>>> Alstom open to counter bid from Siemens despite accepting GE bid for energy

Alstom open to counter bid from Siemens despite accepting GE bid for energy business; EDF could be involved by French government – reports (translated)

Alstom’s board is open to a counter bid from Siemens despite accepting a USD 12bn (EUR 8.67bn) bid from General Electric (GE) for its energy business, the Financial Times reported. The newspaper cited two people close to the negotiations who said Alstom’s acceptance of the GE bid would not preclude a counter offer. The people added that GE is aware that it still needs to address concerns that the French government has regarding employment at Alstom. The Alstom board accepted GE’s all-cash bid for its energy unit last night, 29 April.

Siemens, a listed German engineering group, has indicated that it will submit a formal bid for GE, the item noted. Siemens said in a letter to Alstom yesterday that any formal bid would depend on the German group being allowed to conduct due diligence on the French company over a period of four weeks. The item went on to cite a person close to the talks who said Siemens’ letter was more specific than a letter sent by Siemens CEO Joe Kaeser to Alstom Chief Executive Patrick Kron on Saturday.

Meanwhile, a report from French magazine Le Nouvel Observateur claimed that listed French state-owned energy group EDF could play a part in the “rescue” of Alstom from foreign hands. The report added that the government could sell part of its 84% stake in EDF, raising about EUR 6bn: half of the money would be used to acquire the 29% shareholding owned by Bouygues in Alstom, while the other half would finance the recapitalisation of Alstom. The report cited a labour union member as saying that the EDF scenario was not mentioned during a meeting yesterday, Tuesday with French Economy Minister Arnaud Montebourg, information that was also denied by the Finance Ministry.
The report went on to say that the government would need time to work on such a solution, and is pressing Alstom to delay the negotiations with its potential buyers.

Another report from French news magazine Le Point cited a person familiar with the matter as saying that the government is planning to refer the Alstom matter with the French stock market regulator AMF. The source added that the government wants to make sure that the sale process is “non-discriminatory, transparent, and open”.

German daily Der Tagesspiegel said Swiss industrial group ABB could become the third player in the situation, quoting ABB Chief Ulrich Spiesshofer as stating he is observing the situation.


Source Financial Times, Le Nouvel Observateur, Le Point

>>> Scania: Investor could accept Volkswagen's offer if new information comes to

Scania: Investor could accept Volkswagen's offer if new information comes to light in conjunction to offer results 

Investor, the Swedish investment company, could accept Volkswagen’s offer for the remaining shares in Scania, Dagens Industri reported.

The Swedish business daily reported Investor owns 0.4% of the shares in the Swedish truck maker and recently announced that it has decided to reject Volkswagens offer based on the recommendation of Scania’s independent committee.

However, the paper cited Investor's spokesperson, Stefan Stern, who commented that the company may decide to change its decision after the results of the offer have been announced based on new information which may come forth at that time.

The paper reported the results for Volkswagen’s offer are expected to be released today after the German auto giant announced yesterday that the results and other decisions would be announced shortly.

The item added the general market consensus is that the offer will either succeed or Volkswagen will extend the offer period. An increased offer is also seen as possible but this move would require approval from the entire Volkswagen board and an exemption from the Swedish Securities Council, the article noted.


Source Dagens Industri

>>> What to look at today - 30/04/2014

US MArket closed higher, better numbers in the energy sector fueled the perfomance, staples & uitilities posted some relative los...Volume were in line with average daily volu2 724 mil shares...After Hours on Earnings TWTR -11%, EBAY-4.5%, STX-1%...BOJ policy decision contained no update on economic assessment or accompanying statement, which is typical on the day when the central bank announces its Semiannual Outlook for Economic Activity and Prices. In another unanimous decision, BOJ maintained its annual pace of monetary base increase at ¥60-70T...A report from China Academy of Social Sciences offered a more cautious forecast for 2014 GDP of 7.4% than the official govt and the most recent IMF
target of 7.5%. A separate note from CASS researcher warned growth could slow to as low as 7.0%. Also of note, Xinhua press citing vice premier Ma reported policymakers may struggle to complete rail construction goal in 2014.

Eur$ 1.3810 S&P Fut -0.21% European Fut -0.35%

Keep an eye on :
- AF FP : Air France 1Q Rev., Net Loss Miss Ests.; 2014 Outlook Confirmed
- AKER NO : Aker Solutions 1Q Net NOK306m vs Est. NOK445m; Backlog NOK55.6b, Aker Solutions to Split Into 2 Cos.; Spinoff of New Co. Planned
- ALO FP : Alstom Says GE Offers EU12.35B for Energy Businesses, GE Says Alstom Deal to Be Immediately Earnings Accretive
- ALO FP : French Regulator AMF Wants Alstom to Resume Trading Tomorrow
- AZN LN : Pfizer CEO Warns U.K. Not to Interfere in AstraZeneca Bid: FT
- BAYN GY : Bayer Said to Offer Assets to Sweeten Bid for Merck OTC Unit
- BBVA SM : BBVA 1Q Net EU624 Mln; Analyst Est. EU623.4 Mln
- BNP FP : BNP Paribas 1Q Net Income Beats Estimates on Fortis Buyout
- BP/ LN : BP Awards $1.8b Azerbaijan Shah Deniz Phase 2 Natgas Contract
- BVI FP : Bureau Veritas 1Q Rev. EU929.4m vs Est. EU951.2m
- DAI GY : Daimler 1Q Profit, Rev. Beats Est.; 2014 Forecast Confirmed
- DSV DC : DSV 1Q Profit Misses Analyst Ests.; Outlook Maintained
- EXM BB : Exmar 1Q Net $14.2m vs Est. $10m; Profit Includes $4.4m Gain
- GLEN LN : Glencore Xstrata May Sell Port Kembla Coal Stake: AFR
- HOIL LN : to be bought by Al MIRQAB Capital for 320/sha
- JAZ SM : Jazztel 1Q Net EU15.8 Mln Vs EU12.1 Mln a Year Earlier
- JMT PL : Jeronimo Martins 1Q Net EU62m Vs. Est. EU64.2m
- LUX IM : Luxottica 1Q Rev., Oper. Inc. Miss Ests.
- MC FP : LVMH Buys Singapore Restaurant Chain for $100m: Business Times
- MAU FP : Maurel & Prom 1Q Revenue EU149m Rises 15% Y/y
- MHG NO : Marine Harvest 1Q Operational Ebit NOK1.09b Vs NOK482m Yr Ago
- NHY NO : Norsk Hydro 1Q Sales Rise More Than Est.; Sees Mkt Improvement
- NOVN VX : Novartis Drug Wins FDA Approval to Treat Late-Stage Lung Cancer
- NXI FP : Nexity 1Q Rev. EU504.6m vs EU586.5m Y/y
- NYR BB : Nyrstar 1Q Zinc Mining Output Rises 6% Y/y to 73,000 Tons
- ORP FP : Orpea Lifts 2014 Sales Target to EU1.93B After Silver Care Buy
- OSR GY : Osram 2Q Sales Drop; Confirms Forecast, Sales Target Challenging
- RAND NA : Randstad 1Q Rev. Matches Estimate; Confident Growth to Continue
- RENE PL : REN Says Shareholder Botton Cuts Stake in Co. to 7.8%
- RR/ LN : Siemens Said to Be in Talks to Buy Rolls-Royce Energy Assets, Rolls-Royce Confirms It Is in Talks With Siemens
- RXL FP : Rexel 1Q Net Income EU43.2m, Est. EU48m
- SAN FP : Sanofi Said to Explore $7b-$8b Drug Portfolio Sale: Reuters {http://reut.rs/1krLo6k}
- SHBA SS : Handelsbanken 1Q Net Income Beats Est.; NII Misses
- SAA1V FH : Sanoma 1Q Profit Beats, Sales Miss Ests.; Keeps 2014 Forecast
- SRP LN : Serco Recovery Likely to Take Time, Goldman Says; Cuts to Sell
- FLY FP : Unibail Sells 7.25% Stake in Societe Fonciere Lyonnaise
- SGO FP : Saint-Gobain 1Q Sales Beat Est.; Outlook Unchanged
- SIE GY : Siemens Said to Be in Talks to Buy Rolls-Royce Energy Assets
- STMN SW : Straumann 1Q Rev. Beats Est.; Maintains 2014 Forecast
- SY1 GY : Symrise Raised at Goldman on Growth Boost From Diana Purchase
- TEL2 SS : Tele2 Enters Into National Roaming Agreement With Telenor Norway
- TEMN SW : Temenos 1Q Rev. Misses Est., EPS Matches Est.
- TLW LN : Tullow Keeps 2014 Production Guidance; Sells Gas Assets to Faroe
- FP FP : Total 1Q Adj. Net $3.3b vs Est. $3.39b; Dividend EU0.61/Share
- HO FP : Thales 1Q Sales Unchanged Y/y, Beat Ests.; Confirms 2014 Targets
- DG FP : France May Tax Highways if Eco-Tax is Dropped, Parisien Says

>>> BRokers Upgrades & Downgrades - 30/04/2014

>>> Up
*DATRON RAISED TO BUY VS HOLD AT BANKHAUS LAMPE
*DEUTSCHE TELEKOM RAISED TO BUY AT JEFFERIES
*MICRO FOCUS RAISED TO BUY VS ADD AT NUMIS
*NATIONAL BANK OF GREECE RAISED TO NEUTRAL AT MEDIOBANCA
*NORDEA RAISED TO BUY AT SEB
*ORANGE RAISED TO EQUALWEIGHT VS UNDERWEIGHT AT BARCLAYS
*PREMIER FOODS RAISED TO NEUTRAL VS SELL AT UBS
*SWISS RE RAISED TO OVERWEIGHT AT MORGAN STANLEY
*SYMRISE RAISED TO BUY VS NEUTRAL AT GOLDMAN
*WIRECARD RAISED TO BUY VS HOLD AT BANKHAUS LAMPE

>>> Down
*ARM HOLDINGS CUT TO NEUTRAL VS BUY AT CITI
*ABB CUT TO NEUTRAL VS BUY AT BOFAML
*MUNICH RE CUT TO EQUALWEIGHT AT MORGAN STANLEY
*SERCO CUT TO SELL VS NEUTRAL AT GOLDMAN
*UMICORE CUT TO HOLD FROM BUY AT ING

>>> PT Changes
*AMPLIFON PT RAISED TO EU4.7 VS EU4.1 AT CITI; KEPT AT NEUTRAL
*UMICORE PT CUT TO EU35 FROM EU37 AT ING
*Whitbread PT Raised to 4,500p vs 3,700p at Raymond James

>>> Initiation
*ARYZTA REINITIATED AT BUY AT KEPLER CHEUVREUX; PT CHF90

>>> Call
>> Stock
*KRONES, LEGRAND REMOVED FROM UBS’S MOST PREFERRED LIST

RTR - Sanofi explores $7 billion-plus drug divestiture - sources

Sanofi explores $7 billion-plus drug divestiture - sources {http://reut.rs/1krLo6k}
(Reuters) - Sanofi SA is looking to sell a portfolio of mature drugs that could fetch between $7 billion and $8 billion, according to people familiar with the matter, yet another example of drugmakers trying to shed non-core assets and focus on high-growth areas.

The French pharmaceutical company is working with Evercore Partners Inc and has contacted potential buyers in the past few months, the people said on Tuesday, asking not to be named because the matter is private.

The drugs for sale include treatments for high blood pressure and cardio-metabolic diseases and have roughly $3.7 billion in combined annual revenue, one of the people said. The portfolio could fetch up to two times that amount, the person added.

Generic drugmakers and specialty pharmaceutical companies are seen as logical buyers for the Sanofi drug portfolio, said the people familiar with the matter.

Sanofi could not be immediately reached for comment, while Evercore declined to comment.

FT : BoJ defies calls for additional easing

BoJ defies calls for additional easing

Bank of Japan Gov. Haruhiko Kuroda heads to a meeting at the headquarters of Bank of Japan in Tokyo, Wednesday, April 30, 2014. Japan's central bank was meeting Wednesday to assess the status of the country's economic recovery, as monthly data showed industrial output and wage growth falling short of expectations.©AP
The Bank of Japan kept its policy settings on hold on Wednesday, defying calls from some quarters to take additional action to offset the impact of Japan’s rise in consumption tax, the first in 17 years.
At the one-day monetary policy meeting, the second in April, the BoJ elected to keep buying as many long-term government bonds as necessary to pump up the monetary base at an annual pace of about Y60-70tn ($586bn-$684bn), in pursuit of its 2 per cent target for inflation.

Attention now switches to the bank’s outlook for economic activity and prices, to be published at 3pm on Wednesday.
In January, the BoJ projected that core consumer price inflation would average 1.3 per cent in the current fiscal year beginning in April, as the index heads towards 2 per cent in the latter half of the year.
Should the BoJ revise up to 1.5 per cent or higher, it would imply that it is not anticipating much of a slump in CPI in the wake of the tax increase, which took effect on April 1. But if it leaves the forecast unchanged or moves to 1.4 per cent, it could signal to the market that it is expecting CPI to dip – perhaps strengthening expectations of another shot of easing in coming months.
BoJ governor Haruhiko Kuroda has made no substantive changes to the size or the scale of the bank’s easing programme – dubbed “qualitative and quantitative easing,” or QQE – since it was set out in April 2013.
Yet some economists and advisers to Shinzo Abe, prime minister, have argued that extra measures are needed to insulate the economy against the impact of the tax rise, the first of two increases designed to narrow Japan’s vast budget deficit.
Recent data suggests that the world’s third-largest economy is experiencing a slowdown. The Markit/JMMA purchasing managers’ index, also released on Wednesday, showed that manufacturers’ output dipped below 50 in April – signifying contraction – for the first time since February 2013.
New export orders also dropped to the lowest levels in more than a year. That could be a particular concern for the government, which had been counting on an improved trade picture to offset a drop in consumer demand after the tax rise.
Economists currently expect real gross domestic product in Japan to shrink by an annualised 3.4 per cent in between April and June, before resuming growth of 2 per cent in the third quarter and 1.7 per cent in the last three months of 2014.

>>> Asian Update

Asian Market Update: BOJ unanimous in keeping policy unchanged, market awaits outlook on growth/inflation; Japan wage inflation accelerates while manufacturing slumps

***Economic Data*** - (JP) BANK OF JAPAN (BOJ) POLICY STATEMENT: REITERATES TO INCREASE MONETARY BASE AT ANNUAL PACE OF ¥60-70T (AS EXPECTED) - (JP) JAPAN MAR LABOR CASH EARNINGS Y/Y: 0.7% V 0.1%E (two years high) - (JP) JAPAN APR MARKIT/JMMA MANUFACTURING PMI: 49.4 V 53.9 PRIOR (1st contraction in 14 months) - (JP) JAPAN MAR VEHICLE PRODUCTION Y/Y: 14.0% V 7.1% PRIOR - (JP) JAPAN MAR PRELIM INDUSTRIAL PRODUCTION M/M: 0.3% V 0.5%E, Y/Y: 7.0% V 7.2%E - (AU) AUSTRALIA MAR PRIVATE SECTOR CREDIT M/M: 0.4% V 0.4%E; Y/Y: 4.4% V 4.5%E - (NZ) NEW ZEALAND MAR MONEY SUPPLY M3 Y/Y: 5.0% V 6.9% PRIOR - (NZ) NEW ZEALAND APR ANZ ACTIVITY OUTLOOK: 52.5 V 58.2 PRIOR; ANZ BUSINESS CONFIDENCE: 64.8 V 67.3 PRIOR - (NZ) NEW ZEALAND MAR BUILDING PERMITS (incl apartments) M/M: 8.3% V 2.0%E - (KR) SOUTH KOREA MAR INDUSTRIAL PRODUCTION M/M: 0.9% V 1.0%E; Y/Y: 2.7% V 3.7%E - (KR) SOUTH KOREA MAR CYCLICAL LEADING INDEX CHANGE Y/Y: -0.3% V -0.1% PRIOR - (KR) SOUTH KOREA MAY MANUFACTURING BUSINESS SURVEY: 86 V 86 PRIOR; NON-MANUFACTURING SURVEY: 74 V 73 PRIOR - (SG) SINGAPORE MAR MONEY SUPPLY M1 Y/Y: 6.9% V 7.8% PRIOR; M2 Y/Y: 2.0% V 2.4% PRIOR - (SG) SINGAPORE MAR CREDIT CARD BAD DEBTS: 21.8M V 19.8M PRIOR; CREDIT CARD BILLINGS: 3.7B V 3.1B PRIOR - (SG) SINGAPORE Q1 PRELIM UNEMPLOYMENT RATE: 2.1% V 1.8%E - (TW) TAIWAN Q1 PRELIM GDP Y/Y: 3.0% V 3.0%E

Market Snapshot (as of 03:30 GMT): - Nikkei225 +0.2%, S&P/ASX -0.1%, Kospi +0.1%, Shanghai Composite +0.1%, Hang Seng -1.1%, Jun S&P500 -0.1% at 1,869, Jun gold -0.2% at $1,294, Jun crude oil -0.8% at $100.47/brl

***Highlights/Observations/Insights*** - Top-tier names reporting results after the close of the US trading session are all trading down, boding poorly for "momentum stocks" ahead of the Wednesday open. Arguably the most high-profile company to post Q1 was Twitter, falling over 11% afterhours despite doubling its revenue and also raising its guidance for FY revenue. Investors were largely disappointed with the 25% user growth despite the upbeat management commentary, sending shares below its all-time lows around $38/shr. eBay beat on top and bottom line but booked a $6B charge and also guided Q2 EPS below consensus. Seagate is down modestly in extended session as revenue missed marginally, while the conference call guidance of at least $3.30B v $3.37Be was seen as somewhat conservative.

- A broad set of economic data from Japan painted a mixed picture going into the crucial BOJ update on inflation and growth projections and subsequent commentary by Gov Kuroda after Tokyo close. Labor cash earnings - a closely covered gauge of consumer "cost-push" inflation intended to lead to higher salaries - finally accelerated at a 2-year high rate, giving cabinet officials the strongest evidence of a "virtuous cycle" engineered by the ultra-aggressive Abenomics policies. The more recent Markit manufacturing PMI figure for April disappointed however, falling into its 1st contraction in over a year. Both Output and New Export Orders subindices were also in contraction, with some of the slowdown likely anticipated by the higher sales tax. - BOJ policy decision contained no update on economic assessment or accompanying statement, which is typical on the day when the central bank announces its Semiannual Outlook for Economic Activity and Prices. In another unanimous decision, BOJ maintained its annual pace of monetary base increase at ¥60-70T.

- A report from China Academy of Social Sciences offered a more cautious forecast for 2014 GDP of 7.4% than the official govt and the most recent IMF target of 7.5%. A separate note from CASS researcher warned growth could slow to as low as 7.0%. Also of note, Xinhua press citing vice premier Ma reported policymakers may struggle to complete rail construction goal in 2014.

***Fixed Income/Commodities/Currencies*** - (AU) Australia MoF (AOFM) sells A$700M in 3.25% 2025 Bonds; avg yield: 4.0311%; bid-to-cover: 4.87x - SLV: iShares Silver Trust ETF daily holdings fall to 10,178 from 10,282 tonnes (first decline since Apr 2nd) - (US) API PETROLEUM INVENTORIES: CRUDE: +3M (4th consecutive build) v +2Me, GASOLINE: -50K v -0.5Me, DISTILLATE: +690K v +0.5Me - USD/CNY: (CN) PBoC sets yuan mid point at 6.1580 v 6.1556 prior setting (1st weaker CNY setting in 6sessions)

***Equities*** US markets: - RFMD: Reports Q4 $0.12 v $0.10e, R$256M v $251Me; +6.6% afterhours - CHRW: Reports Q1 $0.63 v $0.62e, R$3.14B v $3.20Be; +3.6% afterhours - FISV: Reports Q1 $0.82 v $0.74e, R$1.23B v $1.21Be; +3.1% afterhours - MAR: Reports Q1 $0.57 v $0.51e, R$3.29B v $3.29Be; 200K rooms in pipeline +35% y/y; +1.2% afterhours - RVBD: Reports Q1 $0.24 v $0.23e, R$266M v $265Me; -0.8% afterhours - STX: Reports Q3 $1.34 v $1.26e, R$3.41B v $3.42Be; Guides Q4 Rev at least $3.3B v $3.37Be; GM about 28.0% v 28.5% q/q; Unit demand to be down a few pts - conf call; -0.9% afterhours - X: Reports Q1 $0.34 v $0.34e, R$4.45B v $4.58Be; -2.1% afterhours - ACE: Reports Q1 $2.27 v $2.13e, R$3.97B v $4.14Be; -2.3% afterhours - EBAY: Reports Q1 $0.70 v $0.67e, R$4.26B v $4.22Be; takes charge to repatriate $6B in foreign earnings; -4.3% afterhours - PNRA: Reports Q1 $1.55 v $1.52e, R$605M v $601Me; -4.4% afterhours - ESRX: Reports Q1 $0.99 v $1.01e, R$23.7B v $23.5Be; -5.6% afterhours - USNA: Reports Q1 $1.15 v $1.31e, R$182.4M v $187Me; Share Repurchase Authorization increased to $200M (18% of market cap); -7.0% afterhours - TTS: Reports Q1 $0.09 v $0.12e, R$64.4M v $68.0Me; -7.1% afterhours - TWTR: Reports Q1 $0.00 v -$0.03e, R$250M v $237Me; -11.2% afterhours - VPRT: Reports Q2 $0.24 v $0.59e, R$286.2M v $310Me; -15.8% afterhours - AUXL: Cuts FY14 Net guidance to loss $15M to flat vs $45-50M prior, cuts Rev guidance to $380-420M v $483Me ($450-490M prior); -21.6% afterhours

Notable movers by sector: - Consumer staples: Woolworths Ltd WOW.AU -2.4% (Q3 results); Inner Mongolia Yili Industrial Group 600887.CN +6.2% (FY13 results) - Consumer discretionary: Alps Electric 6770.JP +4.4% (FY13/14 results) - Financials: China CITIC Bank 998.HK -1.7% (Q1 results); CITIC Securities 6030.HK -1.7% (Q1 results); ICBC 1398.HK -1.3% (Q1 results); Bank of Communication 3328.HK -1.4% (Q1 results); Shanghai Pudong Development Bank 600000.CN +0.8% (plans to issue preferred shares) - Materials: Aluminum Corp of China 2600.HK -1.7% (Q1 results); Shandong Chenming Paper Holdings 1812.HK -5.8% (Q1 results); Nippon Steel & Sumitomo Metal Corp 5401.JP +1.1% (speculation on FY13/14 results); Tokuyama 4043.JP -2.8% (FY13/14 results); Sanyo Chemical 4471.JP -2.8% (FY13/14 results) - Energy: China Oilfield Services 2883.HK -1.8% (Q1 results) - Technology: Alpine Electronics 6816.JP -5.7% (FY13/14 results) - Industrials: China State Construction Engineering 601668.CN +1.0% (Q1 results); China Railway Corp 390.HK -1.1% (Q1 results) - Healthcare: Shanghai Fosun Pharmaceutical 2196.HK +2.8% (Q1 results) - Utilities: Huadian Power International 1071.HK +3.2% (Q1 results)