(BFW) France Reaches Bouygues Price Agreement for Alstom Stake: AFP

France Reaches Bouygues Price Agreement for Alstom Stake: AFP
2014-06-21 17:22:49.509 GMT


By Alex Webb
     June 21 (Bloomberg) -- Accord for 20% stake in Alstom helps
clear path for GE to buy energy assets, AFP reports, citing an
unidentified person with knowledge of the talks.
  * An announcement will be made “later”: AFP
  * EARLIER: GE’s Alstom Deal Said Caught in Dispute Between
    France, Bouygues
  * NOTE, yesterday: GE Wins French Support on Alstom Deal With
    State Seeking 20%


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

To contact the reporter on this story:
Alex Webb in Munich at +49-89-24447-8802 or
awebb25@bloomberg.net
To contact the editor responsible for this story:
Simon Thiel at +44-20-7673-2814 or
sthiel1@bloomberg.net

FT : Asos suspends website after warehouse fire

Asos suspends website after warehouse fire

Asos, the online retailer, was forced to suspend its website on Saturday, after a fire at its main warehouse in Barnsley, South Yorkshire.
“In order not to disappoint our customers we have temporality stopped taking orders, Asos said. “When we have clarity on the situation, we will issue a further statement.”

South Yorkshire Fire and Rescue, said the blaze at Park Spring Road, Barnsley, started at about 10pm on Friday night.
“At its height, the fire was tackled by 10 fire engines, an aerial ladder platform and a High Volume Pump. The warehouse was more than 60,000 square metres in size. The fire involved several floors of the building and fire crews worked hard to quickly bring the blaze under control,” the service said.
It added that the fire, which took over 60 firefighters to bring under control, was thought to have broken out on the second floor of the five storey building, before spreading to the third and fourth floors.
By Saturday morning, the blaze had been put out, with one fire engine remaining to ensure that no “hotspots” reignited.
An investigation into the cause of the fire was expected to begin later on Saturday.
The fire at the Barnsley sight comes at a delicate time for Asos, which issued a severe profit warning earlier this month, after it was hit by the strength of sterling and heavy discounting.
Asos warned in early May, that pre-tax profit this year would be about 30 per cent lower than expected, after it suffered a “triple whammy of the perfect storm on profit”.
But some rivals and analysts suggest there are fundamental changes in the online market, with bricks and mortar retailers becoming more assertive in their web operations.
It is not the first time that Asos has suffered damage to one of its distribution facilities. In December 2005, its then only warehouse was badly damaged by the explosion and fire at the Buncefield oil depot near Hemel Hempstead.
Asos also suspended its site after this disaster, which Nick Robertson, chief executive, told the FT at the time was the worst thing that could happen to an online retailer.
Asos also suspended its shares after the Buncefield blast, and began refunding customers whose orders could not be delivered.

(Les Echos) Alstom: showdown around the participation of Bouygues

Alstom: showdown around the participation of Bouygues

Negotiations are clamped between the state and Bouygues group, which yesterday announced its intention to take 20% of Alstom, Bouygues which now holds 29.4% equity. If the State has announced its intention to enter "on the basis of market price" (28 euros at the closing Friday night), Bouygues does not intend to sell off its stake, recorded in its accounts to 34 euros. According to AFP, he would ask 35 euros. Negotiations must be buckled before the opening of trading on Monday.
Saturday, Francois Hollande said he hoped progress "by the end of the day", adding that "if there were no such advances, if there was no such sale a price that is acceptable to the government, then there would necessarily return to the alliance as it has been announced. "
In any event, the State has the means of pressure on the group, which is largely dependent on government. "We have enough overall relations with Bouygues on many subjects so that it does not go bad. The offer MHI / Mitsubishi remains also always possible, "says a government source.
The executive made a surprise Friday night, inviting the State in the Alstom file. "The government has decided to enter the capital of Alstom up to 20% and become the largest shareholder of the company," said Economy Minister Arnaud Montebourg at a press conference. The state will buy it for two thirds of Bouygues' stake which now holds 29.4% of the shares of the group. Evaluated 1.7 billion during the last Alstom this entry to capital could be funded by the EPA (Agency interests of the State) or Bpifrance, without the need to sell assets.

The choice of General Electric
Arnaud Montebourg also announced that the choice of the state was focused on the amended offer of U.S. group General Electric , which was preferred to competitors Siemens and Mitsubishi Heavy Industries . But under "rigorous and respectful of the interests of France conditions," the minister said. The State will apply the decree of 14 May on foreign investment in France, allowing him to oppose an acquisition in the strategic energy sector.
"Alstom is maintained in most of its activities", welcomed Arnaud Montebourg, citing an "alliance of equals, the nature of that which had been made there forty years Safran and General Electric," and far from "buy-absorption-devouring" envisaged by the American cause.
Prime Minister Manuel Valls also welcomed these announcements, indicating that the choice of returning to GE "much to the Arnaud Montebourg commitment," and that "in terms of method, it is the anti-Florange" with reference to the conflict that opposed the fall of 2012 Jean-Marc Ayrault and Arnaud Montebourg, who campaigned at the time for nationalization Site ArcelorMittal Florange. For its part, the CFE-CGC union first French group, said that the entry of the state capital of Alstom was "reassuring" and that there was "no doubt now that the Board of Directors choose General Electric. "

"Brussels is the main obstacle to the creation of European champions"
Arnaud Montebourg called supply Siemens and Mitsubishi, "very serious, very credible, very seriously worked." But she "met the competition rules which are monitored by the European Commission. Brussels is the main obstacle to the creation of European champions, "he has said. Supporting management in the supply of GE, and prior discussions with the American group, may have also played a vital role." Had we both offers at the same time, they are worth, "said a government source.
The presentation of the operation is able and advantageous for governments that can boast of having preserved the French interests. And, even if, ultimately, GE will acquire many swathes of the French equipment: gas turbines, much steam turbines, 50% of renewable electricity networks.
"The deal will not strengthen Alstom least, since it provides cash to pay off debt, and allows it to benefit from the balance sheet of General Electric to offer its customers financing its projects, a key point in its business" insists one at Bercy. The decision to enter into exclusive negotiations with GE is now up to the Board of Directors of Alstom, which held its first meeting on Friday evening and is expected to decide before the opening of trading on Monday morning, if discussions are unlocked with Bouygues by then.
A reverse of the 2006 scenario
The government's plan to buy 20% of Alstom, Bouygues is the exact opposite scenario of 2006, when the construction group had taken the part of the State in the specialist transport infrastructure and energy.
In April 2006, Bouygues acquired the 21.03% that the State held in Alstom's capital from the public rescue it in July 2004. In 2007, Bouygues' stake was 25.3%, then time exceeded the 30% mark before falling to the current level of 29.4% after a capital increase of Alstom end of 2012, Bouygues had not followed at the time.
The 20% stake in Alstom represent € 1.7 billion, based on the current market capitalization of the group according to Thomson Reuters data. In 2006, Bouygues had purchased from the state about two billion euros

Les Echos : Alstom : bras de fer autour de la participation de Bouygues

Alstom : bras de fer autour de la participation de Bouygues

Les négociations sont serrées entre le groupe Bouygues et l’Etat, qui a annoncé hier son intention de prendre 20% du capital d’Alstom, dont Bouygues détient aujourd’hui 29,4%. Si l’Etat a annoncé son intention d’entrer « sur une base de prix de marché » (28 euros à la clôture vendredi soir), Bouygues n’entend pas brader sa participation, inscrite dans ses comptes à 34 euros. Selon l’AFP, il demanderait 35 euros. La négociation doit être bouclée avant l’ouverture de la bourse, lundi.
Ce samedi, François Hollande a déclaré qu'il espérait des avancées "d'ici la fin de la journée" avant de préciser que "s'il n'y avait pas ces avancées, s'il n'y avait pas cette vente à un prix qui, pour le gouvernement soit acceptable, alors il y aurait nécessairement à revenir sur l'alliance telle qu'elle vient d'être annoncée".
En tout état de cause, l’Etat dispose de moyens de pressions sur le groupe, qui dépend en grande partie des pouvoirs publics. « Nous avons suffisamment de relations globales avec Bouygues sur beaucoup de sujets pour que cela ne se passe pas mal. L’offre MHI/Mitsubishi reste d’ailleurs toujours possible », note une source gouvernementale.
L’exécutif a créé la surprise vendredi soir, en invitant l’Etat dans le dossier Alstom. « Le gouvernement a pris la décision d’entrer dans le capital d’Alstom à hauteur de 20% et de devenir le principal actionnaire de cette entreprise », a déclaré le ministre de l’Economie Arnaud Montebourg lors d’une conférence de presse. L’Etat rachètera pour cela les deux tiers de la participation de Bouygues qui détient aujourd'hui 29,4% des actions du groupe. Evaluée à 1,7 milliards d’euros au derniers cours d‘Alstom, cette entrée au capital pourrait être financée par l’APE (Agence des participations de l’Etat) ou Bpifrance, sans qu’il soit nécessaire de céder des actifs.

Le choix de General Electric
Arnaud Montebourg a aussi annoncé que le choix de l’Etat s’était porté sur l’offre amendée du groupe américain General Electric , qui a été préféré aux concurrents Siemens et Mitsubishi Heavy Industries . Mais sous conditions « rigoureuses et respectueuses des intérêts de la France », a poursuivi le ministre. L’Etat appliquera le décret du 14 mai sur les investissements étrangers en France, lui permettant de s’opposer à une acquisition dans le secteur stratégique de l’énergie.
« Alstom est maintenu dans la plupart de ses activités », s’est félicité Arnaud Montebourg, évoquant une « alliance entre égaux, de la nature de celle qu’avaient constituée il y a quarante ans Safran et General Electric», et bien loin du « rachat-absorption-dévoration », envisagé par l’américain à l’origine.
Le premier ministre Manuel Valls a aussi salué ces annonces, indiquant que le choix de GE revenait pour "beaucoup à l'engagement d'Arnaud Montebourg", et que, "en termes de méthode, c'est l'anti-Florange", en référence au conflit qui avait opposé à l'automne 2012 Jean-Marc Ayrault et Arnaud Montebourg, qui militait à l'époque pour une nationalisation du site ArcelorMittal de Florange. De son côté, la CFE-CGC, premier syndicat du groupe français, a affirmé que l'entrée de l'Etat au capital d'Alstom était "rassurant" et qu'il ne faisait "aucun doute maintenant que le conseil d'administration choisira General Electric".

"Bruxelles est le principal obstacle à la création de champions européens"
Arnaud Montebourg a qualifié l'offre de Siemens et Mitsubishi, "très sérieuse, très crédible, très sérieusement travaillée ». Mais elle s’est « heurtée aux règles de la concurrence qui sont surveillées par la Commission européenne. Bruxelles est le principal obstacle à la création de champions européens », a-t-il déclaré. Le soutien du management à l’offre de GE, et l’antériorité des discussions avec le groupe américain, ont sans doute aussi joué un rôle essentiel. « Si nous avions eu les deux offres au même moment, elles se valaient », souligne une source gouvernementale.
La présentation de l’opération est habile et avantageuse pour les pouvoirs publics qui peuvent se targuer d’avoir préservé les intérêts français. Et ce, même si, au final, GE rachètera bien des pans entiers de l’équipementier français : les turbines à gaz, une grande partie des turbines à vapeur, 50% des renouvelables et des réseaux électriques.
« Le deal n’en renforce pas moins Alstom, puisqu’il lui fournit du cash pour se désendetter, et lui permet de bénéficier du bilan de General Electric pour proposer à ses clients des financements sur ses projets, point clé dans ses métiers », insiste-t-on à Bercy. La décision d’entrer en négociations exclusives avec GE revient maintenant au conseil d’administration d’Alstom, qui a tenu une première réunion vendredi soir et devrait se décider avant l’ouverture de la bourse lundi matin, si les discussions avec Bouygues sont débloquées d’ici là.
Un scénario inverse à celui de 2006
Le projet du gouvernement de racheter 20% d’Alstom à Bouygues constitue le scénario exactement inverse de 2006, quand le groupe de BTP avait repris la part de l’Etat dans le spécialiste des infrastructures de transport et d’énergie.
En avril 2006, Bouygues avait acquis les 21,03% que l’Etat détenait au capital d’Alstom depuis le sauvetage public de celui-ci en juillet 2004. En 2007, la participation de Bouygues avait atteint 25,3%, a ensuite dépassé un temps la barre des 30%, avant de retomber au niveau actuel de 29,4% à l’issue d’une augmentation de capital d’Alstom, fin 2012, que Bouygues n’avait pas suivie à l’époque.
La participation de 20% dans Alstom représenterait 1,7 milliard d’euros, sur la base de la capitalisation boursière actuelle du groupe selon des données Thomson Reuters. En 2006, Bouygues avait racheté la part de l’Etat environ deux milliards d’euros.

>>> Weekly Update

Weekly Market Update: Dovish Fed Aids sentiment

- Market complacency hit new highs this week as both the DJIA and the S&P500 both pushed out to fresh record highs this week. Meanwhile, the VIX dipped below 10.40, its lowest level since early 2007. The Fed decision on Wednesday held no surprises, although during the post-decision press conference Fed Chair Yellen qualified her definition of the "considerable period" between the end of the taper and rate hikes. Yellen said there was "no mechanical formula" defining this span of time, further distancing herself from the gaff at her first press conference when she suggested it would be about six months. Markets took the statement as dovish, greatly aiding positive sentiment. The bleeding continued in Iraq and Ukraine all week, but neither conflict managed to distract markets as they have been able to do in the past. For the week, the DJIA rose 1%, the S&P500 climbed 1.4%, and the Nasdaq gained 1.3%.

- The US May CPI report showed prices at a key threshold: the core CPI figure hit 2.0%, which suggested inflation is getting close to the Fed's target rate. On a sequential basis, monthly core CPI increased at its fastest pace since August 2011 while the y/y figure is at the 2.0% level for the first time since February 2013. Keep in mind that the Fed watches the PCE series as its main gauge of inflation; in updated economic forecasts accompanying Wednesday's decision, the Fed slightly increased its 2014 PCE forecast to 1.5-1.7% from 1.5-1.6%. The May PCE data will be released on June 26th. In her post-decision press conference, Yellen said the CPI data was "noisy," which some people believed meant she wasn't too worried about inflation at the moment.

- Housing starts fell 6.5% in May, for the first decline in the series in four months, while the April figures were revised slightly lower. The decline was broad-based across regions and type of construction. Single-family housing starts fell 5.9%, while multifamily starts fell 7.6%. Permits declined as well, led lower by a sharp decline in multi-family permits.

- Conflict in Iraq and Ukraine continued without interruption. After being knocked from the headlines by ISIS's offensive in Iraq, the conflict in eastern Ukraine was heating up again. NATO Chief Rasmussen warned that Russia was boosting troop levels on Ukraine's borders and there were reports of Russia sending tanks, armored vehicles and artillery over the border to resupply pro-Russia insurgents. Ukraine President Poroshenko declared a one week unilateral cease-fire, however Russia and many other observers see it as a demand for surrender by the rebels, and not the start of a negotiation. In Iraq, government forces seemed to check ISIS's advance north of Bagdad as the Baiji refinery traded hands all week. Prime Minister Maliki appeared to lose support of Iran, the US and even Grand Ayatollah Ali al-Sistani, as all three power centers signaled a new government was needed to cope with the new situation on the ground. Energy prices did not move any higher, with front-month WTI spending most of the week around $107. Gold spiked 3.3% on Thursday, hitting one-month highs, a move attributed to geopolitical tensions, an accommodative Fed, and the continued unwinding of Chinese commodity financing deals.

- Amazon unveiled its new smartphone platform this week, dubbed the Fire Phone. As expected, it features multiple cameras that support a 3D display, but the more interesting aspects of the new device went well beyond graphical gimmicks. The device's Firefly system allows users to take a picture of any product from books to barcodes and have the device find the product on Amazon.com. Firefly also reads text and numerals via a strong character recognition system, and can identify music and open songs on various services. Fire Phone sells for about the same as the iPhone: $200 with a two-year contract from AT&T, although the devices have more internal storage.

- In earnings, FedEx had a very good fourth quarter and offered a strong initial FY15 forecast. BlackBerry continued to restructure its business in its first quarter for a more modest market position. The firm's margins rose firmly for a second consecutive quarter and its quarterly losses continue to fall. Rite Aid's first quarter revenue declined 50% y/y thanks to higher drug costs and steeper reimbursement rate reductions, although comps held up well. After reporting another disappointing quarter, Darden charted a course for its post-Red Lobster business, offering an initial view of its FY15 outlook. Oracle missed expectations and analysts were skeptical of its touted transition into cloud services.

- Steel names Nucor, AK Steel and Steel Dynamics provided guidance on second quarter results. AK Steel and Nucor missed expectations: AK blamed lingering effects of the winter weather and hedging losses, Nucor said imports continue to negatively impact pricing and margins. Meanwhile Steel Dynamics's outlook was in line with consensus views. STLD said profitability would be higher in the quarter on a sequential basis as both shipments and metal spreads are improving, despite significantly increased import activity. Also, ConAgra trimmed its fourth quarter guidance slightly due to volume declines in its Consumer Foods segment, as well as weak profits for the Private Brands segment.

- Another round of huge M&A deals were announced this week. The biggest was Medtronic's agreement to buy competitor Covidien for $42.9 billion in cash and stock. Analysts suggested that the deal would be burdened by heavy political and regulatory attention, while also noting that there would be limited opportunities to extract cost synergies because of the narrow product overlap between the two companies. Level 3 Communications entered a deal to buy TW Telecom in a transaction worth about $5.6 billion. Level 3, one of the biggest backhaul Internet service providers, gets direct access to large- and medium-sized business customers. SanDisk signed a deal to acquire fellow flash memory maker Fusion-io in an all-cash deal that values it at $11.25/share, or $1.1 billion.

- Cable crossed the 1.70 level, which has been a point of resistance on GBP/USD's upward march. The pair saw its highest level since July 2009 around 1.7050 as traders continue to position themselves for rate hikes later this year. Multiple BoE figures through their weight behind hikes, with dove Miles saying there was a clear chance of a hike before next spring and hawk Weale saying that the BoE could tighten policy even with greater labor market slack. EUR/USD continues to hold above the post-ECB low of 1.3503, and fluctuated between 1.3510 and 1.3644.

- The slowdown in the Chinese property sector became ever more apparent after the May price data revealed even top-tier cities are no longer immune to the downturn. Prices rose in just 15 out of 70 cities (vs. 44 in the prior month) while falling in 35, versus just 8 prior. Average prices across 70 cities were also down for the first time in two years, falling 0.2% m/m. Policymakers in Beijing have yet to show any signs of panic, with PBoC official referring to the downturn as "necessary and inevitable," however foreign investors are taking note. May FDI slowed to a one-year low of +2.8% YTD and outright fell by -6.7% y/y for the month of May alone. Traders will tune in for China's flash manufacturing PMI figures on Sunday evening for signs of further recovery in the HSBC index.

- Japan saw a mixed round of merchandise trade data, as deficit narrowed more than expected but overall exports fell for the first time in 15 months. Shipments to China rose just 0.4% vs 9.8% in April and US exports fell for the first time in 17 months by 2.8%. The smaller deficit was largely the result of the unexpected decline in imports, as Japan's crude oil intake slumped by nearly 20%. Late in the week, Japan's Cabinet Office cut its assessment of imports for the third consecutive month while maintaining its overall view of economy maintaining the course of moderate recovery.

>>>US Close Dow+0,15% S&P+0,17% Nasdaq+0,21%

Closing Market Summary: Stocks End Strong Week on Upbeat Note

The major averages posted modest Friday gains to punctuate an upbeat week that saw relative strength among small-cap stocks. Fittingly, the Russell 2000 (+0.3%) settled just ahead of the S&P 500 (+0.2%). The two indices extended their weekly gains to 2.2% and 1.6%, respectively.

The S&P 500 spent the entire session in the green, but was limited to a four-point range as top-weighted sectors traded in mixed fashion. The modest gains were supported by the relative strength among groups like energy (+1.0%), health care (+0.8%), industrials (+0.4%), and financials (+0.3%), but the underperformance of consumer discretionary (-0.4%), technology (-0.3%), and consumer staples (-0.4%) kept the index from pulling too far away from its flat line.

The energy sector seized the lead shortly after the open and held that spot into the close. The group locked in a 2.7% gain for the week, which was driven in part by oil supply concerns following the escalation of sectarian tensions in Iraq. For its part, crude oil rose 0.7% to $106.81/bbl.

Commodities in general enjoyed a strong week with gold and silver futures adding to yesterday's big gains. Gold futures added $2.30 to $1316.60/ozt, bringing their total weekly advance to 3.3%. Silver, meanwhile, tacked on another 1.1% today to settle at $20.95/ozt, which represented a 6.6% gain for the week. Interestingly, miners were not boosted by the strength in metals as the Market Vectors Gold Miners ETF (GDX 25.82, -0.27) fell 1.0%.

Elsewhere, the health care sector made a noteworthy contribution to the advance with biotechnology powering the move. The iShares Nasdaq Biotechnology ETF (IBB 255.64, +5.08) rose 2.0%, extending its June gain to 6.7%.

On the flip side, the top-weighted sector—technology—kept the lid on the market as Oracle (ORCL 40.82, -1.69) weighed. The stock fell 4.0% after missing earnings and revenue estimates. High-beta chipmakers lagged for the better part of the session, but climbed into the close (PHLX Semiconductor Index +0.2%).

Also of note, the consumer discretionary space was pressured by quick-service restaurants following disappointing quarterly results from Darden Restaurants (DRI 47.58, -1.94).

The modest gains in the market did not stop some participants from demanding volatility protection as the CBOE Volatility Index (VIX 10.67, +0.05) rose 0.5% after marking a new low for the year.

On the fixed income side, the 10-yr note edged up one tick with its yield ending at 2.62%.

Participation was well above average, but that was a function of today's quadruple witching and S&P rebalancing. As a result, more than 1.7 billion shares changed hands at the NYSE floor.

On Monday, the Existing Home Sales report will be released at 10:00 ET.

* S&P 500 +6.2% YTD  * Nasdaq Composite +4.6% YTD  * Dow Jones Industrial Average +2.2% YTD  * Russell 2000 +2.1% YTD 

>>> Alstom French govt to acquire 20% stake in Alstom from Bouygues, making it t


Alstom French govt to acquire 20% stake in Alstom from Bouygues, making it the main shareholder; current offers for Alstom assets do not fulfill the govt's requirements, deal negotiations to continue - press
- Govt to present conditions to General Electric CEO Immelt - France to enter alliance with GE 
- Alstom's nuclear business must remain part of a 50/50 joint venture 
- Alstom should purchase GE's signaling business for €1B, GE to acquire Alstom's gas business