Unusual Options Activity
Bullish Call Activity:Bearish Put Activity:
- NAT Jul 10 calls are seeing interest with relative strength in the underlying stock -- along with select shipping names following oil export news (volume: 4300, open int: 2870, implied vol: ~37%, prev day implied vol: 30%) -- co is expected to report earnings in Aug.
- MAN Jul 85 calls (volume: 3460, open int: 340, implied vol: ~22%, prev day implied vol: 19%) -- co is expected to report earnings mid July, possibly falling outside the July expirations cycle.
- BUD Sep 125 calls (volume: 12.5K, open int: 270, implied vol: ~21%, prev day implied vol: 19%) -- 7K contracts traded in single transaction above the offer. Co is confirmed to report earnings July 31 before the open.
- NEE Aug 105 calls (volume: 6530, open int: 3330, implied vol: ~18%, prev day implied vol: 17%) --nearly 5K traded at 1.15 with a 1.05/1.20 spread. CNBC discussed unusual options activity last week on June 19. Co is expected to report earnings late July.
Sentiment: The CBOE Put/Call ratio is currently: 0.78... VIX: (11.57, -0.56, -4.6%).
- CVRR Jul 25 puts are seeing interest with weakness in the underlying stock -- along with other refining related names -- and following offering news (volume: 2410, open int: 200, implied vol: ~25%, prev day implied vol: 20%) -- co is expected to report earnings late July.
- BGC Aug 25/26 puts are seeing interest. The BGC Aug 26 puts (volume: 3560, open int: 130, implied vol: ~40%, prev day implied vol: 36%) and the BGC Aug 25 puts (volume: 1450, open int: 240, implied vol: ~38%, prev day implied vol: 37%)
- HCA puts are seeing interest by nearly 3:1. Most notable volume is in the HCA Jan15 57.5 puts (volume: 7510, open int: 10, implied vol: ~23%, prev day implied vol: 22%) -- nearly all of the volume in the Jan15 57.5 puts occurred in single transaction.
July 18 is options expiration -- the last day to trade July equity options.
Vodafone Group plc EU has approved the €7.2B ($9.8B) acquisition of Ono in spain - financial press
- Reminder: on 3/17: Vodafone confirmed to buy Spain's Grupo Corporativo Ono in transaction consisting of €7.2B on debt and cash free basis Transaction is expected to be accretive to adjusted EPS and FCF per share from the first full year post completion after cost and capex synergies and before integration costs.
- Vodafone expects to achieve cost and capex synergies with a run-rate of approximately €240 million (£200 million) before integration costs by the fourth full year post completion, equivalent to a net present value of approximately €2.0 billion (£1.7 billion) after integration costs.
- Ono has the largest next-generation network in Spain
Sapiens International Reportedly Alpha Group has broken off negotiations to buy Sapiens after discussing a deal with a 20% premium - Globes
"The Alpha Group held negotiations until several days ago with the Formula Systems software holding company for the purchase of one of its portfolio companies - apparently Sapiens, which develops insurance industry software - in a transaction reflecting a market cap of $420 million (a 20% premium on the market value). Contacts between the parties were recently discontinued, apparently because of an inability to agree on a share price for the transaction. Formula and the Alpha Group declined to comment."
AbbVie Could Pay as Much as GBP65/Shr for Shire: Jefferies
2014-06-25 15:12:57.198 GMT
By Allison Connolly
June 25 (Bloomberg) -- AbbVie can raise offer for Shire up
to GBP65/shr and maintain double-digit EPS accretion, assuming
4% debt rate, Jefferies says in note.
* Says for every GBP5/shr increase to its bid, AbbVie loses
~8-9 cents of accretion in 2020 vs the implied >$1.00 of
accretion at current stock price
* Expects AbbVie to raise offer until deal gets done
* Says promise of share buybacks is important for U.K.
shareholders who may not wish/won’t be able to hold AbbVie
stock
* Maintains buy rating, PT GBP66
* NOTE: Earlier, AbbVie CEO Won’t Rule Out Going Hostile for
Shire
For Related News and Information:
First Word scrolling panel: FIRST<GO>
First Word newswire: NH BFW<GO>
To contact the reporter on this story:
Allison Connolly in London at +44-20-3525-7043 or
aconnolly4@bloomberg.net
To contact the editor responsible for this story:
James Ludden at +44-20-7673-2645 or
jludden@bloomberg.net
2014-06-25 15:12:57.198 GMT
By Allison Connolly
June 25 (Bloomberg) -- AbbVie can raise offer for Shire up
to GBP65/shr and maintain double-digit EPS accretion, assuming
4% debt rate, Jefferies says in note.
* Says for every GBP5/shr increase to its bid, AbbVie loses
~8-9 cents of accretion in 2020 vs the implied >$1.00 of
accretion at current stock price
* Expects AbbVie to raise offer until deal gets done
* Says promise of share buybacks is important for U.K.
shareholders who may not wish/won’t be able to hold AbbVie
stock
* Maintains buy rating, PT GBP66
* NOTE: Earlier, AbbVie CEO Won’t Rule Out Going Hostile for
Shire
For Related News and Information:
First Word scrolling panel: FIRST<GO>
First Word newswire: NH BFW<GO>
To contact the reporter on this story:
Allison Connolly in London at +44-20-3525-7043 or
aconnolly4@bloomberg.net
To contact the editor responsible for this story:
James Ludden at +44-20-7673-2645 or
jludden@bloomberg.net
T-Mobile could see interest from Dish Network, Comcast, American Movil if potential TMUS/Sprint deal rejected on regulatory concerns, Gabelli analyst Sergey Dluzhevskiy wrote in note earlier.
Sprint still most likely to buy TMUS as would have most to gain, likely willing to outpay others given possible synergies
Sees high probability of DISH bid for TMUS if S blocked; with DTV/T deal DISH may lose 2 merger partners; Verizon may like DISH spectrum, though “unenthusiastic” about buying satellite TV ops
Comcast busy with TWC now, though a bid in 12-24 mos. wouldn’t surprise
America Movil bid for TMUS “long shot”; since AT&T expected to sell stake in AMZ, Carlos Slim may want to consider U.S. market
TMUS remains buy at Gabelli
TMUS May See DISH, CMCSA Interest If Sprint Fails: Gabelli
2014-06-25 14:14:51.540 GMT
By Joshua Fineman
June 25 (Bloomberg) -- T-Mobile could see interest from
Dish Network, Comcast, American Movil if potential TMUS/Sprint
deal rejected on regulatory concerns, Gabelli analyst Sergey
Dluzhevskiy wrote in note earlier.
* Sprint still most likely to buy TMUS as would have most to
gain, likely willing to outpay others given possible
synergies
* Sees high probability of DISH bid for TMUS if S blocked;
with DTV/T deal DISH may lose 2 merger partners; Verizon may
like DISH spectrum, though “unenthusiastic” about buying
satellite TV ops
* Comcast busy with TWC now, though a bid in 12-24 mos.
wouldn’t surprise
* America Movil bid for TMUS “long shot”; since AT&T
expected to sell stake in AMZ, Carlos Slim may want to
consider U.S. market
* TMUS remains buy at Gabelli
* NOTE: Earlier, June 20, LCD news said Sprint Gets
Commitments for $20b Bridge Loan
For Related News and Information:
First Word scrolling panel: FIRST<GO>
First Word newswire: NH BFW<GO>
To contact the reporter on this story:
Joshua Fineman in New York at +1-212-617-8953 or
jfineman@bloomberg.net
To contact the editor responsible for this story:
Brad Skillman at +1-212-617-2763 or
bskillman1@bloomberg.net
2014-06-25 14:14:51.540 GMT
By Joshua Fineman
June 25 (Bloomberg) -- T-Mobile could see interest from
Dish Network, Comcast, American Movil if potential TMUS/Sprint
deal rejected on regulatory concerns, Gabelli analyst Sergey
Dluzhevskiy wrote in note earlier.
* Sprint still most likely to buy TMUS as would have most to
gain, likely willing to outpay others given possible
synergies
* Sees high probability of DISH bid for TMUS if S blocked;
with DTV/T deal DISH may lose 2 merger partners; Verizon may
like DISH spectrum, though “unenthusiastic” about buying
satellite TV ops
* Comcast busy with TWC now, though a bid in 12-24 mos.
wouldn’t surprise
* America Movil bid for TMUS “long shot”; since AT&T
expected to sell stake in AMZ, Carlos Slim may want to
consider U.S. market
* TMUS remains buy at Gabelli
* NOTE: Earlier, June 20, LCD news said Sprint Gets
Commitments for $20b Bridge Loan
For Related News and Information:
First Word scrolling panel: FIRST<GO>
First Word newswire: NH BFW<GO>
To contact the reporter on this story:
Joshua Fineman in New York at +1-212-617-8953 or
jfineman@bloomberg.net
To contact the editor responsible for this story:
Brad Skillman at +1-212-617-2763 or
bskillman1@bloomberg.net
Diamondback Energy Inc. Reportedly Repsol is negotiating to possibly acquire Diamondbank or Athabasca Oil - Spain press
- Repsol is reportedly looking to take the liquidity gained from the final settlement of outstanding YPF claims with Argentina to boost its exploration and production business.
- Repsol made a bid in May to Marathon Oil for its Norway assets, but talks went nowhere.
AbbVie lays out case for Shire takeover
Shire Pharmaceuticals aims to show it was right to reject AbbVie's approach
AbbVie said it wanted to “move quickly and cooperatively” to strike a deal with Shire as it set out plans for a £27bn takeover of its UK-listed rival.
The US drugmaker said a deal would create more value for shareholders than Shire would if it remained independent. AbbVie also questioned some of the aggressive growth targets announced by the UK company this week. AbbVie confirmed it would move its tax domicile to the UK in the event of a takeover, joining a series of US companies that have sought to use foreign acquisitions to shelter offshore cash from high US corporate tax rates.
However, the company’s headquarters would remain in Chicago and its listing in New York.
While AbbVie fleshed out details of its proposal for the first time, there was no increase on the cash-and-share offer made public last week.
AbbVie said the offer was worth £46.26 per share – 44 per cent of it in cash – although Shire has valued it at £46.11 using a different method of calculating the stock component.
In what could be seen as a signal of flexibility on price, AbbVie said it was “willing to move quickly and cooperatively to engage with Shire with a view to achieving a transaction for the benefit of all shareholders”.
Shire said on Friday that AbbVie’s proposal “fundamentally undervalued” the company, which has emerged as one of Europe’s fastest-growing drugmakers with a strong portfolio of treatments for rare diseases and neurological disorders.
The company made no immediate response to AbbVie’s statement on Wednesday.
Richard González, AbbVie chief executive, said his company’s greater global scale and capabilities would allow it to widen the reach of Shire’s products and accelerate development of its experimental drugs.
The US company said it had “thoroughly assessed” the tax aspects of its proposal and was confident in its ability to execute the deal.
Shire had identified risks surrounding the so-called “tax inversion” as one of its reasons for dismissing the offer.
Some Democrats on Capitol Hill are pushing for legislation to make it harder for companies to escape US taxes by moving overseas.
However, Shire’s main objection to the deal is on the grounds of price, with Flemming Ornskov, the chief executive, stressing on Monday that he would not stand in the way of an offer if it was in shareholders’ interests.
Mr Ornskov forecast a doubling in annual revenues to $10bn by 2020 as he laid out the case for independence.
AbbVie said it had been analysing Shire’s business since last autumn and that its models “do not reflect the same magnitude” of growth predicted by Mr Ornskov for the company’s research pipeline or gastrointestinal products.
The US company’s offer represented a 23 per cent premium over Shire’s share price the day before news of its interest became public. However, AbbVie highlighted the 58 per cent premium over the price on April 17, before news of Pfizer’s interest in AstraZeneca caused an intensification of takeover speculation around Shire.
--> SYNN -2,3%
Monsanto Plans $10 Billion Buyback After Syngenta Talks End (1)
2014-06-25 13:11:02.949 GMT
(Updates with comment from analyst in fifth paragraph.)
By Jack Kaskey
June 25 (Bloomberg) -- Monsanto Co., the largest seed
company, announced a $10 billion stock buyback plan to boost
investor returns after ending preliminary talks about a takeover
of Syngenta AG that would have cut its tax bill.
The company intends to finance the two years of repurchases
with debt. That will shift its capital structure from a net cash
balance to net debt of 1.5 times earnings before interest,
taxes, depreciation and amortization by the end of August 2015,
St. Louis-based Monsanto said today in a statement.
Monsanto also raised its full-year earnings forecast and
posted better-than-expected fiscal third-quarter profit. The
shares rose 3.7 percent in pre-market trading.
Chairman and Chief Executive Officer Hugh Grant laid out
plans to double earnings per share in five years, supported by
further gains in the seeds business and newer business such as
precision farming. The share buybacks are bigger than expected
and will lower the share count by about 15 percent, said Mark
Gulley, a New York-based analyst at BGC Financial LP.
“They have listened to shareholders and they are taking
advantage of very strong fundamentals,” Gulley, who recommends
buying the shares, said by phone today.
Monsanto and Syngenta, a $35 billion competitor, recently
explored the idea of a merger in discussions with their
advisers, people familiar with the matter told Bloomberg News
June 23. Such a deal would have moved Monsanto’s tax location to
Switzerland. The management of Syngenta, the biggest crop-
chemicals maker, decided against negotiations, the people said.
Inversion Deals
The mooted transaction follows other so called tax-
inversion deals that would allow other U.S. companies to free up
cash held outside the country. At the end of February Monsanto
had more cash on hand than debt.
Monsanto said in April it spent more than $1.5 billion to
buy back almost 3 percent of its shares over 12 months. The
company has $1.1 million remaining on a prior repurchase
authorization and $6 billion of the new $10 billion program will
be “accelerated,” Monsanto said today.
The company forecast ongoing earnings of $5.10 to $5.20 a
share in the year that ends Aug. 31, up a previous prediction of
$5 to $5.20.
Net income was $1.62 a share in the quarter that ended May
31, compared with $1.66 a year earlier and beating the $1.55
average of 21 analysts’ estimates compiled by Bloomberg. Sales
in the quarter were little changed at $4.25 billion, trailing
the $4.41 billion average estimate.
Monsanto climbed to $126.62 at 9:03 a.m. in New York before
the start of regular trading.
For Related News and Information:
Monsanto Said to Have Weighed Tax-Inspired Deal for Syngenta
NSN N7N4RU6KLVRM <GO>
Soy Farmers See Rally Ending on Record U.S. Harvest: Commodities
NSN N6YUJN6TTDSQ <GO>
Bloomberg Industries Basic and Diversified Chemicals:
BI BDCH <GO>
Bloomberg Industries Agricultural Chemicals: BI AGCH <GO>
Mondanto news: {MON US <Equity> CN <GO>}
To contact the reporter on this story:
Jack Kaskey in Houston at +1-713-547-8404 or
jkaskey@bloomberg.net
To contact the editors responsible for this story:
Simon Casey at +1-212-617-3143 or
scasey4@bloomberg.net
Robin Saponar
2014-06-25 13:11:02.949 GMT
(Updates with comment from analyst in fifth paragraph.)
By Jack Kaskey
June 25 (Bloomberg) -- Monsanto Co., the largest seed
company, announced a $10 billion stock buyback plan to boost
investor returns after ending preliminary talks about a takeover
of Syngenta AG that would have cut its tax bill.
The company intends to finance the two years of repurchases
with debt. That will shift its capital structure from a net cash
balance to net debt of 1.5 times earnings before interest,
taxes, depreciation and amortization by the end of August 2015,
St. Louis-based Monsanto said today in a statement.
Monsanto also raised its full-year earnings forecast and
posted better-than-expected fiscal third-quarter profit. The
shares rose 3.7 percent in pre-market trading.
Chairman and Chief Executive Officer Hugh Grant laid out
plans to double earnings per share in five years, supported by
further gains in the seeds business and newer business such as
precision farming. The share buybacks are bigger than expected
and will lower the share count by about 15 percent, said Mark
Gulley, a New York-based analyst at BGC Financial LP.
“They have listened to shareholders and they are taking
advantage of very strong fundamentals,” Gulley, who recommends
buying the shares, said by phone today.
Monsanto and Syngenta, a $35 billion competitor, recently
explored the idea of a merger in discussions with their
advisers, people familiar with the matter told Bloomberg News
June 23. Such a deal would have moved Monsanto’s tax location to
Switzerland. The management of Syngenta, the biggest crop-
chemicals maker, decided against negotiations, the people said.
Inversion Deals
The mooted transaction follows other so called tax-
inversion deals that would allow other U.S. companies to free up
cash held outside the country. At the end of February Monsanto
had more cash on hand than debt.
Monsanto said in April it spent more than $1.5 billion to
buy back almost 3 percent of its shares over 12 months. The
company has $1.1 million remaining on a prior repurchase
authorization and $6 billion of the new $10 billion program will
be “accelerated,” Monsanto said today.
The company forecast ongoing earnings of $5.10 to $5.20 a
share in the year that ends Aug. 31, up a previous prediction of
$5 to $5.20.
Net income was $1.62 a share in the quarter that ended May
31, compared with $1.66 a year earlier and beating the $1.55
average of 21 analysts’ estimates compiled by Bloomberg. Sales
in the quarter were little changed at $4.25 billion, trailing
the $4.41 billion average estimate.
Monsanto climbed to $126.62 at 9:03 a.m. in New York before
the start of regular trading.
For Related News and Information:
Monsanto Said to Have Weighed Tax-Inspired Deal for Syngenta
NSN N7N4RU6KLVRM <GO>
Soy Farmers See Rally Ending on Record U.S. Harvest: Commodities
NSN N6YUJN6TTDSQ <GO>
Bloomberg Industries Basic and Diversified Chemicals:
BI BDCH <GO>
Bloomberg Industries Agricultural Chemicals: BI AGCH <GO>
Mondanto news: {MON US <Equity> CN <GO>}
To contact the reporter on this story:
Jack Kaskey in Houston at +1-713-547-8404 or
jkaskey@bloomberg.net
To contact the editors responsible for this story:
Simon Casey at +1-212-617-3143 or
scasey4@bloomberg.net
Robin Saponar
iPhone 6 Said to Launch on Friday, September 19 in 32 GB and 64 GB Variants
Wednesday June 25, 2014 3:55 am PDT by Richard Padilla
Apple will look to launch the 4.7-inch iPhone 6 on Friday, September 19, according to a new report from Chinese web portal Tencent (Google Translate, via GforGames) citing inside sources. The news comes after German carrier Deutsche Telekom was reported to be informing customers of a similar release date for the device.
iphone61
The report also notes that Apple will launch 32GB and 64GB capacities of the phone for 5,288 yuan ($846) and 6,288 yuan ($1008), indicating that Apple may launch the iPhone 6 without a 16GB model. Notably, 5,288 yuan is the current price for the 16GB iPhone 5s in China, while the 32GB iPhone 5s is listed at 6,088 yuan.
A September launch would be consistent with the past two iPhone launches, as Apple also typically launches new products on a Friday. A report from Bloomberg earlier this week also claimed that Apple may launch the larger 5.5-inch version of the iPhone 6 and the 4.7-inch version simultaneously, with previous reports indicating that issues with battery and display technology would hold up the larger device's launch.
In addition to a larger display, the iPhone 6 is expected to feature a thinner design, a faster A8 processor, and more. The iPhone 6 is also expected to feature an improved camera, with the larger 5.5-inch version exclusively utilizing optical image stabilization and the smaller device featuring an advanced lens module.