Danone Said in Talks to Sell Medical Nutrition Unit to Nestle
-- Danone is in advanced talks to sell ts medical-nutrition business to Nestle after Fresenius SE dropped out of the process, according to people familiar withthe matter who asked not to be identified.
Bridgestone Falls Most in Month; Keeps Forecasts Below Estimate -->Watch Michelin, Continental
+------------------------------------------------------------------------------+
BN 05/12 00:22 *BRIDGESTONE EXTENDS DROP TO 3.2%, MOST SINCE APRIL 8
+------------------------------------------------------------------------------+
Bridgestone Falls Most in Month; Keeps Forecasts Below Estimate 2014-05-12 00:45:14.895 GMT
By Drew Gibson May 12 (Bloomberg) -- Shrs fall as much as 3.2%, most since April 8, in early Tokyo trading. * Co. on May 9 reported 67% gain in 1Q net income; kept FY forecast at 285b yen vs est. 306b yen (14 analysts) {FIFW NSN N5AM5S6JTSEU<Go>} * No analyst estimates for 1Q net, oper. profit * 1Q sales +8.7% to 863.6b yen vs est. 898.4b yen (2 analysts) * Stk has 12 buys, 4 holds, no sells * Topix +0.2%
Link to Company News:{5108 JP <Equity> CN <GO>}
For Related News and Information: First Word scrolling panel: {FIRST<GO>} First Word newswire: {NH BFW<GO>}
To contact the editor responsible for this story: Drew Gibson at +81-3-3201-8817 or dgibson2@bloomberg.net
+------------------------------------------------------------------------------+
Tech Selloff Makes Yelp to OpenTable Cheaper Targets: Real M&A 2014-05-11 23:00:01.4 GMT
(For a Real M&A column news alert: SALT REALMNA <GO>.)
By Brooke Sutherland May 12 (Bloomberg) -- For potential buyers from Google Inc. to Facebook Inc., takeover targets just got cheaper. The Standard & Poor’s North American Technology Internet Index has slumped about 20 percent in two months on investor concern that valuations for the fast-growing companies had gotten too frothy. The slide has made frequently mentioned takeover possibilities such as restaurant review site Yelp Inc. and reservation booker OpenTable Inc. more affordable, said Macquarie Group Ltd. Google, Yahoo! Inc. or Facebook could go after Yelp to get a slice of the $75 billion in local advertising spending that’s moving away from traditional sources such as newspapers, B. Riley & Co. said. EBay Inc. could be another suitor for Yelp, according to MKM Partners LLC. Yahoo -- poised to get a more than $10 billion windfall when Alibaba Group Holding Ltd. goes public -- also could be interested in now-cheaper targets such as smartphone advertiser Millennial Media Inc. and Pandora Media Inc., said CRT Capital Group LLC. “Some deals that were just out of reach before may now happen,” Rob Sanderson, an analyst at Stamford, Connecticut- based MKM, said in a phone interview. “There’s sort of a new- guard/old-guard thing going on in the Internet sector and the new breed of companies is growing very, very fast. The old-guard companies, like EBay or Google or Yahoo, would like to get more exposure to these areas.” Representatives for Yelp, OpenTable, Pandora, Yahoo, Facebook, Google and EBay -- all based in California -- declined to comment, as did a representative for Baltimore-based Millennial Media.
Buying Opportunity
Technology shares erased some gains from a rally in the Nasdaq Composite Index that drove valuations to about double that of the broader S&P 500 benchmark in March. The Nasdaq has since fallen 6.6 percent from its March 5 high. The decline has more to do with a shift in the way investors are assessing these high-growth stocks, and less to do with companies’ individual earnings power, Sanderson said. “There’s always something on the margin here or there for each of these companies, but nothing fundamental that would change the opportunity or the outlook,” Sanderson said. This “is an exceptional buying opportunity” for shareholders. The same may also be true for corporate acquirers, he said. Yelp is down 45 percent from its 52-week high of $98.04. Last week, shares of the San Francisco-based company fell to 13.4 times its sales in the past year, the lowest multiple since July.
‘Premium Property’
For interested buyers, which also may include Apple Inc., “it’s definitely easier to justify the price,” Blake Harper, a Baltimore-based analyst at Wunderlich Securities Inc., said in a phone interview. Yelp, which closed last week at $54.22, has a market value of $3.9 billion. A representative for Apple declined to comment. Buying Yelp would help larger technology providers gain a stronger presence in local advertising as about $75 billion in spending that had been earmarked for traditional platforms comes up for grabs over the next five years, said Sameet Sinha, a San Francisco-based analyst at B. Riley. “Local advertising is a nut that nobody has been able to crack,” Sinha said in a phone interview. “But now I think there’s actually an imperative to crack that nut. And Yelp is a premium property there. It is well-known, well-regarded among most consumers.”
Mobile Push
Yelp’s restaurant and bar reviews are increasingly accessed through mobile devices, which may appeal to companies that are trying to stay ahead of a consumer shift to smartphones, said Tom White, a New York-based analyst at Macquarie. For EBay, Yelp offers the local business relationships and mobile-user base needed to draw more consumers to its pay-by-smartphone platform, said Sanderson of MKM. Yelp’s revenue multiple is still more than double the median for U.S.-based Internet media and services companies valued at more than $1 billion, according to data compiled by Bloomberg. And any buyer may have to offer more than the company’s March high, at least an 81 percent premium, to get a deal done, said Kerry Rice of Needham & Co. “I don’t think there’s any reason for them to have to sell the company,” the San Francisco-based analyst said in a phone interview. “Unless it’s a very attractive offer, I don’t think it would be consummated.” For buyers looking for a cheaper option, OpenTable may be an enticing target, said White of Macquarie. With a price-sales multiple of 7.9, San Francisco-based OpenTable trades at about a more than 40 percent discount to Yelp, according to data compiled by Bloomberg. The company’s market value of $1.6 billion is less than half that of Yelp.
OpenTable Appeal
OpenTable “would be a good asset for anyone trying to build out a local or mobile ecosystem,” White said in a phone interview. It “checks a lot of the same boxes” as Yelp. Analysts forecast a 57 percent climb in Yelp’s revenue this year alone and a 19 percent rise at OpenTable, compared with a 13 percent slide in sales at Google and a 4 percent decline at Yahoo, according to estimates compiled by Bloomberg. Other acquisition candidates may include Pandora or Millennial Media, which have slumped 15 percent and 54 percent, respectively, so far this year, said Neil Doshi, a San Francisco-based analyst at CRT Capital. Pandora is a leader in online radio and has been able to thwart most competitive threats so far, said Doshi, who sees the $4.6 billion company luring Google, Yahoo or Apple. Millennial Media, which sells advertising space on mobile devices, may appeal to Google or Yahoo as way to expand their reach in one of the fastest growing digital marketing areas, he said.
Apple, Beats
Private companies also may become takeover targets, as the down market makes the prospect of an initial public offering less attractive, said Rice of Needham. Arista Networks Inc., a provider of networking equipment and services, and Mobile Iron Inc., a mobile-software developer, are delaying their IPOs to wait for better market conditions, people with direct knowledge of the matter said last week. The decisions come after some technology company IPOs raised less money than expected. Weibo Corp., the Chinese microblogging service owned by Sina Corp., priced its April public offering at the low end of its marketed range. Apple is in talks to buy Beats Electronics LLC, the closely held headphones maker and music streaming service co-founded by Dr. Dre, for $3.2 billion, people with knowledge of the matter said last week. A deal may spur Amazon.com Inc. to acquire a rival streaming service, with Spotify potentially as a good fit, Jefferies Group LLC analysts led by Peter Misek wrote in a report last week. A representative for Spotify declined to comment. Representatives for Seattle-based Amazon didn’t respond to a request for comment. “Companies that have resources take the down side in the markets as opportunities to pick up assets on a relatively less expensive basis,” Rice of Needham said.
For Related News and Information: Apple Said Near Buying Beats Electronics for $3.2 Billion NSN N5BBDW6JTSE8 <GO> Twitter Options Volume Surges Fivefold in Social Media Rout NSN N57R2I6S9734 <GO> Yahoo’s Alibaba Windfall Means Firepower to Chase Google: Tech NSN N57ZUA6S972G <GO> Real M&A columns: NI REALMNA <GO> Top deal news: DTOP <GO> Bloomberg Industries, Internet media: BI INET <GO>
--With assistance from Anthony Palazzo in Los Angeles, Olga Kharif in Portland and Leslie Picker in New York.
To contact the reporter on this story: Brooke Sutherland in New York at +1-212-617-0448 or bsutherland7@bloomberg.net To contact the editors responsible for this story: Beth Williams at +1-212-617-2307 or bewilliams@bloomberg.net Elizabeth Wollman
+------------------------------------------------------------------------------+
Gaillon Invest Confirms EU17.50/Share Offer for Club Med 2014-05-11 17:41:02.423 GMT
By Fabio Benedetti-Valentini May 11 (Bloomberg) -- Gaillon Invest’s offer is for all of Club Med’s shrs, co. says in statement. * Gaillon’s offer backed by Club Med’s board NOTE: July 16, 2013, Gaillon Invest Bids for All Club Med Shares at EU17.50 Apiece NSN MQ0XWI6K50Z9 <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: Fabio Benedetti-Valentini in Paris at +33-1-5365-5095 or fabiobv@bloomberg.net To contact the editors responsible for this story: Frank Connelly at +33-1-5365-5063 or fconnelly@bloomberg.net; Edward Evans at +44-20-3525-3190 or eevans3@bloomberg.net
Swedish research bodies ‘worried’ over Pfizer bid for AstraZeneca
The two leading research bodies in Sweden have spoken out against Pfizer’s $110bn bid for AstraZeneca, criticising mergers in the pharmaceutical sector and the US company’s previous form. The head of the Karolinska Institutet, a Stockholm university that accounts for almost half of the medical research in Sweden, and the chairman of the body behind the Nobel Prizes told the Financial Times of their concerns, in their first public comments on a takeover offer for the Anglo-Swedish company that has raised heckles on both sides of the Atlantic.
“I worry [about the bid]. I think it may have negative consequences for Sweden in the long run. There is always the worry that if the company decides to make reductions that they will happen here rather than elsewhere,” said Carl-Henrik Heldin, chairman of the Nobel Foundation and a cancer researcher himself. Anders Hamsten, vice-chancellor of Karolinska Institutet, said: “We are worried and concerned that this would limit the future activities of a new company both in the greater Stockholm area but also in the whole of Sweden.” Pfizer’s bid provoked vocal opposition quickly in the UK including from the Wellcome Trust, Britain’s biggest medical research foundation, but criticism is starting to be raised in AstraZeneca’s other home country of Sweden. Anders Borg, Sweden’s finance minister, said last week that Pfizer’s record in the country made him sceptical about its plans for AstraZeneca’s research operations. One of the Anglo-Swedish drugmaker’s three big research centres is based in Mölndal outside Gothenburg. Mr Hamsten said: “In a way we have a somewhat dismal history in relation to Pfizer. Pfizer took over Pharmacia [in 2003] and at that point of time fairly strong commitments were made to invest and do research in Sweden, and that really didn’t turn out to be the case.” Mr Heldin said foreign takeovers of both Astra and Pharmacia, which was first bought in 1995 by Upjohn of the US, had been “very bad” for Sweden. In depth
Pfizer’s AstraZeneca bid
Pfizer’s £63bn offer for AstraZeneca, if successful, would create the world’s biggest pharmaceuticals group and represent the largest foreign takeover of a UK company “Sometimes I have the feeling it is not scientific arguments or even in the best interests of the companies involved. It was very sad for us here in Sweden to see Pharmacia being extinguished in a couple of years due to mergers,” he added. The fate of Pharmacia is at the centre of the debate in Sweden. Despite Mr Borg’s sharp criticism, several experts on the pharmaceutical sector say the company’s move out of Sweden was due more to its ownership under Upjohn than Pfizer. “I don’t blame Pfizer for Pharmacia. The destruction was at an earlier stage,” said Mr Heldin. But he added about Pfizer’s bid for AstraZeneca: “We have all reasons to worry about the same pattern happening again. It matters a lot where the head office for this company will be located. In a situation where management decides to make cuts it’s more likely that they will take place in Sweden than in the UK.”
Beni Stabili Gestioni will merge with Polaris Real Estate and Investire Immobiliare
Beni Stabili Gestioni, the Italian real estate company, will merge with Polaris Real Estate sgr andInvestire Immobiliare, reported Italian daily Il Sole 24 Ore.
The article, which quoted unnamed sources, said the agreement will be completed at the beginning of next week. The new entity will have assets under management of EUR 7bn, second to Idea Fimit (EUR 9.4bn). Mediobanca has been advising on the merger, the report added.
Polaris Real Estate is majority owned by Cariplo. Beni Stabili Gestioni is 75% owned by Beni Stabili, 10% by ICCREA Holding and the remaining by Banca Finnat of the Nattino family. The Nattino family is also a main shareholder in Investire Immobiliare where the Benetton family is also a shareholder, the item noted.
Source Il Sole 24 Ore
Barron's Summary: Positive on CHL, GS, SVU, BCO; Cautious on WFM, TWTR
- Cover story: Barrons ETF Roundtable; Jared Kizer of BAM Alliance, Fran Rodilosso of Van Eck, Luciano Siracusano of WisdomTree, Chris Brightman of Research Affiliates, and Maz Jadallah of AlphaClone discuss new approaches to ETF investing including smart beta, an umbrella term for index investing designed to beat the market rather than simply match it.
- Tech Trader: Cautious on Alibaba: Tiernan Ray says Chinese e-commerce sites IPO prospectus, which did not come with updated financials, raises many questions, including those concerning loans to media companies owned by chairman Jack Ma and how subject to the whims of Chinese regulators company will be, in addition to concerns about its partnership structure.
- Trader: Now that the market is into its fifth month of 2014, its safe to conclude it probably wont be like last year; Positive on GS: Those willing to think about the long term may be rewarded by investing in Goldman Sachs despite its equity and fixed-income businesses, since demand for underwriting, trading, and custodial services is likely to keep growing; Positive on SVU: Company is in a better position to compete in food wholesaling, and has begun to reverse the issues that led to losses amid a focus on returning to sustainable and healthy profits.
- Features: 1) Positive on CHL: Companys mobile growth could rebound as it rolls out its high-speed network, prompting increased, lucrative smartphone use, and could see upside after Alibabas IPO, given the e-commerce sites reliance on it; 2) Special Report: Picks from those who attended the Sohn conference, including William Ackman (FNMA), David Einhorn (short ATHN), Mariko Gordon (EFII, FUL, PCRX), Jim Grant (Gazprom), Michael Guichon (Fiat), Jeffrey Gundlach (short XHB), Phillippe Laffont (LBTYA), Michael Novogratz (Brazilian stocks), Larry Robbins (HUM, WLP, MON), Zach Schreiber (VLO, MPC; short WTI), Chris Shumway (MCO); 3) Positive on FLS: Shares of leading player in fluid-control products and services have rallied and could continue to rise as demand grows in the multiple markets it serves.
- Small Caps: Positive on BCO: Recent selloff looks like a buying opportunity for company that retains substantial franchise value in a fragmented industry; Positive on BGFV: Sporting goods retailer is expanding its merchandise lineup by adding higher-margin name-brand goods as it seeks to return to pre-recession operating margins. - Follow-Up: Cautious on WFM: Shares have fallen on slowing growth, but P/E multiple belongs to a time when retailer saw 15-20% annual profit increases; any future stock rise will come from earnings and not multiple expansion, but growing competition will make that difficult; Cautious on TWTR: While its tough to justify Twitters stock price based on its financial outlook, some deep-pocketed tech and Internet giants could see franchise value in the stock, and shares may have found a floor; Positive on BEAV: Company is a good way to play the rise in aerospace and defense M&A.
- Mutual Funds: Interview with George Evans, Portfolio Manager, Oppenheimer International Growth (top ten holdings: BT, SAP, Roche Holding, Aalberts Ind, SYT, Aryzta, UL, Inditex, Intertek Group, Weir Group); Interview with Marty and Ari Sass, Chairman and CEO & Senior VP of M.D. Sass (top picks: MCK, ACT, SBGI, NXST, CBS, SLB, CBI, CAM).
- European Trader: European large-cap stocks could begin to shine again with some help from the ECB (Positive on ING, Deutsche Post).
- Asian Trader: With demand for deep-sea oil and gas exploration rising, two of the best plays in offshore drilling are Singapore shipyards (Positive on Keppel, SembCorp Marine).
- Emerging Markets: San Diego-based Brandes Investment Partners, with a value-oriented and sharply contrarian approach, likes Russia and Brazil despite problems in those countries (Positive on Gazprom, PBR).
- Commodities: Prices for commodities from sugar to nickel to palm oil are poised to rise as investors prepare for the possibility of more extreme weather this year.
- Streetwise: Though offshore drillers such as NE and RIG have been hammered this year, Dallas-based refiner HFC looks interesting despite recent disappointments because production in Permian Basin is booming and company has $1B on its balance sheet to keep paying dividends
+------------------------------------------------------------------------------+
Merkel Adviser Calls for Swiss-Style Intervention for Euro: Welt 2014-05-11 00:00:00.0 GMT
By Christoph Rauwald May 11 (Bloomberg) -- ECB should “define a clear exchange rate target and defend it,” Sunday edition of Die Welt cites Peter Bofinger, an economic adviser to German Chancellor Angela Merkel, as saying in interview. * ECB should follow example of Swiss National Bank * Says exchange rates moves largely detached from macroeconomic facts, which justifies intervention by central banks * Says strong euro jeopardizing efforts by European crisis states to reduce labor costs, improve competitiveness * NOTE: Related story: French Call for ECB Action on Euro Said to Rile German Lawmakers NSN N5BFCC6TTDSM <GO> * NOTE: Related story: Euro Falls Most in Seven Weeks as Draghi Signals Easing in June NSN N5BSGW6KLVRI <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: Christoph Rauwald in Frankfurt at +49-69-9204-1146 or crauwald@bloomberg.net To contact the editors responsible for this story: Chad Thomas at +49-30-70010-6232 or cthomas16@bloomberg.net John Deane, Ash Kumar
+------------------------------------------------------------------------------+
BT to Start New Mobile Network; 4G Price War Looms: Telegraph 2014-05-11 07:40:54.42 GMT
By Gaurav Panchal May 11 (Bloomberg) -- BT will relaunch its mobile network for business within three months, with its re-entry into consumer market due by next April, the Sunday Telegraph reports. * BT plans to create its network by upgrading customers’ Home Hub equipment to broadcast 4G as well as Wi-Fi: Telegraph
For Related News and Information: First Word scrolling panel: FIRST<GO> First Word newswire: NH BFW<GO>
To contact the reporter on this story: Gaurav Panchal in London at +44-20-7392-0511 or gpanchal2@bloomberg.net To contact the editors responsible for this story: James Ludden at +44-20-7673-2645 or jludden@bloomberg.net Ash Kumar, John Deane