.

A decision will be taken on the matter during the next few months, the report said.

ThyssenKrupp is expected to have first refusal on the stake, the item reported, noting that Airbus (then known as EADS) and the Germany-headquartered conglomerate acquired Atlas Elektronik jointly from BAE Systems nine years ago. Thales of France was an unsuccessful bidder at that time, and could table a fresh bid if Airbus opts to dispose of its stake now, the report said.

ThyssenKrupp, Airbus or Thales did not wish to comment, the report said. It added that Atlas stated the onus to respond to the report was on its owners.

The report did not suggest how much a sale of Atlas Elektronik might be worth, but said the company made EUR 441m sales last year.

WSJ : Roche to Acquire InterMune for $8.3 Billion

Roche to Acquire InterMune for $8.3 Billion
Swiss Pharmaceutical Giant Makes First Big Buy After a String of Much Smaller Purchases

LONDON — Roche Holding AG ROG.VX +0.04% said it has agreed to buy San Francisco-based InterMune Inc. ITMN +1.11% for $8.3 billion in cash, the biggest acquisition in years for the Swiss pharmaceutical giant after a string of much smaller purchases.

The deal aims to boost Roche's relatively small respiratory business through InterMune's single drug, pirfenidone, a pill that treats a progressive and fatal lung disease called idiopathic pulmonary fibrosis. The drug is approved for marketing in some of the world's biggest markets, but not yet in the U.S.

It is also the latest big deal by a big global pharmaceutical group in a fast-changing industry. Health systems around the world, particularly in the U.S., have started to put pressure on drug companies to keep prices down.

And a number of blockbuster drugs from some of the world's biggest manufacturers have lost or will soon lose patents to expiration. Roche's biological drugs, however, are better protected than some of its rivals' chemical-based pills, partly because their patents expire later, and partly because they are harder to copy.

Roche has so far kept a low profile in the big deal-making that has characterized 2014, despite its large cash generation. Novartis AG NOVN.VX +0.31% and GlaxoSmithKline GSK.LN -0.35% PLC signed a series of asset swaps worth more than $20 billion in April. AbbVie Inc. ABBV +0.44% agreed to acquire Shire SHPG +0.04% PLC for about $54 billion last month.

Roche has picked off a number of smaller companies, all in deals worth less than $1 billion in upfront payments, in recent months. But it hasn't made a big play for another company since abandoning a proposed $7 billion acquisition of Illumina Inc., ILMN -0.05% a U.S. gene-sequencing group, in 2012.

This latest acquisition, which Roche said has been recommended by InterMune board, is the Swiss group's biggest since 2009, when it bought the remaining shares in Genetech that it hadn't already owned, for $46.8 billion.

InterMune's pirfenidone is already marketed in Europe, Canada, Japan and China under the brand names Esbriet, Pirespa and Etuary. Regulators are currently deciding whether the drug can be marketed in the U.S.

Roche's offer represents a 38% premium over InterMune's closing share price on Friday of $53.80 and a 63% premium before takeover speculation about the U.S. biotech company started circulating earlier in August.

The InterMune deal marks a move to diversify away from Roche's core businesses in oncology, autoimmune diseases and accompanying diagnostic tools. Roche has only two marketed respiratory products in the U.S., both in specialist fields: Xolair for severe and allergic asthma and Pulmozyme for cystic fibrosis. One of its pipeline products—lebrikizumab—is also being developed for severe asthma.

The InterMune acquisition also departs from the much smaller-scale deals Roche has focused on recently to build out its oncology and diagnostics businesses. Those include an agreement signed to acquire Seragon Pharmaceuticals for $725 million in July and deals for diagnostics companies IQuum and Genia Technologies earlier this year, both of which were worth less than $500 million each.

Roche is betting big on pirfenidone. InterMune has no other drugs in clinical trials, although it is conducting preclinical research on other fibrosis treatments. A U.S. regulatory decision on pirfenidone is due in late November.

The U.S. Food and Drug Administration rejected the drug in 2010, asking for more data to prove the treatment's effectiveness. The resulting additional trial data could also be presented to regulators in Europe to try and expand its use in a broader range of patients there.

Apart from regulatory risk in the U.S., pirfenidone could soon face competition. German pharmaceutical group Boehringer Ingelheim has a rival drug candidate for idiopathic pulmonary fibrosis called nintedanib, which also is U.S. regulatory review. A decision on nintedanib is expected next February.

Analysts have predicted both drugs could rack up blockbuster sales by 2019. But while both may slow the loss of lung function, they don't cure the disease.

There are about 128,000 U.S. sufferers of idiopathic pulmonary fibrosis, which mainly affects middle-aged and older adults, and more men than women. The disease kills quickly: Median survival time after diagnosis is two to three years.

Roche has ample financial firepower for the deal. Before Sunday's announcement, it was set to move to a net cash position next year, having largely paid off debt it took on for the Genentech buyout.

Roche generates around $14 billion a year in free cash flow, before dividend payments. Roche said it expects the InterMune deal to be accretive to earnings from 2016 onward.

Sisi Says Funds Come From Qatar to Destroy Egypt: MENA

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CORRECT: Sisi Says Funds Come From Qatar to Destroy Egypt: MENA 2014-08-24 15:47:43.464 GMT

By Salma El Wardany Aug. 24 (Bloomberg) -- (Source corrects to show U.S. is not among countries allegedly supporting websites.) President Abdel-Fattah El-Sisi says financing also coming from Turkey, Muslim Brotherhood to fund websites to destabilize the country, state-run Middle East News Agency reports. * El-Sisi made his comments during meeting with editors of Egyptian newspapers and media: MENA

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To contact the reporter on this story: Salma El Wardany in Cairo at +20-224618508 or selwardany@bloomberg.net To contact the editors responsible for this story: Andrew J. Barden at +971-4-364-1057 or barden@bloomberg.net Amy Teibel, Sheldon Reback

>>> USGS: Magnitude 6.0 earthquake struck 4 miles northwest of American Canyon,

USGS: Magnitude 6.0 earthquake struck 4 miles northwest of American Canyon, 6 miles SSW from Napa (near San Francisco, California)
- Depth of 10.8KM 

- Earthquake was largest in the the San Franciso area since 1989. There are reports of more than 50 gas main breaks and 30 water main leaks in the affected areas. 
Nearby Cities 6km (4mi) NW of American Canyon, California 9km (6mi) SSW of Napa, California 13km (8mi) NNW of Vallejo, California 14km (9mi) SE of Sonoma, California 82km (51mi) WSW of Sacramento, California

FT : Petro Poroshenko warns of ‘constant military threat’ on Ukraine

Petro Poroshenko warns of ‘constant military threat’ on Ukraine

Ukraine’s pro-western president announced $3bn in additional defence spending on Sunday as he warned the war-torn country faced a “constant military threat” for the foreseeable future.
Petro Poroshenko flexed his might by holding a military parade during commemorations of the former Soviet republic’s 23rd year of independence.

Minutes before armoured vehicles and truck-mounted missile launchers rolled down Kiev’s main street Khreshchatyk, Mr Poroshenko addressed the country’s military and thousands of citizens saying “it is clear that in the foreseeable future, unfortunately, a constant military threat will hang over Ukraine”.
“And we need to learn not only to live with this, but also to be always prepared to defend the independence of our country,” he added without directly mentioning Russia, which Kiev and the west accuse of orchestrating and arming a four-month long separatist rebellion in Russian-speaking eastern regions.
Addressing crowds, Mr Poroshenko said Ukraine surrendered its Soviet nuclear arsenal in the 1990s for the sake of global security, and called for more international support, warning that “European and global security” is again at risk.
The soldiers on parade and the newly built armoured jeeps would now join the military campaign to crush Russia-backed separatists in eastern regions, Mr Poroshenko said.
Ukraine has made significant gains in past weeks towards encircling the militants – many admittedly from Russia – within their strongholds in Donetsk and Lugansk. But with rebels putting up a strong fight in battles that have claimed the lives of more than 2,000 civilians and combatants, fresh diplomatic efforts are under way to broker a peaceful settlement.
During a visit to Kiev on Saturday, Germany’s chancellor Angela Merkel called for “a path towards peace” while urging Russia to seal its borders with Ukraine, halting the inflow of fresh arms and rebels.
Video

More signs of Russia’s Ukraine role

July 2014: FT defence and security editor Sam Jones assesses the latest evidence from US intelligence and social media about Russia’s role in a massive arms build-up in Ukraine
Mr Poroshenko is expected to hold his first face-to-face talks with Russian president Vladimir Putin on Tuesday during a summit in Minsk also to be attended by EU leaders.
Russia has repeatedly denied arming eastern Ukraine rebels, but it sparked fresh concern on Friday when a convoy of about 260 trucks carrying humanitarian aid arrived in Ukraine’s rebel-held eastern regions without Kiev’s permission. Tension eased on Saturday after the trucks returned to Russia after unloading their cargo. On Sunday, separatists paraded dozens of Ukrainian prisoners in downtown Donetsk.
In the face of Russia’s March annexation of Crimea and an economy deep in recession, patriotism in Ukraine has surged. A recent poll indicates that more than 90 per cent of citizens back independence in the country whose cities are divided on an east-west axis between Russian and Ukrainian speakers, respectively.
While battles rumble in Lugansk and Donetsk, activists throughout other parts of the country have painted fences and bridges in the blue and yellow colours of the national flag.
Draped in the Ukrainian flag in Kiev on Sunday was Olga, a 32-year old mother with her eight-year old daughter Marta. “For us, this independence celebration is met with tears in our eyes as the country is in a state of war,” she said.
“But we also see our country united in patriotism as never before, confident in victory, ready to defend itself and truly become independent,” she added.

Pro-Moscow separatists in eastern Ukraine have escalated the political turmoil that threatens to tear the country apart
Nearby, a teary-eyed 76-year-old pensioner laid flowers at street side memorials honouring activists shot down by snipers during February protests that toppled Viktor Yanukovich, the country’s previous Moscow-friendly president.
“My heart goes out for their mothers, and the mothers of the soldiers dying in the east now,” she said while crossing herself. “Shame on Russia. They are to blame for all of this,” she added.
Holding his son’s hand at the parade, 30-year-old Oleg questioned whether military force alone will solve the eastern Ukraine conflict.
“I don’t know how this will end,” he said. “Of course we need a stronger army, but we can’t win a war against Russia alone. Serious diplomacy and much more support from the west will be key . . . it’s so frustrating that the west has been so soft on Putin so far and isn’t providing modern arms to our army,” he added.
Also in the crowds were dozens of camouflage-dressed and freshly trained troops that joined a voluntary paramilitary battalion called Kiev-1. They would soon be on their way to eastern Ukraine.
“We need more modern equipment, everything from guns to armoured vehicles,” the group’s commander said.

>>> BOJ Gov Kuroda: impact of the recent sales tax increase is starting to fade

BOJ Gov Kuroda: impact of the recent sales tax increase is starting to fade; underlying strength of Japan economy remains, domestic demand is solid - comments to press at Jackson Hole - Notes nominal wages are growing in Japan. - Will maintain very accommodative monetary policy until we reach the 2% inflation target and price stability is seen; Japan is only half way to achieving price stability. - Will not hesitate to adjust policy if we fall short of the inflation goal.