WSJ : United Biscuits Considers IPO

United Biscuits Considers IPO
Owners Blackstone, PAI May Also Hold Talks With Potential Buyers for the Cookie Maker

LONDON—British snacks and cookie maker United Biscuits Ltd. is weighing a year-end initial public offering, said people familiar with the matter.

Bankers for the Jaffa Cakes maker had been holding informal meetings with potential buyers in recent weeks, said some of the people. But now United Biscuits' owners—private-equity firms Blackstone Group BX +1.17% LP and PAI Partners—believe they may be able to get more money by going public, rather than through a sale, they added.

The company is now looking at running a so-called dual-track process, according to the people, in which United Biscuits' owners would move forward with plans to take the company public while still engaging in talks with interested buyers to determine where they could gain the most lucrative exit.

A spokeswoman for United Biscuits declined to comment.

Blackstone and PAI bought United Biscuits for £1.6 billion ($2.7 billion) in 2006. A sale has been expected as eight years is long time for a private-equity firm to hold on to any given asset. In 2010, Blackstone and PAI tried to offload the business to China's Bright Food Group Co., but the two sides couldn't agree on United Biscuits' pension liabilities. An IPO would make pension issues less of a concern, one person familiar with the deal said.

Private-equity firms' first choice is often to sell a company to rivals or other companies. IPOs are becoming increasingly popular for many private-equity firms, as the public markets can often provide a better return than the private market. The European Private Equity and Venture Capital Association found that the number of private-equity-backed IPOs nearly quadrupled in 2013.

If United Biscuits is sold, it will be the second British cookie company to change hands in less than a year. In November, the Ontario Teachers' Pension Plan, one of the world's biggest pension funds, bought Burton's Biscuit Co., the 140-year-old maker of Maryland Cookies and Jammie Dodgers. The price wasn't disclosed.

United Biscuits posted sales of £1.10 billion in 2013 and is the world's sixth-biggest cookie maker by revenue in a list headed by Oreos maker Mondelez International Inc., MDLZ +0.76% according to Euromonitor International. The company has around a 25% share of the U.K. market, mainly through its 160-year-old McVitie's brand, which includes Jaffa Cakes and Digestives.

But the company has expanded beyond the U.K. in recent years and is targeting further growth in China, the U.S. and Africa.

(BFW) E-Plus Deal Approval May Spark More M&A, Change of KPN Ownership

E-Plus Deal Approval May Spark More M&A, Change of KPN Ownership
2014-07-01 15:28:34.506 GMT


By Sam Chambers
     July 1 (Bloomberg) -- The EU is set to rule on Telefonica’s
proposed $12b purchase of KPN’s German unit E-Plus by July 10.
Telefonica’s recent agreement to cede spectrum to Drillisch is
seen as having increased chances of deal approval. Deal
implications outlined below:

POSITIVE CATALYST:
  * Deal approval would boost investment case of the sector by
    providing greater regulatory visibility, help stabilize
    prices, Macquarie says
    * NOTE: Since 2005, European wireless avg. rev. per user
      has fallen by 53% to EU12: Bloomberg Industries data
  * Deal approval could trigger M&A activity in the Netherlands
    and Belgium, two of KPN’s other mkts: ING
  * Approval opens the door to in-market consolidation in Italy
    and Spain: Macquarie
  * Positive E-Plus ruling could pave the way for Tele2 to sell
    its Dutch and Norwegian operations: JPMorgan

AMX STAKE SALE:
  * MergerMarket reported that America Movil, KPN’s largest
    shareholder, will reevaluate its holding after E-Plus
    outcome is known
  * On June 28, Carlos Slim agreed to buy AT&T’s stake in AMX
    for $5.57b, a move Macquarie said may lead to AMX selling
    its KPN stake
    * NOTE: AMX has cut its KPN holding by ~17% since Aug.:
      Bloomberg data

RECENT EXAMPLES
  * The EU has approved in-market consolidation in Austria and
    Ireland, after imposing remedies:
  * In May, EU approved Hutchison’s acquisition of TEF’s Irish
    unit on condition it ceded up to 30% of its spectrum to at
    least one virtual network operator
  * When approving Hutchison’s purchase of Orange Austria in
    2012, the EU unsuccessfully tried to secure a new entrant
    into the mkt

DEADLINE/TIMING:
  * The EU has set a deadline of July 10 to rule on the deal; on
    June 30 EU commissioner Almunia said a decision would be
    reached in ’coming days’
  * The European Commission is scheduled to meet on July 1 and
    July 8



For Related News and Information:
First Word scrolling panel: FIRST<GO>
First Word newswire: NH BFW<GO>

To contact the reporter on this story:
Sam Chambers in London at +44-20-7673-2021 or
schambers7@bloomberg.net
To contact the editors responsible for this story:
James Ludden at +44-20-7673-2645 or
jludden@bloomberg.net
Gaurav Panchal

(GS)LTRO: val. and gearing to bank union process support CL Buy on BBVA, ISP, IN

Goldman sees scope for EU200b-EU260b of LTRO-3 take-up (50%-65% ratio; allocations: 2H14), based on full (90%) take-up in periphery and 25%-50% take-up in core.
  • For LTRO-4 (allocations: 2015-16), estimates higher, wider range of EU520b-EU650b
  • Base case est. of total TLTRO take-up therefore EU720b-EU910b
  • Says crucial that “lending benchmarks” are clarified further
  • Says valuation and gearing to bank union process support CL Buys on BBVA, Intesa, ING

>>> US Gapping down

Gapping down
M&A news: PF -0.6% (announced termination of merger agreement with Hillshire Brands (HSH); co entitled to receive a cash payment of $163 mln; reaffirmed FY14 EPS guidance).

Other news: PT -7.1% (still checking), UNIS -5.7% (filed for $200 mln mixed securities shelf offering and 600,000 shares common stock issued or issuable upon the exercise of warrants by holders), RLD -5.3% (hearing block trade), NUAN -4.4% (may be attributed to speculation that Apple (AAPL) will change to a different company to license its Siri voice recognition service out yesterday), WGP -3.7% (announced launch of 5 mln unit common unit offering by subsidiary of Anadarko (APC)), GEVA -3.6% (reports positive top-line results from Phase 3 Study Of Sebelipase Alfa In Children And Adults With LAL Deficiency), HRB -1.8% (attributed to block trade), KING -1.7% (pulling back after yesterday's move), PBI -1.7% (still checking), TE -1.6% (announced that it plans to offer 15.5 million shares of its common stock pursuant to an effective shelf registration statement).

Analyst comments: URBN +-2.6% (downgraded to Neutral from Outperform at Wedbush ), GNRC +-2.3% (downgraded to Neutral from Buy at BofA/Merrill), MNKD +-2.2% (downgraded to Hold at MLV & Co), XRX +-1.2% (downgraded to Neutral from Buy at Citigroup), SYMC +-1.1% (downgraded to Market Perform from Outperform at BMO Capital Markets), DECK +-1% (downgraded to Neutral from Outperform at Macquarie), GS +-0.8% (downgraded to Mkt Perform from Outperform at Bernstein), SHO +-0.8% (downgraded to Market Perform from Outperform at Wells Fargo).

>>> US Gapping up

Gapping up
In reaction to strong earnings/guidance: PFIE +3.1%.

M&A news: TSPT +25.6% (co and Paratek Pharmaceuticals sign merger agreement), COO +3.3% (announces definitive agreements to acquire Sauflon Pharmaceuticals), .

Select EU financial related names showing strength: NBG +1.4%, ING +1.4%, UBS +1.3%, BCS +1.2%.

Select metals/mining stocks trading higher: RIO +1.2%, GOLD +0.8%, BHP +0.6%.

Other news: PVCT +26.7% (still checking), AGEN +22.7% (vaccine shows extended survival in phase 2 final data analysis), GALE +11.8% (announces notice of allowance of broad U.S. Patent for NeuVax), SLXP +11.1% (announces statistically significant primary endpoint result for TARGET 3 evaluating the efficacy and safety of repeat treatment with Rifaximin 550mg), GPRO +8.7% (positive mention on Mad Money), OGXI +7.2% (announces Cedar clinical trial evaluating apatorsen in combination with chemotherapy in advanced squamous cell lung cancer is now open for enrollment), EVRY +6.2% (provides update on credit agreements), MY +6.1% (strong Chinese PMI data overnight), CTIC +5.3% (completes recruitment in PERSIST-1 pivotal Phase 3 trial of Pacritinib for patients with myelofibrosis; expects to receive $20 mln development milestone payment from Baxter (BAX)), FEYE +2.1% (positive mention on Mad Money), BK +1.9% (positive mention on Mad Money), GMCR +1.1% (announced a multiyear agreement to bring Nestle (NSRGY) to bring Coffee-Mate branded coffee to K-Cup packs for the Keurig brewing system), MPEL +1% (positive Macau data).

Analyst comments: FOLD +9.9% (upgraded to Buy from Neutral at Janney, upgraded to Outperform from Mkt Perform at Leerink Partners), NFLX +4% (upgraded to Buy from Neutral at Goldman), ANET +3.9% (initiated with a Outperform at RBC Capital Mkts, initiated with a Buy at Deutsche Bank, among others), ICPT +3.1% (initiated with Outperform and $425 tgt at RBC Capital Markets),JD +2.7% (initiated with a Overweight at Barclays, and several other intiations), NBR +2.1% (upgraded to Outperform from Mkt Perform at Raymond James), HCLP +1.3% (target raised to $65 at Wunderlich), HIMX +1.3% (positive comments at Northland), CPTA +1.1% (initiated with a Buy at Wunderlich), PCLN +0.8% (initiated with Outperform and $1450 tgt at Oppenheimer)

>>> FTNT, PFPT and IMPV could potentially be acquisition candidates (FBR)

FBR Capital notes positive field checks in security software; believes FTNT, PFPT and IMPV could potentially be acquisition candidates 

FBR Capital says their field checks heading into 2H14 have been positive around overall security software spending as evidence from the field indicates a pickup in deal activity in 2Q on the heels of what we would characterize as a strong March quarter. Their checks indicate security leaders such as PANW, FEYE and CHKP are benefiting front and center with the "right products at the right time." Also, firm says that as an overdue security upgrade cycle and massive cybersecurity initiatives are adding a sense of urgency for large enterprises to upgrade their threat protection, they think security names such as FTNT, PFPT and IMPV could potentially be acquisition candidates for a larger technology player to snap up.

FT : Private equity buyers eye Lafarge, Holcim assets

US private equity group Blackstone, London buyout firm Cinven and Canada Pension Plan Investment Board are exploring a joint bid for €5bn worth of assets earmarked for sale by cement makers Lafarge and Holcim, two people with knowledge of the talks said.

The move underscores strong private equity interest in the plants that the world's two largest cement groups seek to offload to win antitrust approval for their $40bn merger, report the FT's Anne-Sylvaine Chassany, Arash Massoudi and Ed Hammond.

Other firms weighing up distinct or joint offers for the factories include TPG Capital, CVC, KKR and BC Partners. Competing cement makers are also expected to evaluate offers for some of the assets.

Lafarge and Holcim, which announced their intention to merge in April, are gearing up to kick-start a competitive sale of those assets as soon as this month, people with knowledge of the plan said.

Credit Suisse, HSBC, Morgan Stanley and BNP Paribas are managing the auction. First round bids are expected to be due in September.

The disposal of production facilities was announced as part of the April deal to pre-empt antitrust concerns. The parameters of the sales have yet to be detailed by Lafarge and Holcim.

Analysts and bankers have speculated that the auction will include assets in Western Europe, Canada, Brazil and Philippines.

>>> US Early premarket gappers

Early premarket gappers

Gapping up: RYN +12.3%, FOLD +9.3%, TSPT +8.5%, GPRO +7.4%, OGXI +7.2%, MY +3.8%, NFLX +3.7%, PFIE +3.1%, ISLE +2.7%, NBG +1.9%, ING +1.6%, UBS +1.6%, BK +1.4%, BCS +1.2%, GMCR +1.1%, RIO +1%, BHP +0.7%, GOLD +0.7%

Gapping down: NSPH -15.2%, PT -6.8%, UNIS -5.7%, WGP -4.9%, TKR -4.4%, GEVA -3.6%, MNKD -2.5%, HRB -1.8%, TE -1.6%, TE -1.6%, XRX -1.6%, GM -0.8%

FT : Dov Charney builds American Apparel stake towards 50%

Dov Charney, the controversial founder of US fashion chain American Apparel, has managed to increase his stake in the company towards 50 per cent, according to regulatory filings in New York.
After the bell on Monday, it was revealed exactly how much common stock Standard General, a privately owned hedge fund, had acquired on Mr Charney’s behalf: 25m-30m shares – or a 17 per cent stake in the company.

Combined with Mr Charney’s existing 27 per cent stake, he now has control of 44 per cent of American Apparel shares, edging him closer to 50 per cent – the critical benchmark at which he can potentially push for his own reinstatement to the board.
A regulatory filing last Friday outlined a deal between the hedge fund and Mr Charney in which it will acquire more than 10 per cent of American Apparel stock, then lend money to the former chief executive to buy the shares back, which could bring him back into the boardroom if he can create a controlling bloc.
Mr Charney also has the support of investor Lion Capital, who demanded the repayment of a $10m loan from the board following the attempted termination of Mr Charney’s contract, people familiar with the situation said. That could trigger another default on a $30m loan with Capital One.
Those people also said Mr Charney had rallied support from a number of smaller ‘Mom-and-Pop’ sized shareholders, taking him to a position where he could call a special meeting to discuss the future of the company.
The move by Mr Charney, who was forced out as chief executive, comes 48 hours after the retail group unveiled a stockholder rights plan – or poison pill – adopted to prevent any kind of hostile takeover.
The ‘poison pill’ consisted of a one-year stockholder rights plan adopted by the company last week, which would be triggered if any shareholder who owned 15 per cent or more of its shares sought to increase their stake.
The retailer said the plan was “designed to limit the ability of any person or group, including Dov Charney, to seize control of the company without appropriately compensating all American Apparel stockholders”.
The Los Angeles-based chain, which has a network of stores across the US, Europe, and Asia, has been struggling with stagnant sales and $250m debt.
Last month, the retailer fired Mr Charney citing allegations of sexual harassment and financial mismanagement. Mr Charney accused the board of mounting a “hateful” campaign against him, and said he was prepared to take legal action to be reinstated.
Shares in American Apparel closed down almost 7 per cent in New York on Monday at 90 cents, having fallen 53 per cent in the past year.