RTR : Investor seeks board seats at Ariad Pharmaceuticals -sources

Investor seeks board seats at Ariad Pharmaceuticals -sources

Feb 6 (Reuters) - A large shareholder is seeking to get at least two board seats at Ariad Pharmaceuticals Inc , the drugmaker grappling with safety concerns involving its leukemia drug Iclusig, according to people familiar with the matter.

Sarissa Capital Management LP, an activist fund run by Alex Denner - investor Carl Icahn's former healthcare lieutenant - disclosed in October that it has taken a 6.2 percent stake in Ariad, becoming the company's second-largest shareholder.

Sarissa has spoken to the biotechnology company about adding a few of its own directors to the board and is interested in reaching a settlement before a proxy deadline, the people said, asking not to be named because the matter is private.

The deadline for nominating a slate of directors to Ariad's board is Feb. 20.

Ariad, which has an eight-member board, has three seats coming up for re-election at it annual shareholder meeting, expected to occur around the third week of June. The exact date has not been set yet.

Representatives for Ariad and Sarissa Capital declined to comment.

Ariad is Sarissa's third publicly disclosed investment since launching last year, following an investment in Vivus Inc and one in Astex Pharmaceuticals Inc, which agreed to sell to Japan's Otsuka Holdings Co in October.

Sarissa joined First Manhattan in a successful proxy battle at Vivus that placed six nominees from the investors and a new chief executive on the company's board, giving the dissidents a majority.

In October, Ariad suspended sales of Iclusig, its only approved drug, after an investigation by the U.S. Food and Drug Administration found that a significant number of patients developed life-threatening blood clots or narrowing of the veins.

Sales resumed in January, although to a smaller group - patients with a specific genetic mutation and those who are unable to use alternative treatments such as Novartis AG's Gleevec or Bristol-Myers Squibb Co's Sprycel.

Ariad's shares, which plunged to as low as $2.15 after news of the suspension in October, have since recovered to around $7.17, valuing the biotech company at more than $1.3 billion.

>>> US Notable after hours earnings movers

Notable after hours earnings movers: UEPS +21.6%, CYTK +15.4%, LCI +14%, ELON -18.5%, MCZ -14.9%, FWM -12.6%
Companies trading higher after hours following earnings/guidance:

UEPS +21.6%, CYTK +15.4%, LCI +14%, ATHN +13.9%, BEBE +9.9%, OUTR +9.1%, UBNT +7.5%, ATVI +6.9%, ADEP +5.9%, MXL +6.4%, EXPE +6.7%

Companies trading lower after hours following earnings/guidance:

ELON -18.5%, MCZ -14.9%, FWM -12.6%, EGOV -11%, PXLW -9.2%, LNKD -7.9%, IMI -5.5%, GIGA -4.7%, NCR -5.7%, OPEN -4.7%, KIRK -0.6%

>>> VeriSign beats by $0.05, reports revs in-line

VeriSign beats by $0.05, reports revs in-line 

Deferred revenues on Dec. 31, 2013, totaled $856 million, an increase of $43 million from year-end 2012. Verisign Registry Services added 1.29 million net new names during the fourth quarter, ending with 127.2 million active domain names in the zone for .com and .net, which represents a 5 percent increase over the zone at the end of the fourth quarter in 2012. In the fourth quarter, Verisign processed 8.2 million new domain name registrations for .com and .net as compared to 8.0 million for the same period in 2012. During 2013, Verisign processed 34.0 million new domain name registrations as compared with 33.1 million for 2012.

>>> LinkedIn beats by $0.01, beats on revs; guides Q1 and FY14 adj. EBITDA and r

--> -7,5% in After Hours

LinkedIn beats by $0.01, beats on revs; guides Q1 and FY14 adj. EBITDA and rev below consensus; acquires Bright for ~$120 mln (mostly in stock)

Reports Q4 (Dec) earnings of $0.39 per share, $0.01 better than the Capital IQ Consensus of $0.38; revenues rose 47.3% year/year to $447.2 mln vs the $437.92 mln consensus; adj. EBITDA $111 mln vs. $98-100 mln guidance and $108 mln estimates.
Revenue from Talent Solutions products totaled $245.6 million, an increase of 53% compared to the fourth quarter of 2012. Talent Solutions revenue represented 55% of total revenue in the fourth quarter of 2013, compared to 53% in the fourth quarter of 2012.
Revenue from Marketing Solutions products totaled $113.5 million, an increase of 36% compared to the fourth quarter of 2012. Marketing Solutions revenue represented 25% of total revenue in the fourth quarter of 2013, compared to 27% in the fourth quarter of 2012.
Revenue from Premium Subscriptions products totaled $88.1 million, an increase of 48% compared to the fourth quarter of 2012. Premium Subscriptions represented 20% of total revenue in the fourth quarter of 2013 and 2012.

Co issues downside guidance for Q1, sees Q1 revs of $445-460 mln vs. $470.85 mln Capital IQ Consensus; adj. EBITDA $106-108 mln vs. $123 mln ests.

Co issues downside guidance for FY14, sees FY14 revs of $2.02-2.05 bln vs. $2.17 bln Capital IQ Consensus; adj. EBITDA ~$490 mln vs. $576 mln ests.

Co also acquire Bright, a co that leverages data insights and matching technology to connect prospects and employers. The transaction is valued at ~$120 million, subject to adjustment, and consists of ~73 percent stock and ~ 27 percent cash. The stock being issued in the transaction will be done so in a private placement. Subject to the completion of customary closing conditions, the acquisition is expected to close during the first quarter of 2014.

>>> Activision Blizzard beats by $0.06, beats on revs; guides Q1 EPS below conse

Activision Blizzard beats by $0.06, beats on revs; guides Q1 EPS below consensus, revs in-line; guides FY14 EPS and revs below consensus 

Reports Q4 (Dec) non-GAAP earnings of $0.79 per share, $0.06 better than the Capital IQ Consensus Estimate of $0.73; non-GAAP revenues fell 12.4% year/year to $2.27 bln vs the $2.23 bln consensus. For Q1, co sees non-GAAP EPS of approximately $0.09 vs. $0.11 Capital IQ Consensus Estimate; sees Q1 non-GAAP revs of approximately $675 mln vs. $676.2 mln Capital IQ Consensus Estimate. Co issues downside guidance for FY14, sees noon-GAAP EPS of approximately $1.26 vs. $1.28 Capital IQ Consensus Estimate; sees FY14 non-GAAP revs of approximately $4.60 bln vs. $4.66 bln Capital IQ Consensus Estimate.

>>> US Close Dow+1,22% S&P+1,24% Nasdaq+1,14%

Closing Market Summary: S&P 500 Regains 100-Day Moving Average

The stock market enjoyed a broad-based rebound on Thursday that placed the Dow Jones Industrial Average (+1.2%) back above its 200-day moving average (15483). The S&P 500 also gained 1.2%, ending just north of its 100-day average (1772) after flirting with that level during the afternoon.

Stocks began on an upbeat note and climbed through the first 90 minutes of action. Much of the advance was paced by groups that faced aggressive selling during the recent pullback, suggesting short covering played a role in the rally.

Yen weakness also factored into the advance as the retreat of the Japanese currency calmed fears about some participants being forced out of yen-based carry trades due to strength in the funding currency. The dollar/yen pair ended the New York session right above 102.00 after starting the day near 101.20.

The consumer discretionary group (+2.1%) ended in the lead with media names making a significant contribution after Dow component Disney (DIS 75.56, +3.80) beat its Capital IQ consensus estimate by 13 cents on in-line revenue.

Elsewhere among discretionary shares, retailers and homebuilders displayed industry-wide strength. The SPDR S&P Retail ETF (XRT 80.00, +1.88) gained 2.4% and iShares Dow Jones US Home Construction ETF (ITB 24.82, +0.75) jumped 3.1%.

Also of note, the largest S&P 500 sector, technology (+1.2%) ended in line with the broader market. Most large cap components displayed strength, but Facebook (FB 62.16, -0.03) ended little changed after its peer, Twitter (TWTR 50.03, -15.94), reported earnings. Although the social media company announced above-consensus results, its Monthly Active Users metric showed disappointing growth.

On the countercyclical side, all four groups—consumer staples (+1.1%), health care (+0.5%), utilities (+0.6%), and telecom services (+0.1%)—were unable to keep pace with the S&P 500. Notably, the staples sector received support from Green Mountain Coffee Roasters (GMCR 102.10, +21.22) after the company announced a strategic partnership with Coca-Cola (KO 38.03, +0.42), in which KO will purchase a 10% minority stake in GMCR. In addition, GMCR reported a bottom-line beat on below-consensus revenue.

Treasuries ended near their lows with the 10-yr yield up three basis points at 2.71%.

Participation was a bit above average as 730 million shares changed hands at the New York Stock Exchange.

Today's economic data featured three reports:
The initial claims level settled back into the 330,000 range this week as the initial claims level fell to 331,000 from an upwardly revised 351,000 (from 348,000). The consensus expected the initial claims level to fall to 335,000.
Fourth quarter nonfarm labor productivity increased 3.2% while the consensus expected an increase of 2.4%. That was down from an upwardly revised 3.6% increase (from 3.0%) in the third quarter. Profit growth outperformed labor gains in the fourth quarter. Compensation per hour increased only 1.5%, down from a 1.6% increase in the third quarter. With compensation increasing at a slower rate than productivity, unit labor costs fell 1.6%. That was the third quarterly decline of 2013.
The U.S. trade deficit for December widened to $38.7 billion from an upwardly revised $34.6 billion (from $34.3 billion). The consensus expected the trade deficit to increase to $36.0 billion. The Bureau of Economic Analysis assumed the trade deficit in December increased to around $37.0 billion in the advance estimate for fourth quarter GDP. The slightly higher than expected deficit will likely contribute to lower GDP growth in the second estimate.
Tomorrow's data will focus on jobs with the nonfarm payrolls report for January set to be released at 8:30 ET. Hourly earnings and average workweek will also be announced at 8:30 ET while the December consumer credit report will cross the wires at 15:00 ET.

· Nasdaq Composite -2.9% YTD 
· S&P 500 -4.1% YTD 
· Russell 2000 -5.1% YTD 
· Dow Jones Industrial Average -5.7% YTD

>>> Tempur Sealy Int'l beats by $0.03, beats on revs; guides FY14 revs in-line

Tempur Sealy Int'l beats by $0.03, beats on revs; guides FY14 revs in-line

Reports Q4 (Dec) earnings of $0.66 per share, $0.03 better than the Capital IQ Consensus Estimate of $0.63; revenues rose 98.8% year/year to $678.1 mln vs the $664.47 mln consensus.
Gross profit margin was 40.2% as compared to 50.0% in the fourth quarter of 2012. The gross profit margin decreased primarily as a result of the inclusion of Sealy, which has lower margins than the Tempur North America and Tempur International segments, and changes in product mix, offset partially by lower sourcing costs.
Co issues guidance for FY14, sees EPS of $2.60-2.85, including $0.10 negative FX effects, may not be comparable to $2.91 Capital IQ Consensus Estimate; sees FY14 revs of $2.8-2.9 bln vs. $2.84 bln Capital IQ Consensus Estimate.
"Our full year 2014 net sales guidance range assumes growth of approximately 1% to 5% compared to 2013, had we owned Sealy for all of 2013. We expect our margins to improve in 2014 resulting from cost synergies and leverage, offset partially by investments in new products, marketing and R&D. In addition, our adjusted EBITDA and adjusted EPS guidance reflects forecasted unfavorable foreign exchange, which is expected to have a negative earnings impact of approximately $9 million, or $0.10 per share."

>>> US Option Trade - Sprint (S US)

* S Mar 7 puts are seeing heavy volume interest today with ongoing TMUS speculation (the underlying stock pulling back from yesterday's late strength on chatter of financing deal). The S Mar 7 puts have traded more than 52K contracts vs only 710 open interest (implied vol: ~74%, prev day implied vol: 68%) -- two transactions of ~31K and ~10K contracts traded near the offer. Co reports earnings Feb 11 before the open.

WSJ : Peugeot Looks to Approve Stronger Dongfeng Tie-Up, Capital Increase

Peugeot Looks to Approve Stronger Dongfeng Tie-Up, Capital Increase
French Auto Maker Looks to Raise €3 Billion

PARIS—French car maker PSA Peugeot Citroën UG.FR +2.89% said Thursday that its board aims to approve terms of a deeper tie-up with Chinese partner Dongfeng Motor Co., as well as a €3 billion capital increase, at a Feb. 18 meeting.

The company, which said last month that it was holding talks with both Dongfeng and the French government over a possible capital increase, said its board met Wednesday and expressed full support for the plan.

The central scenario under discussion calls for Dongfeng and the French state to contribute between a third and half of the €3 billion Peugeot wants to raise, according to people familiar with the negotiations.

The Peugeot family, the group's largest shareholder with a 25.4% stake, would spend €80 million to €120 million to buy some of the newly issued shares and avoid being diluted too much, these people said.

The company would make an additional public rights issue to make up the required amount, they said.

Upon completion of the transaction, Dongfeng, the state and the family would hold roughly equal stakes, they said.

At stake is how to provide the loss-making company with the financial means to pursue the heavy industrial, R&D and commercial investment it needs to ensure its future and bolster its presence in overseas markets.

Officials at Dongfeng couldn't be reached immediately for comment.