FT : Private equity eyes drug brands purchase

Private equity eyes drug brands purchase

Private equity groups are exploring a $10bn plan to buy hundreds of older drug brands from GlaxoSmithKline and Sanofi and merge them, highlighting the continued intense deal activity sweeping the pharmaceuticals sector. KKR and Warburg Pincus are among those weighing bids for the GSK and Sanofi assets – and looking at a possible combination of the two portfolios, according to several people familiar with the matter. KKR and Warburg Pincus declined to comment. GSK said last week that it had received "very significant" indicative bids from private equity companies and midsized drugmakers in a portfolio of mature products with annual sales of about £1bn. Sanofi, meanwhile, is considering the sale of about 200 older drugs with annual revenues of at least €2.1bn. Those assets alone have an enterprise value of €6.3bn, according to internal Sanofi documents leaked by a labour union last month. Other private equity groups to have shown an interest in one or both of the portfolios include Blackstone, Advent, Apollo and Bain Capital, said people close to the matter. The concept of rolling the two sets of assets together is still at an early stage as Sanofi is yet to make a firm decision on what to do with its portfolio. However, work is being done by potential bidders on a potential combination, those people added. Mylan of the US and Lupin of India are among potential trade buyers to have been linked with one or both of the GSK and Sanofi businesses. Mylan this month struck a $5.3bn deal to buy a portfolio of generic drugs from Abbott Laboratories. "Private equity has not traditionally played in this area, so they will either have to bring in experts or partner with third parties who have the expertise," said Jeremy Levin, former chief executive of Teva, the Israeli generic drugmaker. For GSK and Sanofi, the potential disposals are part of efforts to streamline their businesses and refocus investment on growth areas as older drugs lose patent protection. Their so-called established product portfolios are highly profitable and cash-generative, but slow-growing. GSK and Sanofi declined to comment. The pair are being advised by Lazard and Evercore respectively.

RTR - Bodies of possible Ebola victims found in central Monr

Bodies of possible Ebola victims found in central Monrovia

MONROVIA (Reuters) - The bodies of two men previously showing symptoms of Ebola lay in the streets of Monrovia for four days before being collected by health workers on Sunday, residents told Reuters.

"They both gave up and dropped dead on the ground on the street of Clara Town," said resident Nema Red, referring to a district of the Liberian capital.

Both men had shown symptoms of Ebola such as bleeding and vomiting before they died but scared locals had refused to take them to the hospital, she added.

Information Minister Lewis Brown confirmed that the bodies had been collected, although he said they had only been there for a few hours. "I can confirm that the bodies were in the street. They have been removed," he said on Sunday.

WSJ : Major Oil Companies Should Consider Downsizing

Major Oil Companies Should Consider Downsizing

You're gonna need a smaller boat. That is the message from the latest round of results from Big Oil. Take the biggest of the supertankers, Exxon Mobil. Its stock fell 4% last week and is now the only one of the majors in negative territory for the year, on a dollar basis.
Exxon clearly isn't immune from pressures afflicting the entire sector. At just over two million barrels a day, its oil-and-liquids output in the second quarter was the lowest since the merger with Mobil in 1999. In part, that is a good thing: Exxon is prioritizing profit over volume.
But it also highlights what is wrong. Return on capital employed has collapsed. Oppenheimer estimates the average for Exxon, Chevron, Royal Dutch Shell, and BP will be less than 12% this year, a third less than 2011's level and less than half of 2008's.
Heavy spending to rebuild reserves, and get growth going again, is the culprit and Exxon defended its model on Thursday, saying this would pay off as new projects start up. The problem: With key projects such as Kashagan and Kearl not performing as planned, and even the great hope known as Russia now in question, investors aren't convinced Big Oil can deliver.
Rather than business as usual, more-radical change sets pulses racing. It is no accident the best performing stock of the major oil companies over the past five years, by a wide margin, is that of ConocoPhillips. It threw in the towel on bigness and split itself up in 2012.
Plans for spin offs and big disposals at Occidental Petroleum, Apache, Anadarko and Hess promise more bang for investors' bucks in the months ahead. Italy's Eni, meanwhile, is taking an ax to its downstream business to boost returns. Rather than just slowly turning the supertanker, major oil companies seeking approval should consider downsizing.

Italy May Seek EU20b for Budget Measures for Next Yr: Repubblica

+------------------------------------------------------------------------------+

Italy May Seek EU20b for Budget Measures for Next Yr: Repubblica 2014-08-03 15:56:27.618 GMT

By Chiara Remondini Aug. 3 (Bloomberg) -- Italy’s 2015 deficit to GDP ratio target may be increased to 2.3%, daily la Repubblica reports, citing comments by PM Matteo Renzi last week. * 2015 target may be raised even further, staying below 3% level (current target 1.8%), Repubblica says, without citing anyone * EU20b to come from measures incl. spending review, lower borrowing costs * NOTE July 12: Italy Govt Seeks EU12b of Spending Cuts for 2015: La Stampa NSN N8LCKG6JTSE8 <GO> * NOTE July 29: Italy Borrowing Costs Drop to Record at Six- Month Bill Sale NSN N9GVGS6JIJV2 <GO>

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To contact the reporter on this story: Chiara Remondini in Milan at +39-02-8064-4241 or cremondini@bloomberg.net To contact the editor responsible for this story: James Ludden at +44-20-7673-2645 or jludden@bloomberg.net

(BFW) Symrise Ready for More Buys Next Year, CFO Tells Boers


Symrise Ready for More Buys Next Year, CFO Tells Boersenzeitung
2014-08-03 09:39:41.28 GMT


By Julia Mengewein
Aug. 3 (Bloomberg) -- Co. will be financially ready for
more acquisitions early next yr after buying Diana Group for
EU1.3b this yr, Bernd Hirsch, Symrise AG CFO, tells
Boersenzeitung in interview.
* No plans for consolidation with other large peers from
scents, fragrance industry: Hirsch
* NOTE: Symrise Says Completed Purchase of Diana Group NSN
N9GYDC6JTSEF<GO>

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First Word scrolling panel: FIRST <GO>
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To contact the reporter on this story:
Julia Mengewein in Frankfurt at +49-69-9204-1426 or
jmengewein@bloomberg.net
To contact the editor responsible for this story:
Lars Paulsson at +44-20-7673-2759 or
lpaulsson@bloomberg.net

(BFW) France May End Pharmacy Monopoly on Selling Some Drugs


France May End Pharmacy Monopoly on Selling Some Drugs, JDD Says
2014-08-03 10:11:00.655 GMT


By Tara Patel
Aug. 3 (Bloomberg) -- French consumers could save an
estimated EU327m on medications like paracetamol and cough
syrups now sold only in pharmacies, Journal du Dimanche
newspaper reports, citing a finance ministry study.
* French government study says some prices could drop as much
as a fifth: JDD
* Pharmacy changes to be part of wider deregulation in
healthcare industry due to high profit margins: Newspaper


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To contact the reporter on this story:
Tara Patel in Paris at +33-1-5365-5058 or
tpatel2@bloomberg.net
To contact the editors responsible for this story:
Mike Harrison at +44-20-7073-3564 or
mharrison5@bloomberg.net
V. Ramakrishnan

(BFW) China July Non-Manufacturing PMI Falls to 54.2 From 55


BFW 08/03 00:59 *CHINA JULY NON-MANUFACTURING PMI AT 54.2; JUNE 55.0
China July Non-Manufacturing PMI Falls to 54.2 From 55 in June
2014-08-03 01:02:55.472 GMT


By Bloomberg News
Aug. 3 (Bloomberg) -- China’s non-manufacturing purchasing
managers’ index fell to 54.2 in July from a previously reported
55.0 in June.
* The number was given in a statement released today by the
Beijing-based National Bureau of Statistics and the China
Federation of Logistics and Purchasing
* A reading above 50 indicates expansion
* NOTE: The PMI is based on data compiled from replies to
questionnaires sent to purchasing executives of 1200
companies in 27 non-manufacturing industry categories.
* Link to statement:
http://www.cflp.org.cn/lhhkx/201408/03/292349.shtml
* NOTE: For more China PMI data see {ALLX CPMI <GO>}



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To contact Bloomberg News staff for this story:
Sarah Chen in Beijing at +86-10-6649-7727 or
schen514@bloomberg.net

To contact the editor responsible for this story:
Nerys Avery at +86-10-6649-7558 or
navery2@bloomberg.net

(BFW) Telefonica May Have Hired Banks for GVT Bid, Repubblica Reports

--> +ve Vivendi....Finally a bid could come
Telefonica May Have Hired Banks for GVT Bid, Repubblica Reports
2014-08-02 08:46:03.699 GMT


By Chiara Remondini and Daniele Lepido
Aug. 2 (Bloomberg) -- Telefonica SA may have hired banks to
prepare bid for GVT, Italian newspaper la Repubblica reports,
without saying how it got information.
* Telefonica may make offer to oppose possible Telecom Italia
SpA bid for GVT
* NOTE July 29: Telecom Italia Plans Possible GVT Alliance,
Economista Reports NSN N9GLB96S972T <GO>
* NOTE July 18: Tim Says It Isn’t in Talks W/ Oi Or GVT NSN
N8XETH6JTSEA <GO>


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To contact the reporter on this story:
Chiara Remondini in Milan at +39-02-8064-4241 or
cremondini@bloomberg.net
To contact the editor responsible for this story:
James Ludden at +44-20-7673-2645 or
jludden@bloomberg.net

WWD : P&G to Cut Half its Brands

P&G to Cut Half its Brands

After a disappointing year, consumer products giant The Procter & Gamble Co. is cutting way back with plans to eliminate at least half of its 160-brand portfolio.

A.G. Lafley, chairman, president and chief executive officer, who retook control of the company in May, said P&G delivered on its financial commitments for the year ended June 30, but “could have and should have done better.”

The overall company saw earnings from continuing operations rise 4 percent to $11.71 billion on a 1 percent gain in sales, to $83.06 billion.

“Delivering a better year was solely in our influence and control," said Lafley on a conference call, noting that sales could have risen much faster, at 4 percent.

While shying away from specifics on which brands will be cut, Lafley said: “We will become a much more focused, much more streamlined company of 70 to 80 brands. Organized into about a dozen business units, and the four focused industry sectors.”

The company currently has five main areas of business: beauty; grooming; health care; fabric care and home care, and baby, feminine and family care.

Of those five, beauty turned in the weakest sales performance for the fourth quarter, but posted a 23 percent rise in profits of continuing operations, to $498 million. Net sales fell 5 percent to $4.63 billion, with organic sales slipping 3 percent and currency exchange making up the balance of the decline.

For the full year ended June 30, the company's beauty business drove earnings up 11 percent to $2.74 billion on a 2 percent drop in sales, to $19.51 billion.

On the call, Lafley said beauty was “one of the better performing sectors this last year, unfortunately, it was a little unbalanced. Too much of the value creation came from cash and profit improvement, although I will take it and there's a lot more there.”

He said the company had seen progress in its Old Spice business. The Pantene brand also saw some progress, although the ceo said it was “still not the progress I would like in the U.S.”

“We had a little bit of progress which excited some of our competitors and turned into a second quarter that was heavily promoted, but at any rate, we will get through that,” he said. “Pantene is growing very strongly and in important places like Brazil…. Head and Shoulders has gone from strength to strength. Herbal [Essences] is growing again. Vidal [Sassoon] is growing in key markets and then before the year was out, even on Olay, which is still struggling, we have some real encouragement in a couple of places.”

Speaking of the whole company, Lafley said, “While operating discipline and executional capability are getting better, a lot better around here, it must continue to improve to reach the levels of performance this company and our organization is capable of.” That mean’s a dramatically smaller company, at least from a brand perspective.

The company plans to eliminate 80 to 90 brands over the next year or two and focus on the 70 to 80 brands that produce 90 percent of its sales and 95 percent of its profits.

"This will be a much simpler, much less complex company of leading brands that's easier to manage and operate,” Lafley said. “This simplicity will significantly focus investment and resource allocation and enable execution.”

Investors gave a thumbs up to the move, pushing the company’s stock up 4.2 percent to $80.59 by 11:30 on Wall Street.

RTR - Moody's upgrades Greece's bond rating to Caa1 from Caa3

Moody's upgrades Greece's bond rating to Caa1 from Caa3
Aug 1 (Reuters) - Moody's Investors Service upgraded Greece's government bond rating to Caa1 from Caa3, citing the progress in implementing structural reforms.

The outlook on the rating is stable.

The ratings agency said Greece's short-term debt rating is unaffected and remains "Not Prime".

Moody's said it expects the general government debt-to-GDP ratio to decline in 2015, after peaking this year at around 179 percent of GDP. to see Moodys press Release {http://bit.ly/XtCrTr}

Moody's said the improvement in Greece's economic outlook, based on both a cyclical recovery and the progress made in implementing structural reforms and rebalancing the economy, supports the downward trajectory of the public debt ratio.

Moody's has also raised the local and foreign-currency country ceilings for long-term debt and deposits to Ba3 from B3.