(Les Echos) Alstom promises that General Electric in Holland

Alstom promises that General Electric in Holland

Link to Google Translation :{http://bit.ly/1o0pPL0}
Link to French Article : {http://bit.ly/1fNn1fk}

EXCLUSIVE DOCUMENT + U.S. conglomerate offers the French government to establish four centers of global decision GE France. It commits itself "to grow our number of jobs in France," including those "highly qualified."

Take Alstom and convince the French government in the interest of its offer, the CEO of General Electric is engaged in a real seduction operation. Two days after his appointment with François Hollande, Jeffrey Immelt sent to the Head of State a four-page letter in which he said, point by point, its commitments.
According to this letter, including "Les Echos" obtained a copy, the CEO of General Electric commits first "to do highly skilled jobs our number of jobs grow in France, particularly in the engineering and production located in the region. " If General Electric, which has already "10,000 people on French soil" does not commit to a specific number, the group knows that this is the number one criterion of the Head of State. "Compared to record, I have only this single criterion: what will be the most favorable to business creation in France and employment in France? "Had said Monday, François Hollande.

Second point that GE intends to reassure the French executive, decision-making centers, a concern that Jeffrey Immelt judge "legitimate". The U.S. group promises to settle in France "global headquarters of Grid activities (networks), Hydro, steam turbines and offshore wind." Given the importance of hydropower in France, the group says it is "ready to welcome French capital investors in this activity." A guarantee given to the government, while the competition hydroelectric concessions been a difficult debate between EDF, foreign competitors and parliamentarians.
General Electric is not present at all in turbines for hydroelectric power, or in offshore wind, where the group also undertakes "to honor the commitments and industry in terms of jobs already taken by Alstom Cherbourg and Saint-Nazaire. " Commitments made by the French supplier after winning with EDF, three of the first four fields of offshore wind and then the government must allocate two new fields in the coming days.
GE said there also willing to consider "any acquisition proposal from French investors for onshore and offshore wind Alstom activities." Very capital-intensive, the sector of offshore wind is undergoing a consolidation phase. The French rival Alstom in offshore wind, Areva, has just signed a joint venture with Spanish Gamesa.
The Belfort site, where GE has a plant steam turbines and has its European headquarters would become "the European headquarters of the thermal activity of GE." Alstom's global headquarters of this activity is now located in Switzerland, where Alstom was acquired assets ABB.
A proposed joint venture in the transport
While Siemens Tuesday proposed to the Board of Directors of Alstom to make an offer under conditions which incorporate a component in transportation, GE also provides, at the request of the government to consolidate this division, the group does not intend acquire. GE and shows have made ​​the study "Alstom with the possibility of creating a joint venture with global signaling activity of GE. " Activity perceived potential.
On the strategic nuclear sector, where Alstom is a privileged partner of EDF and Areva in France and export, GE stated that it had "heard your willingness to consider the sovereign character of the nuclear industry." The executive had indicated a desire to control "energy independence from France." Recalling already be a "reliable supplier" for the sector, "we are committed to working with the state, Areva and EDF to protect and preserve the sector's exports," promises Jeffrey Immelt.
On the form, General Electric had the desire to show that he is not happy and reminds predator Alstom picked it up. In terms of governance, GE propose to its Board of Directors, in case of success of its "host within it a French business executive leading."

FT: Barclays to create bad bank

Barclays to create bad bank

Barclays will next week announce the creation of a bad bank in a bid to transform its struggling investment banking operations, which were dealt a further blow on Tuesday with the departure of the highly regarded head of its US business.
The move to exit parts of its shrinking fixed income business and its lossmaking European branch network will be announced as part of next week’s strategic update to investors, according to people familiar with the plan. The internal bad bank will be run by Eric Bommensath, the co-head of its investment bank.

The news comes as fears intensify that the departure of Skip McGee as head of Barclays Americas will trigger an exodus of bankers acquired when the UK bank took over Lehman Brothers’ US operations during the financial crisis.
Analysts and rival bankers said his departure was a blow for Antony Jenkins, chief executive, who defended last year’s higher bonus pool in spite of falling profits as necessary to avoid a “death spiral” of bankers quitting to seek a bigger pay cheque.
The bank said Mr McGee’s departure was a result of the vast regulatory burden it faces in the US. The Texas-born dealmaker was part of the Lehman team that negotiated the sale of its US operations to Barclays in 2008 and he has been seen as pivotal in holding together the business.
Mr McGee, 54, is being replaced as head of Barclays Americas on Thursday by Joe Gold, its global head of client capital management, who the UK bank hired out of the ashes of the failed Enron energy trading empire 12 years ago.
Barclays has been under pressure from investors to cut costs and rein in pay levels while coming up with a more coherent strategy for its investment bank, which is failing to generate returns above its cost of capital.
The new non-core unit is likely to house parts of Barclays’ macro products unit, which includes the trading of interest rate-linked products, currencies and commodities. The unit suffered a 17 per cent drop in revenues last year and is facing growing pressure from new regulation that forces the bank to hold more capital against it.
It is expected to include some or all of Barclays’ retail banking businesses in France, Italy, Spain and Portugal, which it has been attempting to sell for several years. Losses from its 572 branches in continental Europe widened from £277m to £964m last year.
The bank is also expected to add the £54.4bn of assets left in businesses already identified as non-core, including leveraged loans and European corporate loans.
Mr McGee said: “My focus has always been on clients, but given the need for Barclays’ leadership to focus on regulatory issues for the foreseeable future, I have decided that it is time for me to move on to new challenges.”
Ian Gordon, analyst at Investec, said: “This is likely to be at best a precursor to musical chairs at Barclays and at worst the start of more bloodletting of senior executives in the bank.”
At its heated annual meeting last week, more than a third of investors refused to back Barclays’ remuneration report, reflecting widespread anger over its decision to increase bonuses in a year when the bank’s profits fell by more than a third.
Mr McGee, who is understood to be considering several options of what to do next, received 3.81m shares worth almost £8.9m this year from deferred bonus schemes – the highest amount received of all the senior executives at the bank.

FT: Barclays to create bad bank

Barclays to create bad bank

File photo dated 16/09/13 of a view of a branch of Barclays. The bank has spoken of its "regret" over a memo suggesting its branches switch their television channels to entertainment shows as news broke of the banking giant's pay and bonuses. PRESS ASSOCIATION Photo. Issue date: Friday March 7, 2014. The bank reportedly recommended that staff turn on E4 or lifestyle channel Really, or switch off their televisions ahead of "negative coverage" about Barclays' annual report which revealed nearly 500 staff were paid at least £1 million each last year. See PA story CITY Barclays. Photo credit should read: Dominic Lipinski/PA Wire©PA
Barclays will next week announce the creation of a bad bank in a bid to transform its struggling investment banking operations, which were dealt a further blow on Tuesday with the departure of the highly regarded head of its US business.
The move to exit parts of its shrinking fixed income business and its lossmaking European branch network will be announced as part of next week’s strategic update to investors, according to people familiar with the plan. The internal bad bank will be run by Eric Bommensath, the co-head of its investment bank.

The news comes as fears intensify that the departure of Skip McGee as head of Barclays Americas will trigger an exodus of bankers acquired when the UK bank took over Lehman Brothers’ US operations during the financial crisis.
Analysts and rival bankers said his departure was a blow for Antony Jenkins, chief executive, who defended last year’s higher bonus pool in spite of falling profits as necessary to avoid a “death spiral” of bankers quitting to seek a bigger pay cheque.
The bank said Mr McGee’s departure was a result of the vast regulatory burden it faces in the US. The Texas-born dealmaker was part of the Lehman team that negotiated the sale of its US operations to Barclays in 2008 and he has been seen as pivotal in holding together the business.
Mr McGee, 54, is being replaced as head of Barclays Americas on Thursday by Joe Gold, its global head of client capital management, who the UK bank hired out of the ashes of the failed Enron energy trading empire 12 years ago.
Barclays has been under pressure from investors to cut costs and rein in pay levels while coming up with a more coherent strategy for its investment bank, which is failing to generate returns above its cost of capital.
The new non-core unit is likely to house parts of Barclays’ macro products unit, which includes the trading of interest rate-linked products, currencies and commodities. The unit suffered a 17 per cent drop in revenues last year and is facing growing pressure from new regulation that forces the bank to hold more capital against it.
It is expected to include some or all of Barclays’ retail banking businesses in France, Italy, Spain and Portugal, which it has been attempting to sell for several years. Losses from its 572 branches in continental Europe widened from £277m to £964m last year.
The bank is also expected to add the £54.4bn of assets left in businesses already identified as non-core, including leveraged loans and European corporate loans.
Mr McGee said: “My focus has always been on clients, but given the need for Barclays’ leadership to focus on regulatory issues for the foreseeable future, I have decided that it is time for me to move on to new challenges.”
Ian Gordon, analyst at Investec, said: “This is likely to be at best a precursor to musical chairs at Barclays and at worst the start of more bloodletting of senior executives in the bank.”
At its heated annual meeting last week, more than a third of investors refused to back Barclays’ remuneration report, reflecting widespread anger over its decision to increase bonuses in a year when the bank’s profits fell by more than a third.
Mr McGee, who is understood to be considering several options of what to do next, received 3.81m shares worth almost £8.9m this year from deferred bonus schemes – the highest amount received of all the senior executives at the bank.

*DEUTSCHE BANK, 14 OTHER BANKS OUTLOOKS TO NEGATIVE BY S&P

*BARCLAYS BANK PLC OUTLOOK TO NEGATIVE BY S&P
*UBS AG OUTLOOK TO NEGATIVE BY S&P
*BANK OF IRELAND OUTLOOK TO NEGATIVE BY S&P
*DEUTSCHE BANK, CREDIT SUISSE OUTLOOK TO NEGATIVE BY S&P
*BANCA POPOLARE DELL’EMILIA OUTLOOK TO NEG FROM STABLE BY S&P
*ING GROEP N.V. OUTLOOK TO NEGATIVE FROM STABLE BY S&P
*SWEDBANK SJUHARAD RAISED TO A FROM BBB+ BY S&P, OUTLOOK STABLE
*CECABANK S.A. OUTLOOK TO POSITIVE FROM STABLE BY S&P

FT : Pfizer cautions UK ministers not to block £60bn AstraZeneca bid

Pfizer cautions UK ministers not to block £60bn AstraZeneca bid

Pfizer has thrown down a ­gauntlet to the British government by warning that it would be a mistake for ministers to block its £60bn takeover bid for AstraZeneca, as the US drugmaker steps up its pursuit of its UK rival.
“The UK faces a choice,” Ian Read, chairman and chief executive of Pfizer, told the Financial Times. “Do they focus on ensuring there is an educated workforce with the right incentives in place to attract investment or do they pick winners and losers.”

Mr Read praised the UK government for creating an attractive business environment that made Pfizer want to invest in the UK and urged ministers to keep faith in the free market to promote the country’s life sciences industry.
The Pfizer chief executive flew into London on Tuesday with his top management for talks with government ministers and AstraZeneca investors to convince them to support the biggest ever foreign takeover of a UK company.
However, the deal has prompted fears over jobs and the UK’s science base among some politicians. The company employs 7,000 people in the UK and supports thousands more jobs – many of them high-value – in an industry that the government sees as playing a key role in supporting balanced long-term economic growth.
George Osborne, chancellor, welcomed Pfizer’s proposed takeover as a big vote of confidence in Britain and its low corporate tax regime, but warned Mr Read last night that the takeover would come under intense scrutiny.
Vince Cable, business secretary, is said to be especially sceptical about claims that the bid is motivated by a desire to bolster Britain’s R&D base after Pfizer cut more than 1,500 jobs at its Sandwich facility in 2011. Both Mr Osborne and Mr Cable are insisting the deal must preserve jobs and research in the UK.
“I want to see more British science,” Mr Osborne said. “AstraZeneca have been doing a lot of that great science. Pfizer said very encouraging things about the UK as a place to do business and a place to do good science.”
Ministers have limited legal powers to block a merger, but have a number of “soft options” available if a Pfizer were to embark on an asset stripping exercise: the government provides extensive support for the sector through the tax system and direct taxpayer funding.
Mr Read refused to issue any commitments over UK jobs and investment during his round of meetings in London, arguing it was impossible to do so unless AstraZeneca agreed to sit down to discuss how a deal could work.
But he insisted the merged company would maintain a “significant” management and scientific presence in the UK as well as shifting its tax domicile to the country to escape the 38 per cent US tax rate on repatriated overseas profits.
Mr Read denied that significant tax savings were the primary motivation for the deal, pointing instead to the potential to create a “US-UK powerhouse” in medical science. But he acknowledged the importance of the “patent box” tax break on income from intellectual property, introduced by Mr Osborne, in encouraging Pfizer to make its move.
“The UK has created an environment you need to win in life sciences,” he said. “If you want to play in the long term you need to let these kind of deals go through.”
After days of rumours, Pfizer confirmed on Monday that it had approached AstraZeneca in January with an informal £46.61 per share offer, valuing the company at just under £59bn.
On Tuesday the stock fell slightly to £46.26 as AstraZeneca reiterated its stance that the January offer “significant undervalued” the company and that no talks would take place in the absence of a much improved bid. Pfizer has until May 26 to make a firm offer or walk away under “put up or shut up” takeover rules.
People close to AstraZeneca insisted that, while it would keep strategic options open, there would be no rush to explore alternative deals mooted by analysts – such as a merger of equals with another drugmaker.
“We’re keeping cool heads. Absent a significantly improved offer there is nothing to discuss. This is a company that feels very good about its strategy and does not see the need for a partner.”

NY Post : Loeb, Sotheby’s case may reshape shareholder activism

Loeb, Sotheby’s case may reshape shareholder activism

Sotheby’s and its largest investor, Daniel Loeb, will open their arguments in court on Tuesday on whether the auction house should be allowed to restrict the billionaire’s ownership stake, in a case that could reshape the world of shareholder activism.
Loeb, the head of hedge fund Third Point Capital Management who has been building a stake in Sotheby’s as he battles to win three seats on the company’s board, last month sued the 270-year-old auction house to remove its “poison pill” cap, arguing that it discriminates against activists.
Delaware Chancery Court Vice Chancellor Donald Parsons will hear arguments from both sides on whether Sotheby’s shareholder rights plan, which allows passive investors to buy as much as 20 percent in the company but caps active investors at 10 percent, is legal. A ruling is expected later in the week, ahead of Sotheby’s annual meeting scheduled for May 6.
The case could have wide implications for activist investing and corporate governance because it marks the first time that a judge will rule after an activist investor who has faced a poison pill has aired his grievances in court.
“The reason this is so important is that the idea that a pill can be used to stop an activist investor has never been approved,” said Robert Jackson, a law professor at Columbia University. “Whichever way the court rules will have lasting implications for the corporate landscape.”
Poison pills were originally designed to help companies defend against corporate raiders — the term given to investors seeking to take over a company with aggressive stock purchases — by limiting the amount of stock that can be bought.
But they have increasingly been used against activist shareholders, who seek changes to the way companies are managed, instead of vying for full control.
Air Products used a poison pill to keep William Ackman’s Pershing Square Capital Management from buying more than 10 percent in 2013, and Riverbed Technology used one against Elliott Management the same year.
The use of poison pills against activists seems to be picking up just as activists are becoming more popular in the hedge fund industry, attracting fresh money with strong returns.
This poison pill “is directed intentionally against shareholders exercising their rights,” said Marc Weingarten, a partner at law firm Schulte Roth & Zabel.
In the first three months of 2014, activist funds took in $3.5 billion in new assets, more than half of the $5.3 billion they took in for all of 2013, data from Hedge Fund Research show. Last year activist funds returned an average 16 percent, far more than the average hedge fund’s 9 percent gain.
Loeb’s $14.5 billion hedge fund Third Point gained 25.2 percent in 2013. That is the same year that he bought a 9.6 percent stake in Sotheby’s, as he compared it to “an old master painting in desperate need of restoration” and urged cost cuts, among other measures.
Lawyers who have been watching the case said there is no way to predict the outcome, in part because the courts have generally supported companies that use poison pills.
“In this case the company has good arguments on why it needs to have the pill in place and that restricting the ownership of passive investors could harm all investors,” said Keith Gottfried, a partner at law firm Alston & Bird who advises companies on shareholder activism. “Poison pills don’t prevent you from running a proxy contest.”

(Makor) Court Rejects Appeal of Club Méditerranée Buyout

ANY WEAKNESS SHOULD BE USED TO GET IN. THIS IS THE MESSAGE. THIS SCENARIO WAS THE MOST LIKELY ONE WE EXPECTED. NOW, THIS OFFER WILL FAIL. THE BUYERS MAY PLAY FOR TIME AND SEE IF THE STOCKS DROP OR NOT BELOW THE OFFER. I THINK NOT. AFTER THAT, A NEW OFFER MAY OR MAY NOT COME - EITHER WAY, CLUB MED HAS A LOT OF CATCH UP TO DO WITH THE SECTOR.

>>> Buy Remy Cointreau / Sell LVMH - set up on 17th - +8% - take profit

Pair is performing well 8% since inception, I will take half of profit here.
I still believe taht there is some upside potential but I will rather add some more if spread is coming back.

Take profit on half of it

----- Original Message -----
From: LAURENT CHEKROUN ()
To: LAURENT CHEKROUN ()
At: Apr 28 2014 09:52:43

Pair is starting to perform +3.69%, still believe there is more potential on this one, started to see some flows out of LVMH after seeing few investors jumping in onthe last few weeks playing the fact that MC will be one of the best peformers in eartning Season, but Reassuring numbers form Kering pushed some re-allocation in the sector.


----- Original Message -----
From: LAURENT CHEKROUN ()
To: LAURENT CHEKROUN ()
At: Apr 22 2014 16:04:37

Follow-Up

Still believe in this trade, RCO weak on -ve article in FT, stock is down on the day, LVMH better.

I will wait to add some more

----- Original Message -----
From: LAURENT CHEKROUN ()
To: LAURENT CHEKROUN ()
At: Apr 17 2014 10:57:05

{RCO FP Equity MC FP Equity GRT D}

* Remy Cointreau (RCO FP) - Buy
- Q4 Sales a 3% miss, Cognac still weak, we could see some more dwg to consensus EPS, but pfr story is not there anymore.
- Valuation still not cheap regarding the Cognac business but not too far from historical premium the stock is trading with the sector
- RCO is highly correlated to Luxury trend in China and most of dwg has been done
- Few weeks ago M&A rumors re-surface with a blog mentionning Brown& Forman was looking to the company, this blog was mentioning a €85/share minimum price on any deal to get the family to table.
- 55/56 appears to be a strong support.

* LVMH (MC FP) - Sell
- Numbers were published on the 9th of April, the analysis fo numbers show us that we continue to see a down trend in volume that has been so far compensated by price increase, main point of the strategy remained of potential of price increase and maintain margin.
- Stock is trading not far from historical highs (3.5%) and even if we can test this level I don't expect a major break up


Buy Remy Cointreau Sell LVMH - expecting MC to not really move and RCO to go back to the 70's levels

Laurent