>>> Xavier Niel to buy Monaco Telecom for up to $450m


Xavier Niel to buy Monaco Telecom for up to $450m

French billionaire Xavier Niel is nearing a deal to personally acquire Monaco's largest telecoms company for as much as $450m from Cable and Wireless Communications, the UK-listed group.
As Daniel Thomas and Anne-Sylvaine Chassany report, the deal is in the final stages of negotiations and could be announced this week, according to two people familiar with the situation.
One person said that the acquisition would be a personal investment for Mr Niel, rather than through Iliad or Free, the telecoms businesses that he owns in France.
Another person close to the discussions added that Mr Niel had been attracted to the business given the wealthy profile of the consumer in Monaco, which is becoming haven for wealthy expats from eastern Europe as well as its traditional residents from the French elite.
Monaco Telecom, which is part owned by the principality, is the main provider of mobile, fixed line, broadband and pay TV services.
Mr Niel has been looking to buy telecoms businesses in Europe for his personal investment portfolio separated from Iliad. He teamed up with Goldman Sachs in 2011 to attempt to buy the Swiss business owned by Orange, although was eventually outbid by Apax.
For Cable and Wireless Communications (CWC), the sale will mark the final part of a wider disposal process to refocus the group on the Caribbean and Central American region.
The deal will be the first major decision to be taken by recently joined chief executive Phil Bentley, who arrived from British Gas with a mandate to take the 140-year-old business into the next stage of its development.

>>> Fortinet: Color on Quarter

Fortinet: Color on Quarter

  • Needham raises CY14 to $0.48/$707 mln from $0.46/$690 mln and CY15 to $0.59/$803 mln from $0.57/$784 mln. States that Fortinet reported strong results, with revenue and EPS both coming in above consensus estimates. Guidance for JuneQ was roughly in-line, yet the formal outlook for CY14 remains "directional" and firm questions how much visibility FTNT has. Billings performance in MarQ of +26% y/y was well above guidance, and driven by strong product revenues; investors may focus on why the strong license performance in MarQ did not seem to drive strong deferred growth (dragging subscriptions along with appliances). Firm remains cautious given volatility of service provider vertical and management's reluctance to offer clear full-year guidance. Maintain Hold rating.
  • FBR raises tgt to $28 from $27 (23x firm's FY15 FCF est) to reflect increased confidence in co's long-term growth story and more stabilized execution in the field. While it has been a roller coaster ride for Fortinet (and its investors) over the past year, it appears co is clearly on a smoother growth path for 2014 and beyond as a strong product cycle, better execution, and a robust pipeline are setting the stage for "the comeback kid of security software" to capitalize on a fertile security market. While some investors may be frustrated by co's ramped up investment trajectory, FBR views this as near-term pain for long-term gain in hopes of reaccelerating license growth on the heels of a larger sales force and channel presence.

(Le Figaro) Only Alstom "energy" activities of interest General Electric

Only Alstom "energy" activities of interest General Electric
Link to Google Translation : {http://bit.ly/1icgbVc}
Link to original in French : {http://bit.ly/1psYWnn}


A major operation goes well take place between Alstom and General Electric, as explained in Bloomberg this morning. However, the discussions would focus exclusively on Alstom "energy" activities, not on transport.
ADVERTISING

The French energy giant and Transport Alstom will lose a large part of its activities. Thursday morning, the American press agency Bloomberg said that the U.S. giant General Electric was about to launch a takeover bid for Alstom .In fact, the discussions would focus exclusively on the activities of the French energy group, according to information obtained by the BBC. Gas turbines, coal, distribution, offshore wind: these activities account for over 70% of total turnover of Alstom, which exceeds 20 billion euros. The transportation industry, which includes manufacturing TGV, remain listed independently.
Disposal of assets
This scheme allowed Alstom to publish a statement in which he says "being informed of any proposed public offer for its capital." And indeed, there should be no public offering, but a simple transfer of assets. The group said on May 7, he will "point on the prospects of its various activities," on the occasion of the publication of its annual results. The time will probably be ideal to discuss this proposed sale.
Governments have reacted cautiously. Thursday morning, the Prime Minister, Manuel Valls, said that France is attentive "to jobs, technology and policy center." Therefore no strong opposition. General Electric will be more credible in the eyes of the government that already has a global competence center in Belfort, in the field of gas turbines. Inherited a treasury center industry in 1999 to a company called ... Alstom.

>>> US Gapping down

Gapping down

In reaction to disappointing earnings/guidance: QDEL -9.2%, CLB -5.5%, XLNX -5.4% (also downgraded to Neutral from Outperform at Credit Suisse), FIO -4.4%, QCOM -4.3%, CAB -3.5%, (light volume), IM -3.4%, (light volume), HZO -3.4%, (light volume), GHL -3.3% (light volume), CBI -3.2%, MKSI -3%, BTU -2.4%, SPNC -2.2%, (light volume), RTN -2.2%, TYL -1.8%, UAL-1.8%, ALGN -1.8%, TSCO -1.6%, UN -1.5%, UPS -1.4%, MMM -1.4%, KFN -1.3% (light volume), FLS -1.2%, (light volume), UL -0.8%, JBLU -0.8%, NVS -0.7%, SYK -0.3%, CAM -0.3%, ORLY -0.2%, EFX -0.1%.

Metals/mining stocks trading lower: SLV -2.1%, GG -2.1%, EGO -1.5%, AUY -1.5%, SLW -1.5%, IAG -1.4%, GOLD -0.7%, GLD -0.5%, .

Other news: HEAR -17.7% ( announces ~ $45 mln common stock offering), TNP -11.3% (Announces Public Offering of 11 mln Common Shares), EROC -7.2% (announces suspension of distribution; intent to resume following close of midstream contribution transaction), SINA -4.3% (checking around), ADES -3.7% (discloses restatement and provides update on accounting review and business segments), ALTR -2.8% (following XLNX results), YGE -2.1% ( announces proposed follow-on public offering of 25 mln ADSs), AGIO -1.8% (announces pricing of 2 mln share public offering of common stock at $44 per share), YY -1% (despite Maxim initiation with Buy; still checking), NSLP -0.6% (announces pricing of upsized public offering of 3 mln common units at $23.25 per unit).

Analyst comments: GOLD -0.9% (Randgold Resources downgraded to Neutral from Overweight at HSBC)

>>> US Gapping up

Gapping up
In reaction to strong earnings/guidance: ZMH +11.4%, ( to Combine with Biomet in Transaction Valued at $13.35 bln; expected to be double-digit accretive to Zimmer's adjusted diluted earnings per share in the first year), STC +9.7%, (light volume), ANGI +9.2%, INFN +7.7%, AAPL +7.3% (upgraded at Credit Agricole), TQNT +6.5%, ALXN +6.4%, FFIV +6.2%, FB +5.6%, ZNGA +5.4%,FTNT +5.3%, AZN +5.2%, CTXS +4.9%, (announces proposed private offering of $1.25 bln Convertible Senior Notes due 2019), AET +4.8%, LRCX +4.7%, ASGN +4.4%, TXN +3.9%, CAT +3.5%, ETFC +3.3%, YNDX +3.3%, HDSN +3.2%, (thinly traded), NOW +3.2%, PDH +3.2%, (light volume), MJN +3.1%, (light volume), DHI +3%, PTC +2.7%, (light volume), AAL +2.5%, UA +2.1%,ELY +2%, CRR +2%, UAL +2%, SYA +1.8%, POT +1.8%, DLPH +1.8%, GM +1.8%, LOGI +1.5%, SWY +1.4%, (light volume), VZ +0.5%, DO +0.5%.

M&A related: GE +0.5% (considering Alstom takeover, according to reports out; Alstom has since denied speculation).

AAPL related tech names trading higher: CRUS +6.1%, GTAT +2.7%... Social media names higher with FB: TWTR +1.2%, LNKD +0.5%... Machinery/ag names trading higher following CAT results: TEX +2.3%, MTW +2%, CMI +0.4%

Other news: BODY +12.6% (announces review of Strategic Alternatives), VLCCF +9.3% (Knightsbridge Tankers Ltd and Frontline 2012 announced they have agreed to combine Frontline 2012's remaining fleet of 25 fuel efficient vessels with Knightsbridge), CLSN +7.5% (announces updated overall survival results from the HEAT study of ThermoDox in primary liver cancer presented at ECIO 2014; latest data sweep from large subgroup of patients shows a strong 50% improvement in overall survival for ThermoDox), RFMD +5.7% (following TQNT results), GWPH +4.3% (continued strength), PANW +4% and FEYE +1.6% (FTNT sympath), BLDP +3.8% (still checking), YELP +2.6% / TRLA +2.7% (following ANGI results), TSLA +1.9% (reports indicate co is hiring for Cali plant), SNN +1.6% ( following ZMH / Biomet deal), DDD +1.5% (still checking), BP +1% (still checking), MU +1% (positive MadMoney mention), QIHU +0.8% (Qihoo 360 Tech. forms strategic partnership with Sungy Mobile (GOMO) to target international expansion), AMGN +0.6% (Phase 3 DECISION Trial of NEXAVAR (sorafenib) in thyroid cancer refractory to radioactive iodine published in The Lancet), C +0.6% (Citigroup Board approves $1.165 bln common stock repurchase program).

Analyst comments: GT +5.1% (added to Conviction Buy list at Goldman), CIEN +3.6% ( upgraded to Buy from Neutral at UBS), AIXG +3.3% (upgraded to Neutral from Underweight at HSBC Securities), SMG +1.2% (upgraded to Outperform from Market Perform at BMO Capital), ERIC +0.5% (upgraded to Outperform from Market Perform at BMO Capital)

>>> KKR beats by $0.12, beats on revs

KKR beats by $0.12, beats on revs

Reports Q1 (Mar) earnings of $0.65 per share, $0.12 better than the Capital IQ Consensus Estimate of $0.53; revenues rose 100.3% year/year to $302.9 mln vs the $278.46 mln consensus.
  • Assets under management totaled $102.3 billion as of March 31, 2014, up from $94.3 billion as of December 31, 2013.
  • Fee paying assets under management totaled $83.6 billion as of March 31, 2014, up from $77.4 billion as of December 31, 2013.
  • Total distributable earnings was $446.8 million for the quarter ended March 31, 2014, up from $290.6 million for the quarter ended March 31, 2013.
  • Economic net income was $630.3 million for the quarter ended March 31, 2014, down from $647.7 million for the quarter ended March 31, 2013.
  • Return on equity was 25.9% on a trailing twelve month basis.

>>> Facebook: Color on Quarter - FB +5% Pre-Market

Facebook: Color on Quarter

  • Needham notes FB reported strong results, overdelivering consensus estimates (again), driven by global scale, margin expansion and mobile adoption. FB reported 1Q14 revenue of $2.5B (up 72% y/y and 10% above firm's estimates), and Non-GAAP EPS of $0.34 (up 172% y/y and 42% above firm's estimates). Needham is raising it's 2Q14 estimates to align with FB's comments. Firm retains BUY rating and $65 tgt.
  • Stifel Comments-Positives : 1) Revenue came in ahead of consensus estimates, and ad revenues showed the highest growth rate in nearly three years. 2) Incremental EBITDA margins were an impressive 80% and co generated over $900mn in FCF. 3) Engagement (DAU/MAU) continued to rise coming in at 62.9% vs. 61.6% in the prior quarter. Negatives: 1) CFO David Ebersman announced his resignation in the middle of a year, while offering only slight explanations. 2) While the quarter was strong the magnitude of the revenue beat was lower than it has been in the prior three quarters. 3) Management reiterated commentary from recent quarters suggesting that the growth in ad revenues will decelerate. 4) The company added only 1mn users in the U.S. and Canada. Reducing Target Price from $82 to $80.
  • FBR Capital notes FB delivered outstanding results across metrics. Results are supportive of firm's thesis of price inflection. Forward comments touched on expected ad growth moderation-widely expected and reflected in Street estimates and a function of the 2Q13 ramp-up in news feed ads. Increasing 2014 EPS estimate to $1.40 (previously $1.26) and 2015 EPS estimate to $1.89 (previously $1.67). Note estimates include acquisition share dilution and assume a mid-2Q close on Oculus and a mid-3Q close on WhatsApp. New tgt is $77 (previously $66).
  • Oppenheimer is raising price target to $79 from $70 following 1Q EBITDA 22% above Street. Upside was driven by higher monetization from direct response ads and gross margins. Improved monetization was driven by higher demand for Newsfeed ads from inventory cap. While ad revenue increased 82% y/y, we note that Newsfeed ads ramped in 2Q13, and comps will be more difficult. Raising 2014E revenue and EBITDA by 6% and 7%, respectively.
  • RBC Capita is raising 2015 Non-GAAP EPS from $1.73 to $2.14. Raises tgt to $86 from $76.Firm notes co accelerated its fundamental growth (again) from what firm saw as inflection point quarters. User growth remains robust, while engagement continues to increase. Mobile growth continues to drive Ad Revenue. The most important Internet trend by far is MOBILE, and Facebook has become a MOBILE company (Mobile now almost 60% of revenue). FB is also demonstrating nice operating leverage and Opex discipline.