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BN 02/13 05:13 *PEUGEOT CAPITAL INCREASE MAY BE FOR UP TO EU4B, TRIBUNE SAYS

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Peugeot Capital Increase May Be for Up to EU4B, Tribune Says 2014-02-13 05:15:56.352 GMT

By David Whitehouse Feb. 13 (Bloomberg) -- Agreement with Dongfeng Motor and the French state has been reached, La Tribune says, citing unidentified people familiar with the matter.

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To contact the editor responsible for this story: David Whitehouse at +33-1-5365-5059 or dwhitehouse1@bloomberg.net

After Hours Summary: IO +20.6%, SKX +13.2%, BGC +12.3%, CTRP +6.9%, ANGI -14.7%, ITRI -14.5% following earnings/guidance

After Hours Gainers: Companies trading higher in after hours in reaction to earnings: IO +20.6%, SKX +13.2%, BGC +12.3%, CTRP +6.9%, CBS +4.3%, CPA +3.6%, NEWP +3.2%, NVDA +3.1%, STAG +3%, TAL +2.8%, CAKE +1.4%, SPRT +1.4%, AEL +1.4%, NRP +1.2%, ROVI +0.8%, ACC +0.5%, COHU +0.3%, CJES +0.3%, MET +0.2%, EEP +0.2%, IOSP +0.1%, AMAT +0.1%

Companies trading higher in after hours in reaction to news: BIOD +12.2% (announced plans to advance BIOD-531 based on positive clinical trial results), PAL +9.4% (reported positive production ramp progress), CBS +4.3% (announced plans for a $1.5 bln accelerated share repurchase), AVP +3.4% (WSJ reporting co may have reached a settlement in bribery case), RGR +2.2% (announced the expansion of its stock repurchase program to $25 mln), APA +1.8% (agreed to sell all of its operations in Argentina to YPF Sociedad Anonima (YPF) for cash payment of $800 mln plus the assumption of $52 mln of bank debt as of June 30, 2013), BYI +0.9% (CEO disclosed buying 15K shares at $67.36-67.70 on 2/12, worth ~$1.0 mln)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings: ANGI -14.7%, ITRI -14.5%, PRCP -13.7%, LF -10.8%, URS -8.8%, WFM -7.2%, LPSN -5%, FNF -4.5%, CSCO -3.7%, TNGO -3.5%, SPWR -3.2%, NTAP -3.2%, ECOL -2.7%, NTES -2.5%, BGS -2.3%, BLKB -1.7%, MDLZ -1.7%, MORN -1.5%, INT -1%, Z -1%, ICUI -0.9%, ATNY -0.7%, CTL -0.6%, KGC -0.6%, CXP -0.5%, CXW -0.3%, TCO -0.1%, DDR -0.1%

Companies trading lower in after hours in reaction to news: DRRX -28.7% (received Complete Response letter from FDA for POSIDUR (SABER-Bupivacaine)), MDCO -13.8% (confirmed that an FDA Advisory Committee recommended against antiplatelet therapy cangrelor), VRNG -3.9% (conducted business update call; co has not determined what it would do with a large cash position), ATRC -3.4% (announced commencement of public offering of common stock; selling shareholders are also involved in the offering), CFX -1.6% (announced offering of 6.5 mln shares of common stock)

Apple Says Suppliers Forgo a Disputed Metal

SAN FRANCISCO— Apple Inc. AAPL -0.01% said it has verified that its suppliers do not use tantalum—a key metal used in electronic components—secured from sources that use the mineral's sale to provide funds for violent armed groups in war-torn parts of Africa.

The procurement of tantalum—along with gold, tin and tungsten—has become a hot-button subject in the consumer electronics industry because minerals from some of the mines in and around the Democratic Republic of the Congo are blamed for paying for the fighting in the region.

In the company's 2014 Supplier Responsibility report published on Wednesday, Apple identified that its suppliers use 20 global smelters or refiners whose tantalum has been verified by third-party auditors as what the industry calls "conflict-free." Jeff Williams, Apple's senior vice president of operations, said the company has had success in pressuring tantalum smelters to agree to a third-party audit because Apple and other consumer electronics firms are the biggest users of the metal.

For gold, tin, and tungsten, Apple has had less success because it does not have as much financial leverage to pressure the smelters. It identified 166 smelters of the other three minerals used by its suppliers. The majority of those firms have not agreed to an audit. By outing the smelters who haven't agreed to be audited, Mr. Williams said Apple is hoping to affect broader change.

"We're pushing hard on the other minerals – tin, tungsten and gold – to make sure that we have a critical mass of smelters so we can really change the situation on the ground in the DRC," said Mr. Williams.

Instead of shunning minerals from the region altogether—a move that could have negative economic consequences for the area—Apple said it is working with third-party auditors to identify the good mines from the bad ones.

Other companies are also moving in the same direction. Last month, Intel Corp. INTC +0.33% Chief Executive Brian Krzanich said it has worked with international groups and experts to make sure all the materials it uses come from reputable mines in the region, pledging that all Intel microprocessors produced in 2014 will be conflict-free.

In 2012, the Securities and Exchange Commission passed a rule requiring companies to scour their supply chains for metals and minerals that are tied to armed conflicts in and around the Congo.

Separately, Apple said in its supplier report that it performed 15% more audits of its suppliers' factories in 2013, compared with the previous year. It also said the company's suppliers registered in 2013 an average of 95% compliance for its rule of a maximum 60-hour workweek. That's an improvement from 92% in 2013.

Comcast Acquiring Time Warner Cable In All Stock Deal Worth $45.2 Billion

Deal Combines No. 1 and No.2 Cable Operators

Comcast Corp. CMCSA +0.44% is buying Time Warner Cable TWC +0.30% for $45 billion in stock, combining the nation's two biggest cable operators, according to people familiar with the situation.

The boards of both companies have approved the deal, which will be announced in the morning, one of the people said.

With the deal, Comcast almost certainly ends an eight month takeover battle for TWC waged by fourth biggest cable operator Charter Communications Inc. CHTR -0.24% and its biggest shareholder, Liberty Media Corp. LMCA +0.87% , whose chairman is cable pioneer John Malone.

By negotiating the merger, Comcast Chief Executive Brian Roberts ensures his dominance of the U.S. cable industry will be maintained.

Charter's pursuit of TWC, which began after Liberty bought a 27% stake in Charter about a year ago, had raised the possibility that Mr. Malone would emerge as a rival to Mr. Roberts. Mr. Malone once led the U.S. cable industry but sold his previous cable firm, Tele-Communications Inc. in 1999.

In the deal, Time Warner Cable shareholders will receive $158.82 a share in stock for their shares, about $23 a share above where TWC has been trading. Charter has made three offers, the most recent of which was valued at $132.50, all of which were rejected by TWC as too low. Time Warner Cable Chief Executive Rob Marcus had said TWC wanted $160 a share.

News of the deal comes just a couple of days after Charter ratcheted up the pressure on TWC by nominating a group of 13 people as candidates for TWC's board, ahead of this spring's annual meeting.

Time Warner Cable had long seen Comcast as a preferred merger partner. Last year, Time Warner Cable approached Comcast about a deal, hoping to ward off Charter. The two companies had talks off and on. But until a week ago there were signs that Comcast was leaning toward striking a deal with Charter instead.

Comcast and Charter were in talks about a deal where it would endorse Charter's bid in exchange for an agreement where it would buy some East Coast Time Warner Cable systems.

But last Tuesday Comcast and Time Warner Cable reinitiated talks, when Mr. Roberts reached out to Time Warner Cable's Mr. Marcus, one of the people said. Comcast was very uncomfortable with the idea of a proxy fight that Charter was beginning to wage, another of the people said.

Time Warner Cable, in turn, was uncomfortable with the amount of debt Charter would have layered onto the company had it succeeded in buying it, one of the people said. Combined with Comcast, Time Warner Cable would have much more conservative leverage ratios than it would have, had Charter succeeded.

The deal faces high regulatory barriers. Fresh off a defeat over its "Open Internet" rules, the Federal Communications Commission may seek to assert its authority in a merger of the two biggest cable operators, analysts have said.

Comcast not only serves more pay TV customers than any other company in the U.S., nearly 22 million video subscribers, but it also owns entertainment company NBCUniversal, parent of the NBC broadcast network and several big cable channels as well as Universal film studio. Time Warner Cable serves about 11 million video subscribers, although as part of the deal, Comcast has agreed to divest three million subscribers, the people said. Those divestitures will keep its ownership of the pay TV market below 30%, the people said.

Comcast hopes to convince regulators that because cable companies don't compete, their deal should go through.

Merck's Sale of Consumer Business Could Fetch $10 Billion Merck's Efforts to Sell Portfolio Including Coppertone and Claritin Kicks Into High Gear

Merck MRK -1.26% & Co.'s effort to sell its portfolio of well-known consumer brands including Coppertone sun screen and Claritin allergy pills is kicking into high gear, with consumer and health care giants expected to put in bids that could top $10 billion, according to people familiar with the matter.

Merck, which has said publicly it is exploring options for the business, has already received preliminary offers for it, the people said. Merck officials will begin meeting with possible buyers next week, and final bids will likely be due late next month, one of the people said.

Analysts have speculated ever since Merck inherited the consumer business in its 2009 acquisition of Schering-Plough that the health care giant would unload it in some fashion, perhaps through a sale or joint venture. But after recent talks for a swap of the business for Novartis AG NOVN.VX +1.59% 's vaccine and animal-health units cooled, Merck turned its attention toward an outright sale, according to people familiar with the matter. Merck Chief Executive Ken Frazier has often said the consumer business is heavily concentrated in North America and doesn't have sufficient global scale, and that the company must figure out whether it is better off under different ownership.

In January, Merck said it would explore strategic options for both its consumer-care and the animal-health units. The company said it expects to complete the process and take action, if any, by year-end.

Merck reported global consumer-care sales of $1.9 billion for 2013, or about 4% of total company revenue of $44 billion. The U.S. accounted for $1.33 billion of the consumer unit's sales total, with international markets contributing $568 million. The biggest product in the portfolio is an over-the-counter version of allergy drug Claritin, which had sales of $471 million last year. The division also includes MiraLAX constipation medicine and Afrin nasal decongestant, as well as Dr. Scholl's foot-care products and Lotrimin and Tinactin antifungals.

The business has more than $550 million of earnings before interest, taxes, depreciation and amortization, the person familiar with the matter said. Past deals have valued such assets at multiples approaching 20 times Ebitda, which would give Merck's consumer business a price tag exceeding $10 billion.

Merck has been coping with an aging pipeline and competition for its top-selling product, Januvia. The diabetes drug's world-wide sales in 2013 were $4 billion, down 2% from the year earlier. Merck has suffered several setbacks trying to develop new drugs. As a result, Mr. Frazier has announced plans to cut 20% of the company's workforce and named a new research and development chief, Roger Perlmutter, who is restructuring the company's laboratories.

While the consumer business represents a relatively small chunk of a company that has a market value of more than $160 billion, selling it would be a milestone in Merck's effort to concentrate on therapeutic areas where it feels it is strongest, including drugs for cancer and diabetes as well as vaccines.

It would also represent a relatively big takeover at a time when deals that measure in the double-digit billions are proving few and far between.

Notable after hours earnings movers: NEWP +8.6%, SKX +8.4%, CBS +3.2%, ANGI -11.4%, PRCP -10.9%, ITRI -10.7%

Companies trading higher after hours following earnings/guidance:

NEWP +8.6%, SKX +8.4%, CBS +3.2%, ROVI +3.1%, NVDA +1.9%, SPRT +1.4%, AEL +1.4%, BGS +1.1%, Z +0.8%, ACC +0.5%, COHU +0.3%

Companies trading lower after hours following earnings/guidance:

ANGI -11.4%, PRCP -10.9%, ITRI -10.7%, URS -9%, LF -9%, LPSN -7.1%, WFM -5.4%, SPWR -4.1%, NTAP -3.7%, TNGO -3.7%, CSCO -2.6%

Closing Market Summary: Stocks End Flat After Four Days of Gains

Equity indices took a bit of a breather on Wednesday after the S&P 500 surged nearly 4.5% in the six sessions since February 3. The benchmark index shed less than a point while the Dow Jones Industrial Average slipped 0.2%.

Overall, the session was very quiet as the key averages respected narrow ranges. The S&P 500 spent the bulk of the trading day near its flat line while the Nasdaq (+0.2%) outperformed.

Similar to the major averages, most individual sectors never deviated too far from their unchanged levels. The largest S&P 500 sector, technology (+0.3%), finished in the lead thanks to chipmakers. Intel (INTC 24.55, +0.08) added 0.3% while the broader PHLX Semiconductor Index rose 0.9%.

Outside of technology, consumer discretionary (+0.1%) and industrials (+0.2%) were the only other advancers among cyclical groups. Defense contractors outperformed (PHLX Defense Index +0.5%) while Deere (DE 86.90,-0.56) fell 0.6% despite beating on earnings and revenue.

Also of note, two of yesterday's leaders—energy (-0.4%) and materials (-0.3%)—finished among today's laggards. However, the pair still fared a bit better than the consumer staples sector, which lost 0.5% as tobacco names lagged after Lorillard (LO 47.47, -2.48) reported disappointing earnings.

Other countercyclical groups were little changed with telecom services (+0.3%) ending modestly higher while health care (-0.1%) and utilities (-0.1%) finished in the red.

Treasuries posted their third day of losses as the 10-yr yield rose three basis points to 2.76%. Interestingly, the retreat in one safe-haven asset was accompanied by an increase in another. Gold futures saw their fourth day of gains, climbing 0.4% to $1294.90/ozt.

Today's participation was well below average as less than 630 million shares changed hands at the NYSE.

Economic data was limited to just two reports:

* The weekly MBA Mortgage Index slipped 2.0% to follow last week's'uptick of 0.4%.  * January Treasury Budget showed a deficit of $10.40 billion, which followed the prior month's surplus of $2.90 billion. The consensus expected the deficit to hit $10.00 billion. 

Among overseas news of note, Italian Prime Minster Enrico Letta held a press conference amid increasing calls for his resignation, making way for the leader of the Democratic Party, Matteo Renzi. In his remarks, Mr Letta asked for ‘clarity,' saying, ‘He who wants to replace me must be clear about his intentions.' Even though the political future of Italy remains uncertain, Italian stocks appeared unconcerned with the situation as the MIB gained 1.3%.

Tomorrow, weekly initial claims and January retail sales will be reported at 8:30 ET while the December Business Inventories report will cross the wires at 10:00 ET. Also of note, Fed Chair Janet Yellen was scheduled to appear before the Senate Banking Committee for the second part of the semiannual testimony on monetary policy, but the hearing has been postponed due to weather.

* Nasdaq Composite +0.6% YTD * S&P 500 -1.6% YTD * Russell 2000 -2.5% YTD * Dow Jones Industrial Average -3.7% YTD