NYT - BHP Billiton to Spin Off Assets Into Metals and Mining Company

LONDON – The mining giant BHP Billiton said on Tuesday that it planned to spin off several assets into a new global metals and mining company to be listed in Australia.

The new company is expected to have assets in five countries and to focus on aluminum, coal, manganese, nickel and silver. A number of the assets to be spun off had been acquired by BHP as part of the merger with Billiton in 2001.

BHP Billiton said that it would continue to focus on its large, long-life iron ore, copper, coal, petroleum and potash basins following the reorganization.

The company first announced in April that it was considering structural changes to its business. Last week it said that its preferred option would be to seek a spinoff of some assets.

Ahead ofthe announcement on Tuesday, analysts had estimated that the company could carve off as much as $14 billion.

In the past two years, the company has sold off about $6.5 billion in assets as it aimed to simplify its structure.

The metals spinoff, to be achieved via a process known as a demerger, would allow BHP Billiton to reduce costs and improve the productivity of its remaining operations more quickly, the company said.

BHP Billiton’s chief executive, Andrew Mackenzie, said in a statement that the spinoff would allow the company to “move towards a simpler portfolio” and become “a higher-margin, higher-return business.”

The assets set to remain with BHP Billiton following the spinoff accounted for 96 percent of the company’s underlying earnings before income tax in the fiscal year that ended June 30.

“We believe the proposed demerger, if implemented, will accelerate the simplification of the group’s portfolio, provide investors with choice and unlock value in both companies,” Jacques A. Nasser, the BHP Billiton chairman, said in a statement.

The spinoff will require regulatory and shareholder approval. It is expected to be completed in the first half of 2015.

Shares of BHP Billiton declined 3.1 percent to 20.02 pounds, or about $33.48, in early trading in London on Tuesday.

BHP Billiton’s shareholders are expected to receive 100 percent of the shares of the new company through a distribution.

The new company is expected to be listed in Australia and to have a secondary listing in South Africa. The spinoff company would probably seek to have American Depositary Receipts traded in the United States as well.

David Crawford, who will retire from BHP Billiton’s board in November, is expected to serve as chairman of the new company, and Graham Kerr, BHP Billiton’s chief financial officer, is expected to serve as the new company’s chief executive.

The new company will be based in Perth, Australia, and will have about 24,000 employees and contractors.

Separately, BHP Billiton said that its fiscal year 2014 profit rose 23.2 percent to $13.8 billion, up from $11.2 billion a year earlier.

BHP Billiton, based in Melbourne, Australia, is the world’s largest metallurgical coal producer and one of the largest producers of iron ore and copper concentrate.

(BFW) U.K. Ministers Considered Sale of Royal Mail Stake in March: Sky

U.K. Ministers Considered Sale of Royal Mail Stake in March: Sky
2014-08-19 09:31:38.24 GMT


By Christopher Kingdon
Aug. 19 (Bloomberg) -- {http://bit.ly/1w46wYU}

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>>> SAP - To invest up to $500M through 2020 in Africa

To invest up to $500M through 2020 in Africa 

announced a seven-year plan to up-skill local African talent and drive sustainable innovation and growth in Africa. With more than 1,300 customers across the continent, SAP is already enabling African businesses and governments of all sizes to grow, scale and globalize, as well as make the transition to a networked, technology-driven innovative economy. As part of this commitment, SAP Africa is now taking responsibility for SAP operations across 51 African countries, including Morocco, Algeria and Tunisia and Mauritania. 

With the vision of helping make Africa run better and improve the lives of Africans, SAP plans to invest up to US $500 million through 2020 as it continues to build on the region's impressive double-digit growth rate momentum. The goal is to establish the African region as one of the company's top-five growth markets globally. Much of the direct investment will be outside South Africa, where SAP already has a solid footprint. 

This plan was made public today at press briefing hosted by Robert Enslin, member of the Executive Board of SAP SE and president of Global Customer Operations, and Pfungwa Serima, CEO of SAP Africa.

(BFW) CRH 1H Sales, Ebitda In Line; Confirms 2H Ebitda Guidance

CRH 1H Sales, Ebitda In Line; Confirms 2H Ebitda Guidance
2014-08-19 06:07:17.283 GMT


By Cormac Mullen
Aug. 19 (Bloomberg) -- CRH says 1H sales rise 4% to
EU8.32b, Bloomberg est. EU8.27b, LFL sales growth 5%.
* 1H Ebitda +27% y/y to EU505m vs est. EU504m, co. forecast
EU500m
* 1H dividend/shr 18.5c in line with BDVD est. 18.5c
* Continues to expect 2H Ebitda to be “somewhat ahead” of
last year’s EU1.08b
* Says portfolio review progressing, multi-year divestment
program of ~EU1.5b-EU2b actively under way
* Says economic indicators continue to be positive in
Americas; despite more demanding comparatives expect
Americas overall to be ahead in 2H
* Says after strong start in Europe has seen some easing of
trends in recent months, whilst Ukraine uncertain political
backdrop remains cause for concern expects 2H performance
broadly in line y/y
* Says 1H acquisitions/investments EU130m

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>>> What to look at today - 19/08/2014

US MArket closed higher, small caps leading the move. descalation in Ukraine is still not there but Fridays news of direct confrontation between Russian forces & Ukrainian troops, Cyclical sectors displayed broad strength as five of six growth-oriented groups finished ahead of the broader market. The industrial sector (+1.5%) seized the lead in the early going and held on until the close with help from transport stocks, the top-weighted sector—technology (+1.1%)—also finished ahead of the S&P 500 even as chipmakers were unable to keep pace after Goldman Sachs downgraded the entire semiconductor space, Large cap components picked up the slack with the likes of Apple and Google ending higher by 1.2% and 1.5%, respectively. DG/FDO deal boosted the consumer disc. sector, On the countercyclical side, telecom services (-0.1%) and utilities (-0.2%) registered slim losses, while consumer staples (+0.6%) and health care (+0.8%) finished a bit behind the broader market. volume were below average with 600mil shares...VIX @ 12,32 -6,31%..Rackspace trading higher after hours; WSJ reporting Blue Harbour acquired stake (6,5% stake), Obama spoke on situation in Iraq, reiterating US will continue to pursue long-term strategy to turn tide against ISIS, Chinese press reports, State Information Center think tank speculated that all China non-Tier-1 cities would remove home purchasing curbs by the year end. Separately, CCB clarified that mortgage policy has not changed in Shanghai, which ran counter to overseas reports that CCB would re-define "first home mortgages" in a bid to stimulate more housing demand....Nikkei +0.89% Hang Seng +0.01% Shanghai-0.28%

Eur$ 1.3357 S&P +0.18% EuroStoxx +0.20% FTSE +0.25% Dax +0.16^ SMI +0.28%

Macro
- Treasury Work May Push Anti-Tax Inversion Decision to Sept.: WSJ

Keep an eye on :
- CRG IM : Fondazione Carige may sell further 10% stake in Banca Carige
- CON GY : Continental Hires Self-Driving Car Exec. From Google: WSJ Link
- DTE GY : Deutsche Telekom may consider buying Telecolumbus or Primacom - Focus
- ELUXB SS : Electrolux Still in Talks With GE on Appliance Unit Sale: WSJ
- ENI IM : Italy Antitrust Opens Investigation Into Eni on Gas Mkt Share
- ENI IM : Italy to Get EU5b Revenue in Sale of Eni, Enel Stakes: Stampa
- FORN SW : Forbo 1H Sales Rise 1.8%; Augments Current Share Buyback
- LISP SW : Lindt & Spruengli 1H Ebit Beats Ests.; Reiterates Outlook
- OCS FP : Oberthur Technologies Buys Nagraid Security From Kudelski Group
- PHARM NA : Pharming Buys Some of French Company’s Assets for EU0.5m in Cash
- RBI AV : looking at private banking and asset management buys; not considering Coutts International Finanz und Wirtschaft
- SEM AV : Semperit 1H Revenue Rises 2.9% to EU464m; Net Dips on Expenses
- SIX2 GY : Sixt 2Q Ebit Rises, Confirms 2014 Forecast
- STAN LN : Standard Chartered to Pay Up to $300m to New York Regulator: FT
- SWMA SS : Swedish Match does not exclude selling or listing its stake in Scandinavian Tobacco Group
- TEF SM : Telefonica to Add TV Content to Bid for Vivendi’s GVT: Reuters
- TKA GY : ThyssenKrupp Plans Further Disposals, Handelsblatt Reports
- VIV FP : Vivendi May Buy 15% in Telecom Italia Amid GVT Bid: Repubblica
- VOD LN : EE First, Vodafone Last For U.K. Performance in Survey: BBC Link
- VOD LN : India Top Court Sets Nov. 26 to Hear Vodafone Plea on Permits
- VOD LN : Vodafone eyes Tim Brasil - Il Messaggero
- ZO1 GY : Zooplus Posts 1H Profit; Sees 2014 ‘Slight‘ Gross Margin Decline

>>> Brokers Upgrades & Downgrades - 19/08/2014

>>> Up
*BAYER RAISED TO BUY VS NEUTRAL AT UBS
*FRAPORT ADDED TO CONVICTION BUY LIST AT GOLDMAN, WAS BUY
*LEIFHEIT AG RAISED TO BUY VS HOLD AT BANKHAUS LAMPE
*QINETIQ RAISED TO NEUTRAL VS SELL AT GOLDMAN

>>> Down
*AEROPORTS DE PARIS CUT TO CONVICTION SELL VS NEUTRAL: GOLDMAN
*MEGGITT CUT TO NEUTRAL VS BUY AT GOLDMAN
*NOBEL BIOCARE CUT TO HOLD VS BUY AT BERENBERG

>>> PT Changes


>>> Initiation
*APERAM RATED HOLD AT ING, WAS RESTRICTED; PT EU26
*CARL ZEISS MEDITEC RATED NEW NEUTRAL AT GOLDMAN, PT EU28
*EFG RATED NEW NEUTRAL AT CREDIT SUISSE, PT CHF10.20
*FIAT RATED NEW UNDERPERFORM AT CREDIT SUISSE, PT EU6
*LIBERBANK RATED NEW BUY AT CITI, PT EU0.83
*OERLIKON REINSTATED OUTPERFORM AT CREDIT SUISSE, PT CHF16
*SULZER REINSTATED UNDERPERFORM AT CREDIT SUISSE, PT CHF98
*VONTOBEL RATED NEW OUTPERFORM AT CREDIT SUISSE, PT CHF37.50

>>> Call
>> Stock
*ABCAM RATED NEW BUY AT GOLDMAN, PT 545P
*FRAPORT ADDED TO CONVICTION BUY LIST AT GOLDMAN, WAS BUY
*GLOBALTRANS REMOVED FROM GOLDMAN CEEMEA FOCUS LIST, STAYS BUY
*NORTH ATLANTIC DRILLING RATED NEW NEUTRAL AT GOLDMAN, PT $10

>>> Vodafone eyes Tim Brasil - Il Messaggero

Vodafone eyes Tim Brasil 

Vodafone, the listed UK telco, is eyeing Tim Brasil, the mobile phone Brazilian subsidiary of Telecom Italia, Italian language daily Il Messaggero reported. The item cited an article in the online version of Brazilian daily O Estado de San Paolo. The report claimed that the Estado article said that Vodafone expressed interest in Tim Brasil to the Brazilian government in a meeting in the Brazilian embassy in London on 31 July.

The report said that the Brazilian government had hoped Vodafone would commit to taking part in an auction for the country's 4G network but that Vodafone said it was more interested in acquiring one of Brazil's three mobile phone companies.

The report noted that Telecom Italia (TI) is looking to merge Tim Brasil with GVT, the Brazilian mobile phone subsidiary owned by Vivendi in a deal that would see Vivendi become the largest shareholder in TI. The report said that Spanish telco Telefonica, presently TI's largest shareholder, has made Vivendi an offer for GVT.


Source Il Messaggero

>>> Deutsche Telekom may consider buying Telecolumbus or Primacom

Deutsche Telekom may consider buying Telecolumbus or Primacom

Deutsche Telekom, the listed German phone company, would consider buying cable players Telecolumbus or Primacom, the German-language magazine Focus reported.

Niek Jan van Damme, a Deutsche Telekom manager responsible for telephony activities within Germany, told the magazine that in the near future the company conceivably could buy up small cable companies like Telecolumbus or Primacom. He said the company is looking closely at the cable TV market and is keeping open the option of acquisition deals if they are good fits.


Source Focus

>>> Swedish Match does not exclude selling or listing its stake in Scandinavian

Swedish Match does not exclude selling or listing its stake in Scandinavian Tobacco Group

Swedish Match, the Swedish tobacco company, does not exclude listing or selling its 49% stake in Scandinavian Tobacco Group (STG), according to Borsen.

The Danish business daily cited a Swedish Match spokesperson after STG’s Chairman, Jorgen Tandrup, said to the paper yesterday that an IPO was a possible scenario for the company.

Swedish Match’s IR manager, Emmet Harrison, commented that Swedish Match has benefited from its ownership in STG with over DKK 200m (EUR 26.8m) in dividends per year. He said that nothing will occur with the stake until after the 1 October and the parties are still waiting for JP Morgan to finish its evaluation of the situation. He also commented that no decisions have been made yet but confirmed that an IPO is one of three possibilities along with selling the stake or keeping it.

The item noted that STG’s other shareholders, the Augustinus Fund and CW Obel, declined to comment on the matter.


Source Borsen