(BN) Texas Industries Said to Reach Deal for Sale to Martin Marietta

Texas Industries Said to Reach Deal for Sale to Martin Marietta
2014-01-27 21:02:26.411 GMT


By Aaron Kirchfeld, David Welch and Thomas Black
     Jan. 27 (Bloomberg) -- Texas Industries Inc. has agreed to
a sale to Martin Marietta Materials Inc., the U.S.’s second-
largest producer of sand, gravel and crushed rock used in
construction, a person with knowledge of the matter said.
     A merger of the two companies could be announced as early
as today, said the person, who asked not to be named because the
information is private. The deal is likely to be an all-stock
transaction, one person familiar with the matter said last week.
     Texas Industries, which is based in Dallas, has a market
value of about $2 billion and Raleigh, North Carolina-based
Martin Marietta is currently worth almost $5 billion. Officials
at both companies didn’t immediately reply to requests for
comment by telephone and e-mail.
     Texas Industries’ strength in California and its home state
would give Martin Marietta an entry into the cement market amid
a U.S. construction rebound. The crushed stone, gravel and sand
that Martin Marietta already produces, known as aggregates, are
mixed with cement to produce concrete. In 2013, builders began
work on 923,400 homes, an increase of 18 percent from the prior
year and the most since 2007.

For Related News and Information:
Texas Industries Said to Explore Sale Amid Building Rebound
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Manufacturing Growth to Help Propel U.S. Expansion: Economy
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Sales of New Homes in U.S. Rebound From More Than One-Year Low
NSN NSN MXAIM10YHQ0X <GO>
U.S. housing and mortgage data: HSST <GO>
Economic statistics: ECST <GO>
Top Stories: TOP <GO>

--Editors: Mohammed Hadi, Elizabeth Wollman

To contact the reporters on this story:
Aaron Kirchfeld in London at +44-20-3525-8830 or
akirchfeld@bloomberg.net;
David Welch in New York at +1-212-617-2788 or
dwelch12@bloomberg.net;
Thomas Black in Dallas at +1-214-954-9458 or
tblack@bloomberg.net

To contact the editors responsible for this story:
Aaron Kirchfeld at +44-20-3525-8830 or
akirchfeld@bloomberg.net;
Mohammed Hadi at +1-212-617-2914 or
mhadi1@bloomberg.net

>>> US Close : Dow-0,26% S&P-0,49% Nasdaq-1,08%

Closing Market Summary: Stocks Slump as Technology Weighs

The major averages followed last week's sharp losses with another shaky performance. The Dow Jones Industrial Average and S&P 500 posted respective declines of 0.3% and 0.5% while the Nasdaq (-1.1%) and Russell 2000 (-1.5%) underperformed.

Stocks displayed gains at the open but the early strength faded during the initial hour as the Nasdaq headed into the red. The other indices followed suit and the broad retreat continued until about 12:20 ET when stocks reversed and spent the afternoon in a steady climb. Moderate selling pressure returned during the final hour, knocking the indices off their afternoon highs.

Although there was no news responsible for the turn, the morning selling coincided with a strengthening yen while the session low in equities matched the high point for the Japanese currency. Once the yen began weakening again, a rally in equities ensued. Similarly, the selling observed during the last 30 minutes of action coincided with the yen gaining strength once again.

The Dow and S&P 500 held up relatively well compared to the tech-heavy Nasdaq. The index suffered after being hit with a one-two punch of selling interest as large cap tech names and biotechnology retreated. The tech sector (-1.0%) finished at the bottom of the leaderboard while the iShares Nasdaq Biotechnology ETF (IBB 238.60, -5.42) lost 2.2% and also pressured the health care sector (-0.8%).

Even though technology underperformed, its largest component, Apple (AAPL 550.50, +4.43) added 0.8% ahead of its after-hours earnings report.

Elsewhere among cyclical groups, the industrial sector (+0.2%) drew strength from Caterpillar (CAT 91.29, +5.12) after the Dow component reported above-consensus results and announced a $10 billion buyback program. Transports, however, did not take part in the rally. The bellwether complex lost 0.8% after plunging 4.1% on Friday.

On the countercyclical side, health care (-0.8%) lagged while consumer staples (-0.3%), telecom services (+0.1%), and utilities (+0.2%) outperformed.

The early selling fueled a scramble for downside protection, which sent the CBOE Volatility Index (VIX 17.51, -0.63) as high as 18.99%. However, the subsequent rebound invited many to lift their hedges. As a result, the near-term volatility measure ended lower by 3.5%.

Treasuries finished on their lows with the benchmark 10-yr yield up five basis points at 2.77%.

Participation was a bit above average as 764 million shares changed hands at the NYSE.

Today's economic data was limited to the December New Home Sales, which fell 7.0% to 414,000 from a downwardly revised 445,000 (from 464,000) while the consensus pegged the reading at 457,000. Total sales in 2013 increased 16.3% to 428,000 from 368,000 in 2012. That was the most new homes sold since 485,000 sales registered in 2008. Although that may seem like a lot, more than a million new homes were sold each year from 2003 to 2006.

We hypothesized that the strong sales performance in October and November was due to buyers rushing into the market to take advantage of relatively low interest rates in a rising interest rate environment. The large December decline adds evidence to this theory as the push forward in demand dried up and sales levels returned to where they were during the lackluster summer period. Another drop in January would deliver more credence to the contention that gains in October and November were not from sustainable demand growth.

Tomorrow, December Durable Orders will be released at 8:30 ET while the November Case-Shiller 20-city Index and January Consumer Confidence will cross the wires at 9:00 ET and 10:00 ET, respectively.
Nasdaq Composite -2.2% YTD
Russell 2000 -3.1% YTD
S&P 500 -3.6% YTD
Dow Jones Industrial Average -4.5% YTD

>>> Inter Parfums reports Q4 revenue of $105.5 mln vs. $107.1 mln CapIQ consensu

Inter Parfums reports Q4 revenue of $105.5 mln vs. $107.1 mln CapIQ consensus; Reaffirms FY13 EPS guidance & Reaffirms FY14 revenue and EPS guidance, which is below consensus 

Co reports that net sales increased 19% y/y to $105.5 mln, below the $107.1 mln consensus.

Guidance: Co also reaffirms FY13 EPS guidance of $1.23 vs. $1.27 CapIQ consensus. Co reaffirms guidance for FY14, which is below consensus. Sees EPS of $0.93-$0.98, below CapIQ consensus of $1.09, sees revenue of $495 mln vs $516.6 mln consensus.

>>> Rambus reports EPS in-line, revs in-line; guides FY14 revs above consensus

Rambus reports EPS in-line, revs in-line; guides FY14 revs above consensus

Reports Q4 (Dec) adj. earnings of $0.14 per share, in-line with the Capital IQ Consensus Estimate consensus of $0.14; revenues rose 27.9% year/year to $73.4 mln vs the $73.21 mln consensus, due to the new license agreements signed with SK Hynix, Micron Technology, ST Microelectronics and LSI Corporation during 2013.

Co issues upside guidance for FY14, sees FY14 customer licensing income and rev of $295-305 mln vs. $287.79 mln Capital IQ Consensus Estimate. Customer licensing income and revenue are not without risk and include expectations that the Company will sign new customers for patent as well as solutions licensing. The Company also expects to keep its non-GAAP operating expenses relatively flat, year over year.

FT : AT&T takes a breather from pursuing Vodafone

The raid by companies from the new world into the European telecommunications market was briefly checked on Monday when AT&T ruled itself out of the bidding for Vodafone.
The battle for the British operator could be far from over, however, with the six-month hiatus offering potential breathing space to allow European sector regulations – and the M&A-inflated Vodafone share price – to become more manageable. Shares in Vodafone fell almost 4 per cent on Monday.

The Americans, in the words of one investor, could well be back, and soon.
Indeed, shortly after the AT&T announcement, normal service resumed with the agreement of a €10bn deal by John Malone’s Liberty Global for Ziggo, the Dutch cable group.
This was the latest move by an overseas rival to buy into a European telecoms and media market expected to consolidate into fewer but bigger groups able to better compete in a world where the internet has eroded national and regional boundaries.
Hopes of consolidation in the market have boosted telecoms stocks, with the European sector index up more than a third in the past 12 months amid sometimes feverish speculation linking various businesses to larger, and more powerful, international groups.
To an extent, the investment case has hinged on companies in booming markets in the Americas and Asia using their relative strength to take advantage of low valuations in a fragmented European market hard hit by years of underinvestment and strict regulatory oversight.
The European telecoms sector trades on average between five and six times estimates for next year earnings, which is lower than the valuations given to their peers in the US. Few analysts expect a short-term turnround in moribund operational performance for the European operators.
Carlos Slim’s America Movil increased its stake in Telekom Austria this month to about 27 per cent, near the stake it still holds in KPN. This has prompted renewed talk of a full takeover of both groups. Hutchison Whampoa, which owns Three in Europe, has also been attempting to buy businesses in European markets. There is also talk in the market of interest from Japan’s SoftBank and China Mobile.
But an AT&T offer for Vodafone is still seen by many analysts as the most likely, even after the US group stepped back on Monday. Simon Weeden, an analyst at Citi, said AT&T was “still likely to consider an acquisition of Vodafone at some point in the future” given Vodafone’s complementary mobile strategy in an improving European market.
Takeover Panel rules forced the US group to rule itself out of bidding for six months, but that does not close the door on an agreed merger. Vittorio Colao, Vodafone’s chief executive, has been open to a US partnership in the past.
Six months is seen by some analysts as a useful hiatus for the US group in buying time to allow greater regulatory certainty in the telecoms market.
AT&T will want reassurance that any future investment in next-generation mobile networks will be matched with the right regulatory framework. In particular, AT&T has been critical of how wireless spectrum, which is needed to broadcast mobile services, is awarded and owned in Europe.
Mark Kelly of Olivetree Securities, which specialises in trading M&A situations, adds: “With their left hand they have taken some M&A premium out of the Vodafone rump share price, and with the right hand have sent a message to EU regulators regarding their desire to come and spend billions of dollars in the region without a new backdrop to spectrum auction processes.”
Any concerns around US spying through the National Security Agency may also die down, leading to fewer concerns about a US acquisition of a group with critical infrastructure across Europe.
However, six months could also be a long time to wait for Vodafone, a company with cash in the bank from the Verizon sale and a stated aim to make its own deals in the market.
Vodafone can carry on with an M&A strategy based on buying or partnering owners of fixed-line networks, without needing to look over the shoulder to see if there is an American pursuer. These assets could make Vodafone less attractive to AT&T, which is primarily interested in its mobile business.
The managements of AT&T and Vodafone – along with the sector regulators – will next meet at the annual Mobile World Congress conference in Barcelona in February, which will spark the next round of speculation about potential tie-ups. Even so, it is likely to be a long six months before the buyers of Vodafone stock return in the hopes of a bid.

>>> Standard Chartered could be takeover target for ANZ, ICBC, C

Standard Chartered could be takeover target for ANZ, ICBC, CCB, MUFJ and SMFG

Standard Chartered could be a takeover target for a number of Asian lenders, the online Oriental Daily reported. The Chinese-language news item, citing a Credit Suisse research report, said about five Asian lenders could be potential buyers for Standard Chartered. They are Australia-based ANZ, China-based ICBC and CCB, as well as Japan-based MUFJ and SMFG.

Peter Sands, Standard Chartered's chief executive, dismissed takeover chatter about the listed UK-based bank as “speculative rubbish”, according to a previous report.
Oriental Daily

Cairn Energy Didn’t Pay Tax on $3.86b Capital Gains: PTI

+------------------------------------------------------------------------------+

MORE: Cairn Energy Didn’t Pay Tax on $3.86b Capital Gains: PTI 2014-01-27 18:25:56.185 GMT

By Dick Schumacher Jan. 27 (Bloomberg) -- (Adds bullet point with Cairn Energy comment.) Cairn Energy Plc didn’t pay capital gains on 245.03 billion rupees ($3.86 billion) of capital gains, the Press Trust of India reported today, citing an Indian Income Tax Department document. PTI also said: * Gain occurred when Cairn Energy transfered its Indian business from subsidiaries incorporated in Jersey, the Channel Islands, to newly incorporated Cairn India in 2006. * Indian Income Tax Department hasn’t currently issued a tax bill to Cairn Energy for the gain * Tax Department has ordered Cairn India not to allow the transfer of Cairn Energy’s stake in the company * PTI cites a seven-page order from Indian Income Tax Department dated Jan. 22 * Cairn Energy is “is cooperating to provide the necessary documentation and information as required by the Indian authorities and will aim to update the market in due course,” Cairn said in an e-mailed comment today. NOTE: Cairn Energy Drops to Lowest in Decade on Indian Tax Probe

Story Link:NSN N02MKQ6TTDT2<GO>

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

--With assistance from Eduard Gismatullin in London.

To contact the reporter on this story: Dick Schumacher in London at +44-20-7673-2438 or dschumacher@bloomberg.net

To contact the editor responsible for this story: Dick Schumacher at +44-20-7673-2438 or dschumacher@bloomberg.net

>>> US Today's most active stocks

Today's top 20 volume
  • Technology: FB (36.99 mln -2.46%), CSCO (24.62 mln -0.99%), VOD (15.66 mln -2.63%), BBRY (15.44 mln -2.61%), NOK (14.73 mln +1.31%), MSFT (14.08 mln -1.43%), AMD (13.84 mln -2.74%), MU (12.78 mln +0.44%), S (12.42 mln +5.24%), INTC (11.26 mln +0.24%)
  • Services: SIRI (22.12 mln -0.69%)
  • Industrial Goods: GE (24.39 mln +0.56%), CAT (11.71 mln +4.55%)
  • Healthcare: ARIA (46.27 mln -7.45%), MRK (15.9 mln +2.57%), CTIC (11.07 mln -14.75%)
  • Financial: BAC (48.29 mln -1.09%), C (15.2 mln -0.61%)
  • Consumer Goods: F (16.4 mln -1.14%), GM (12 mln -0.76%)
Today's top relative volume (current volume to 3-month average daily volume)
  • Technology: GAME (14.1x +12.57%), VRNG (6.42x +1.66%), NTE (6.35x -14.46%), VOD (5.44x -2.63%)
  • Services: MM (17.14x +8.94%), RGS (9.32x -9.17%), LBTYA (6.5x -2.74%), RCL (5.81x +1.34%), SIG (5.65x +5.91%), WWE (5.2x +0.5%)
  • Industrial Goods: CAT (7.18x +4.55%), BRSS (5.79x -0.55%), RYN (5.29x +7.75%)
  • Healthcare: SIRO (8.28x +2.9%), CTIC (7.22x -14.75%), BDSI (6.15x -12.58%), EBS (5.68x -0.83%), ARIA (4.89x -7.45%)
  • Financial: WSBF (8.84x -0.95%), BBVA (6.38x -0.71%)

>>> Ariad Pharmaceuticals TheStreet.com's Feuerstein: Investors tell me they do


Ariad Pharmaceuticals TheStreet.com's Feuerstein: Investors tell me they do not believe big pharma is interested in buying Ariad
- "A takeover of Ariad by any Big Pharma would be career suicide for the business development guy proposing such a deal," this investor told me. He's not allowed to be quoted by name, per his fund's compliance rules.

>>> Caterpillar on earnings call - CAT +4.2% - stock coming back from highs

Caterpillar on earnings call

In sales, more than half the quarter over quarter sales decline was in resource industries which is principally mining. Resource industries sales were down 48% from Q4 of 2012, and that substantial decline was a result of both lower demand from mining customers and from changes in dealer inventory.

While resource industry sales in Q4 were well below Q4 of 2012, they were about the same as the previous quarter, and that was Q3 of 2013.

Sales in each of the past two quarters have been roughly 3 bln for resource industries... it's worth noting at this point that the 3 billion a quarter that we have seen for the past couple of quarters for resource industries is about where the co is expecting to average in the outlook for 2014. Probably a little below 3 billion a quarter in the first half and a little better in the second half.