(BFW) Eurazeo Said to Appoint Rothschild to Explore IPO for Europcar

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BN 02/19 15:47 Eurazeo Said to Appoint Rothschild to Explore IPO for Europcar

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Eurazeo Said to Appoint Rothschild to Explore IPO for Europcar 2014-02-19 15:51:51.707 GMT

By Heather Burke Feb. 19 (Bloomberg) -- Eurazeo, a French investment firm, hired Rothschild to advise on a possible IPO of Europcar, Bloomberg News’s Kiel Porter and Ruth David reported, citing unidentified people with knowledge of the matter. * Considering both an IPO in France for Europcar or selling it to another company, with Hertz among the potential buyers, said 2 people, who asked not to be identified because they weren’t authorized to speak publicly * A final decision hasn’t been made, the people said.

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--Editor: James Ludden

To contact the reporter on this story: Heather Burke in London at +44-20-7673-2044 or hburke2@bloomberg.net

To contact the editor responsible for this story: James Ludden at +44-20-7673-2645 or jludden@bloomberg.net

RTR- Bankers ready $8.35 billion debt financing for Morrisons sale


(Reuters) - Bankers are working on debt financing packages of around 5 billion pounds ($8.35 billion) to back a potential sale of British supermarket chain Wm Morrison Supermarkets (MRW.L) to private equity funds, banking sources said on Wednesday.

Morrisons, which is 9.5 percent owned by the founding family, has contacted buyout firms to guage their interest in taking the business private after a fall in Christmas sales.

Cash-rich private equity firms are keen to do new buyouts after low levels of M&A activity in 2013, although the large size of this deal may mean that they have to work together, bankers said.

"The size of the transaction, which could get as high as 10 billion pounds, could require a number of private equity players to team up, given the size of the equity cheque needed," a senior leveraged loan banker said.

Morrisons declined to comment.

Bradford-based Morrisons, which is the UK's fourth-largest supermarket operator, was founded in 1899 and listed on the London Stock Exchange in 1967.

Morrisons, which has lucrative property assets, has already been considered as a takeover target by CVC, which studied a potential bid in 2007.

Morrisons' shareholders and retail analysts are doubtful that a take-private deal will happen but bankers and sponsors have been in talks for more than a month to see if the financing is theoretically possible, a second banker said.

A debt package of around 5 billion pounds would be one of the largest buyout financings since the financial crisis. A financing would be a mix of loans and high-yield bonds in sterling, dollars and euros to maximise liquidity, two bankers said.

The loan component is expected to have an 'opco-propco' structure which is commonly used on loans for companies with property assets. Property company debt is serviced with rent payments from an operating company, they added. ($1 = 0.5989 British pounds)

>>> Zale (ZLC +40%) and Signet Jewelers (SIG +10%) merger news may lift jewelry

Zale (ZLC +40%) and Signet Jewelers (SIG +10%) merger news may lift jewelry retail names (NILE, KGJI, MOV, SWGAY, TIF, FOSL on radar)

Details :
Zale and Signet Jewelers (SIG) confirm agreement for Signet to acquire all of the issued and outstanding stock of Zale for $21.00 per share in cash consideration

  • Signet Jewelers (SIG) and Zale announced that they have entered into a definitive agreement for Signet to acquire all of the issued and outstanding stock of Zale for $21.00 per share in cash consideration.
  • The acquisition strengthens Signet's omni-channel presence with some of the most recognizable jewelry store brands in the world, each operating as stand-alone brands including: Kay Jewelers, Jared The Galleria Of Jewelry, H.Samuel, Ernest Jones, Zales, and Peoples.
  • Signet's offer represents a premium of 41% over Zale's closing price as of Feb 18, 2014. The transaction would be valued at ~ $1.4 bln, representing an enterprise value to last twelve months Oct-13 Adjusted EBITDA multiple of 7.4x. As part of the transaction, Signet has entered into a voting and support agreement with Golden Gate Capital, the beneficial owner of ~ 22% of Zale's common stock. The transaction is expected to be high single-digit percentage accretive to earnings in the first full fiscal year after the close of the transaction, excluding acquisition accounting adjustments and one-time transaction costs.
  • The acquisition is expected to be financed through bank debt, other debt financing and the securitization of a significant portion of Signet's accounts receivable portfolio.

>>> US Filings, Offerings and Pricings

Filings, Offerings and Pricings
Filings:
  • Advaxis (ADXS) filed for a $50 mln common stock shelf offering.
  • MarkWest Energy (MWE) filed for a ~1.2 bln common unit offering representing limited partner interests in MarkWest Energy Partners.
  • ComTech Consolidation Grp (CCGI) filed for a ~43.18 mln share common stock offering by selling security holders.
Offerings:
  • Five Oaks Investment (OAKS) announced a 3 mln share common stock offering.
  • Arrowhead Research (ARWR) announced proposed underwritten offering of common stock.
  • Kinder Morgan Partners (KMP) is commencing underwritten public offering of 6.9 mln common units representing limited partner interests.

>>> US Gapping up

Gapping up

In reaction to strong earnings/guidance: UCTT +21.4% (also discloses that COO will resign, effective on or about March 10, 2014), CG +11.4%, ZBRA +8.6%, GRMN +7.7%, COLM +7.1%, NOR +6.9%, ORIG +5.5%, HL +5.3% (also reports record silver and gold reserves: Silver reserves increase by 13% and gold reserves by 190% over 12/31/12), HSTM +4.6% (light volume), LL +4.2%, CF +3.9%, NBR +2.6%, SAVE +1.6%, ADI +1.5% (also increases quarterly cash dividend 9% to $0.37 per share from $0.34 per share and increases share buyback authorization to $1 bln), HLF +1.5%, SAH +1.4% (light volume), MGM +1.1%, HST +0.7% (light volume), DRYS +0.5%.

M&A news: ZLC +40.2% and SIG +18.4% (Zale and Signet Jewelers confirm agreement for Signet to acquire all of the issued and outstanding stock of Zale for $21.00 per share in cash consideration).

Other news: CHTP +37.4% ( confirms FDA accelerated approval of NORTHERA (droxidopa) for the treatment of symptomatic NOH), CRDS +11.6% ( files patent infringement suits against Cisco, NetApp, and Quantum), CAK +7.5% (announces FPSO Contract for Production Operations Offshore Nigeria), LLY +2.5% (announces Ramucirumab Phase III Lung cancer trial meets primary endpoint of overall survival), USU +1.9% (late spike on DoE approval of nuclear backing; disclosed details with amendment to Doe cooperative agreement - provides funding for a cost-share RD&D program ), URRE +1.4% (late spike on DoE approval of nuclear backing), ISIS +1.2% (still checking), GG +1.1% (announces extension of date to acquire common shares of Osisko Mining Corporation), MDBX +0.7% (modestly rebounding following exec comments on CNBC), JOSB +0.7% ( announces commencement of tender offer to repurchase up to $300 mln in value of shares of its common stock at price of $65.00 per share), RDS.A +0.2% ( sold some downstream assets to Abu Dhabi Investment Council and others for ~$2.4 bln, according to reports).

Analyst comments: ACT +2.9% (upgraded to Buy from Neutral at Goldman; tgt to $235 from $200 at BofA/Merrill; Barron's profiles positive view), G +2.5% (upgraded to Buy from Neutral at Citigroup), URI +1% (initiated with a Buy at Stifel), GOGO +1% (upgraded to Overweight from Equal Weight at Evercore ), M +0.7% (initiated with a Buy at Citigroup; tgt $63)