>>> Tim attractive to Global Telecom in the event of a sale

Tim attractive to Global Telecom in the event of a sale 

Global Telecom would be interested in acquiring Tim Participacoes (Bovespa: TIMP3), Brazil’s second-largest mobile telephone service provider, in the event controlling shareholder Telecom Italia seeks to sell, Folha de S Paulo reported Saturday.

Company founder Naguib Sawiris said he would make a proposal if Tim were put up for sale, according to the Portuguese-language daily's interview with the Egyptian billionaire.

Sawiris said he has not made an offer for Rio de Janeiro-based Tim, which also owns a long-distance wire-line telephone company in Brazil, according to the report. Global Telecom was formed from the merger of Orascom with the Russian Vimpelcom. Orascom Telecom Holding was renamed Global Telecom Holding last September.

Tim could fetch up to EUR 20bn (USD 27bn) in a sale, according to analysts cited in the report. With a personal fortune of USD 2.5bn, Sawiris is the leader of a group of investors ready to buy the Brazilian company, the newspaper reported. The other investors weren’t identified in the report, which took up most of the editorial space on two pages in the second business section of Saturday's edition.

Sawiris told Brazilian telecommunications Minister Paulo Bernardo that he wanted to buy Tim when they met at the end of 2013, according to the interview.

Telefonica, the Spanish listed company, is the owner of Vivo, Brazil’s largest mobile telephone operator, and is an indirect shareholder in Tim, Folha said. Telefonica is an investor in Telecom Italia through a company called Telco, according to the report.

Telecom Italia will form a special committee to evaluate acquisition offers for Tim, according to a newswire report published two weeks ago. The Reuters report cited Telecom Italia Director Ben Ammar, who said there were no offers for Tim at that time.


Source Folha de Sao Paulo

>>> Brokers Upgrades & Downgrades

>>> Up
*BRITISH LAND RAISED TO BUY VS NEUTRAL AT GOLDMAN
*CA IMMOBILIEN RAISED TO BUY VS NEUTRAL AT GOLDMAN
*EUROCOMMERCIAL RAISED TO BUY VS NEUTRAL AT GOLDMAN
*INTU PROPERTIES RAISED TO NEUTRAL VS SELL AT GOLDMAN
*LAND SECURITIES RAISED TO BUY VS NEUTRAL AT GOLDMAN
*LANXESS RAISED TO BUY VS NEUTRAL AT BOFAML
*LUXOTTICA RAISED TO BUY VS NEUTRAL AT BOFAML
*OCI RAISED TO BUY VS HOLD AT DEUTSCHE BANK
*PEARSON RAISED TO BUY VS NEUTRAL AT CITI
*PSP SWISS RAISED TO NEUTRAL VS SELL AT GOLDMAN
*SES RAISED TO OVERWEIGHT VS UNDERWEIGHT AT BARCLAYS
*SHAFTESBURY RAISED TO NEUTRAL VS SELL AT GOLDMAN
*SMITH & NEPHEW RAISED TO BUY VS NEUTRAL AT UBS

>>> Down
*ASTRESMEDIA CUT TO UNDERWEIGHT VS EQUALWEIGHT AT BARCLAYS
*BANK OF IRELAND CUT TO NEUTRAL VS BUY AT NOMURA
*BENI STABILI CUT TO SELL VS NEUTRAL AT GOLDMAN
*CITYCON CUT TO NEUTRAL VS BUY AT GOLDMAN
*COFINIMMO CUT TO SELL VS NEUTRAL AT GOLDMAN
*CONWERT CUT TO SELL VS NEUTRAL AT GOLDMAN
*ERSTE GROUP CUT TO NEUTRAL VS BUY AT UBS
*GAGFAH CUT TO NEUTRAL VS BUY AT GOLDMAN
*GECINA CUT TO SELL VS NEUTRAL AT GOLDMAN
*GLOBALTRANS CUT TO NEUTRAL VS BUY AT UBS
*IG GROUP HOLDINGS CUT TO NEUTRAL VS BUY AT GOLDMAN
*INFORMA CUT TO EQUALWEIGHT VS OVERWEIGHT AT BARCLAYS
*ITV CUT TO SELL VS NEUTRAL AT CITI
*KLEPIERRE CUT TO NEUTRAL VS BUY AT GOLDMAN
*MERCK KGAA CUT TO SELL VS HOLD AT SOCGEN
*PEARSON CUT TO NEUTRAL VS OVERWEIGHT AT JPMORGAN
*PROSIEBENSAT.1 CUT TO SELL VS NEUTRAL AT CITI
*RTL CUT TO NEUTRAL VS BUY AT CITI
*SCHIBSTED CUT TO NEUTRAL VS BUY AT CITI
*TELE2 CUT TO HOLD AT JEFFERIES
*VASTNED CUT TO SELL VS NEUTRAL AT GOLDMAN

>>> PT Change
*SAFILO PT RAISED 6% TO EU17.5 AT BOFAML; KEPT AT NEUTRAL

>>> Initiation
*ROYAL MAIL RATED NEW SELL AT CITI, PT 531P
*SCHIBSTED RATED NEW UNDERWEIGHT AT BARCLAYS; PT NOK350
*SHIRE RESUMED OVERWEIGHT AT MORGAN STANLEY, PT 3,370P

>>> Call
>> Stock
*BIG YELLOW ADDED TO CONVICTION BUY LIST AT GOLDMAN
>> Sector
*CONSTRUCTION MATERIALS RAISED TO OVERWEIGHT AT JPMORGAN

>>> Vodafone : AT&T confirms no plans to make an offer for Vodafone

Vodafone Group plc AT&T confirms no plans to make an offer for Vodafone
Statement:AT&T Inc. ("AT&T") notes the recent speculation regarding a potential transaction involving Vodafone Group plc ("Vodafone") and recent movement in the share price of Vodafone.

At the request of the UK Takeover Panel, AT&T confirms that it does not intend to make an offer for Vodafone. Accordingly, AT&T is bound by the restrictions under Rule 2.8 of the UK Takeover Code (the "Code").

For the purposes of Rule 2.8 of the Code, AT&T reserves the right to announce or participate in an offer or possible offer for Vodafone and/or to take any other action which would otherwise be restricted under Rule 2.8 of the Code within 6 months after the date of this announcement in the circumstances described in note 2 to Rule 2.8 of the Code.

FT : Emerging market oil groups out of favour

National oil companies from emerging economies have fallen out of favour on stock markets over the past year relative to western energy groups, as the North American shale revolution continues to attract investors.
Companies such as PetroChina, Petrobras of Brazil and Gazprom and Rosneft of Russia all suffered significant falls in their share prices in 2013, while Chevron and ExxonMobil of the US, and Total, BP and Royal Dutch Shell from Europe all rose.

The combined market value of state-controlled national oil companies’ shares fell 15 per cent, while the value of the large western groups rose 9 per cent, according to IHS, the analysis group.
The figures mark a reversal from the prevailing trends of the 2000s, when it seemed that national oil companies, with greater access to resources and government support, would inevitably eclipse the western groups.
Daniel Trapp of IHS said: “With the national oil companies, investors are asking where their priorities lie. Are they with shareholders, or will they follow the government’s priorities?”
The boom in US shale oil and gas production has created an alternative for investors concerned about the risk in state-controlled companies.
Among the best-performing companies last year, according to an analysis published by IHS on Monday, were some of the largest producers of US shale oil: EOG Resources, Continental Resources and Pioneer Natural Resources.
The markets have also rewarded companies such as Occidental Petroleum and Hess that are moving to cut back their global exposure and focus on North American production.
The largest western oil groups were slow to develop shale production and have been paying the price, with Shell and others forced to write down the value of their assets.
However, they have been acquiring skills that should leave them better placed to develop shale resources than their rivals from emerging economies, which are generally even further behind.
Concerns about increased supplies of US shale oil putting downward pressure on prices have been a particular issue for Petrobras, which is facing the challenge of developing Brazil’s difficult deep water oilfields, and concerns about political interference. Its shares fell 24 per cent last year.
Other companies that thrived in 2013 included the large oil services groups that have the skills and technology needed for shale oil and gas production, including Schlumberger, Halliburton and Baker Hughes.

FT : Peugeot’s China tie-up with Dongfeng targets 1m cars a year

PSA Peugeot Citroën is aiming to produce 1m cars a year in China for Asian markets with local automaker Dongfeng, as part of their industrial partnership, according to people briefed on the talks.
The two groups have been hammering out an alliance since last year. Under current proposals, Dongfeng and the French state will take a 14 per cent stake in Peugeot as part of an effort to raise €3bn in capital.

The struggling French automaker, hit by the worst European car market for two decades and bleeding cash, will use the money to invest in new models and shore up its balance sheet. It is relying on the partnership to boost Asian sales.
The joint venture will produce cars under Peugeot, Citroën and Fengshen brands, using common platforms and supply chains, and sharing research and development costs.
Peugeot and Dongfeng plan to increase car sales into China and southeast Asian markets to 1m cars a year in the next three to four years. Total PSA group sales in 2012 were 3m units.
One area of potential R&D collaboration will be over the Hybrid Air, a complex technology to reduce fuel consumption.
Peugeot also hopes to receive a stream of revenue from sharing its technology with the joint venture.
Dongfeng, Peugeot and the French government are still in talks over the exact nature of the financial and industrial agreement.
Peugeot said last week the talks were in their final stages, confirmed the €3bn capital increase, and said it would give more clarity when it released annual results on February 19.
The price of the share issue, thought to be between €7 and €8 a share, is still unknown. Any deal would still need shareholder approval.
Shareholders will be given warrants, allowing the option to buy shares at the same price as the share issue.
A reserve capital increase, giving stakes to Dongfeng and the government, will be followed by a broader capital increase, to which Dongfeng and the government will also subscribe.
Under the current form of the agreement, the Peugeot family will lose control of the company it created more than 100 years ago, moving from its 25 per cent stake and 38 per cent voting right to just a 14 per cent stake.
The family is set to lose its chairmanship of the board under these circumstances, to be replaced by an independent figure.
The make-up of the board has not been decided, but under current proposals each of the three main shareholders will get an equal number of board seats.
A majority of independent directors will be appointed for balance.
This might allay some investor fears that having three very different powerful owners – Beijing, the family and the Elysée Palace – will make decision making difficult. The French press have dubbed the company the “lion with three heads”.
Peugeot is also in talks with Santander over a deal to sell part of its financing arm, currently reliant on €7bn in French state guarantees – all in a bid to leave Carlos Tavares a clean slate when he takes over as chief executive this year.
In an existing partnership, Dongfeng and Peugeot operate three assembly plants together in China. The Wuhan-based company also has joint ventures with Honda, Nissan, and Renault.

WSJ AT&T Sounds Out EU on Impact of NSA Role

AT&T Sounds Out EU on Impact of NSA Role

AT&T Inc. T -1.12% Chief Executive Randall Stephenson met with the European Union's top telecom regulator in Davos last week, as the giant U.S. carrier continues to look into a possible acquisition in the region.

At a dinner Tuesday night during the annual gathering of top executives and political figures in the Swiss resort town, Mr. Stephenson asked Commissioner Neelie Kroes how revelations of data-gathering programs conducted by the National Security Agency would affect the ability of companies like AT&T to do business in Europe, people familiar with the conversation said.

There was no discussion of specific deals or targets for AT&T, the people said, although Mr. Stephenson did generally reiterate his interest in broadening investment and operations in Europe.

Ms. Kroes replied that U.S. companies, like AT&T, face a trust problem in Europe as a result of the spying disclosures and it is in the interests of all the parties to get that resolved. The scandal is likely to be a live issue as the continent gears up for EU-wide European Parliament elections in May.

Sky News reported the meeting earlier.

Mr. Stephenson and other AT&T executives have signaled an interest in buying a wireless operator in Europe, highlighting the potential to expand the continent's use of mobile data and shift pricing models to capture more revenue as use rises. That's essentially what AT&T and rival Verizon Wireless have done in the U.S.

In conversations with analysts, AT&T has given the impression that Vodafone Group VOD.LN -0.60% PLC would be a good fit after the U.K.-based company completes its sale of its 45% of Verizon Wireless to Verizon Communications Inc. VZ -0.48% on Feb. 21. Hurdles, however, include the need to get clearance from regulators, a process that has been complicated by revelations the U.S. spied on European leaders and collected large amounts of data on phone and Internet communications.

German and other European officials have previously said that any attempt by AT&T to acquire a major wireless operator would face intense scrutiny given the company's involvement with such programs, which in many cases relied on data turned over by phone companies.

Mr. Stephenson has expressed his interest in Europe in calls with Wall Street analysts but has also said there are other ways to get exposure to the continent than an outright acquisition. AT&T has been studying its options in recent months.

Bankers have been courting the U.S. company, but no moves are expected to be made until after Vodafone completes its $130 billion sale of its Verizon Wireless stake.

One consideration for AT&T is that the company has grown too large to get significant acquisitions past antitrust authorities in the U.S. The company grew rapidly via a string of deals over the past decade and is now the country's second-largest wireless operator behind Verizon.

AT&T is among the U.S. phone companies that provide calling data to the NSA to feed the far-reaching surveillance programs disclosed by former NSA contractor Edward Snowden, The Wall Street Journal reported last June.

Among the revelations in Mr. Snowden's disclosures was how the NSA was able to collect data about people in other countries when that data passes through the U.S. It was later revealed that German Chancellor Angela Merkel and other world leaders were monitored by the NSA.

President Barack Obama pledged earlier this month to end the government's mass collection of American phone data and laid out plans to adopt new privacy protections for non-U.S. citizens, including ending government spying on heads of state of close American allies.

Ms. Kroes indicated last week that those steps were welcome but that Europeans are eager to see follow through.

>>> Asian Update

Asian Market Update: Japan merchandise trade hits record deficit despite weaker Yen; China markets still under pressure on manufacturing, credit worries

***Economic Data*** - (JP) JAPAN DEC MERCHANDISE TRADE BALANCE: -¥1.30T V -¥1.24TE (record 18 straight month of deficits); ADJUSTED TRADE BALANCE: -¥1.15T V -¥1.34TE; 2013 Japan annual trade gap of ¥11.47T (record deficit) vs ¥6.94T y/y - (NZ) NEW ZEALAND DEC PERFORMANCE SERVICES INDEX: 57.5 V 55.8 PRIOR - (KR) SOUTH KOREA JAN CONSUMER CONFIDENCE: 109 V 107 PRIOR (3-year high) - (JP) BANK OF JAPAN (BOJ) RELEASES MINUTES FROM DEC 19-20 MEETING: Japan economy recovering moderately; Japan exports lacks momentum

***Observations/Insights*** - Asian equity markets are in the red across the board, tracking outsized losses in US indices on Friday. Nikkei225 led the decliners again in the morning session, falling well over 2% amid further risk-off Yen-strength. Separately, Japan merchandise trade deficit came in above a trillion yen for December, while calendar 2013 deficit was record high due to mounting energy costs. BOJ Gov Kuroda speaking at Davos remained resolute in terms of Japan achieving the central bank's 2% inflation target in a 2-year time frame. - Hong Kong's Hang Seng is down just over 2% and Shanghai Composite fell over 1% in the morning session before recovering some ground going into the afternoon break. Analysts continued to point at the surprise contraction in the HSBC manufacturing flash PMI that got the selloff started last week. Some additional focus also fell on troubling press reports pertaining to the China credit mechanism - a Forbes feature noted PBoC has ordered commercial banks to halt cash transfers during the holiday week and a separate report forecasted ICBC's "China Credit Trust" would not be able to repay CNY3.0B due on loans this Friday, with the govt determined to reign in risky lending. Later in the day, PBoC's Shanghai branch was reported to strengthen liquidity management and step up monitoring of risks in local govt financing vehicles (LGFV) and property loans.

***Fixed Income/Commodities/Currencies*** - (JP) BOJ offers to buy ¥400B in 5-10yr JGB and ¥20B in inflation index bonds - (CN) Daily Shibor fixings: O/N: 4.5340% v 4.4000% prior (5th consecutive rise); 1-week: 4.6890% v 4.7170% prior - (KR) South Korea sells 20-yr govt bonds, avg yield 3.805%

- Despite the persistent weakness in regional equity indices, initial risk-off sentiment in the currency markets has reversed by the afternoon. USD/JPY opened around 101.80 before rising above 102.50, while AUD/JPY has erased an initial 30pip drop to 88.50 to rise above 89.50. AUD/USD is also up about 50pips from session lows above 0.8730. EUR/USD and GBP/USD traded in narrow 20pips ranges above 1.3670 and 1.6480.

***Speakers/Political/In the Papers*** - (CN) Follow-up reports indicating ICBC's "China Credit Trust" may not be able to repay CNY3.0B due on loans this Friday, leading to un "unprecedented default" in China's shadow banking system - financial press - (CN) PBoC Shanghai branch to strengthen liquidity management - financial press - (CN) China National Development and Reform Commission (NDRC) may control pork prices at appropriate time - Chinese press - (CN) China's port of Tianjin to become the 4th city to impose a formal quota on the number of new vehicle license plates; New policy taking effect this month - Shanghai Daily - (CN) According to Deovolente Realty Co, Shanghai pre-owned home sales for 2013 rose 58.8% y/y to 293K units, 8-year high - Shanghai Daily - (CN) Shanghai Stats Bureau: Shanghai 2013 GDP grew 7.7% vs 7.5% in 2012, in line with national average - Shanghai Daily - (JP) BOJ's Kuroda: optimistic about economic growth and inflation outlook; Japan should reach its 2% inflation target within a two year time frame - Davos comments - (JP) Japan coast guard sights three China vessels near disputed Senkaku island territory - Japanese press - (JP) A panel under Japan's Ministry of Economy, Trade and Industry to submit its recommendations today aimed at bringing Japan's accounting standards closer to those of the U.S. and Europe - Nikkei - (JP) Japan PM Abe cabinet approval rating rises to 56.6% vs 55.9% prior in Dec - Kyodo News - (JP) Japan, US agree to continue close work for early end to TPP talks - financial press - (KR) South Korea Ministry of Oceans and Fisheries: Container cargo handling at South Korean seaports in 2013 rose 0.8% y/y to 1.35B tons - Korean press - (KR) South Korea Ministry of Land, Infrastructure, and Transports: Nationwide land prices rose 1.1% in 2013; Number of transactions rose 9.6% - Korean press - (KR) South Korea Financial Service Commission (FSC): South Korea to increase market monitoring over volatility in fx market - (NZ) Westpac: RBNZ has little to gain from a rate hike this week but much to lose - NZ press

**Europe/MENA** - (EU) IMF's Lagarde: Reiterates Eurozone inflation is "way below target"; Deflation poses a risk for EMU - press citing comments from Davos - (ES) Spain Econ Min De Guindos: Govt looking to increase corporate tax revenue by doing away with some of companies' exemptions - Spanish press - (EG) Egyptian police fired tear gas and clashed with protesters in Cairo on Saturday, leading to 49 deaths - press - (UR) Ukraine protests appear to be spreading throughout the country - financial press

***Equities*** Market Snapshot (as of 04:30 GMT): - Nikkei225 -2.3%, S&P/ASX closed, Kospi -1.5%, Shanghai Composite -0.7%, Hang Seng -2.1%, Mar S&P500 +0.2% at 1,786, Apr gold +0.5% at $1,271, Mar crude oil flat at $96.66/brl

US markets: - GOOG: Said to acquire artificial intelligence company DeepMind for about $400M - financial press

Notable movers by sector: - Consumer Discretionary: Anhui Jianghuai Automobile 600418.CN +0.4% (FY13 guidance); Sichuan Changhong Electric 600839.CN +2.3% (FY13 guidance) - Financials: China Pacific Insurance Group 2601.HK -3.2% (FY13 guidance) - Materials: Liuzhou Iron & Steel 601003.CN +0.5% (prelim FY13 results); Chu Kong Petroleum & Natural Gas Steel Pipe Holdings 1938.HK -6.2% (profit warning) - Energy: China Coal Energy 1898.HK -3.5%, China Shenhua Energy 1088.HK -3.1%, Yanzhou Coal 1171.HK -3.4% (China Coal Energy issues profit warning) - Industrials: ANA Holdings 9202.JP -1.8% (press report on 9M results); Fuji Heavy Industries 7270.JP -2.0% (press report on 9M results); Isuzu Motors 7202.JP -2.9% (press report on 9M results); Hino Motors 7205.JP -4.4% (press report on 9M results)

>>> BSky B : Murdoch reportedly may again propose bid for British Sky Broadcasti

BSky B : Murdoch reportedly may again propose bid for British Sky Broadcasting - UK press

**Reminder: On Jun 12 - BSY.UK: There is speculation that News Corp could bid for the company in the next few years - UK Press 
- News Corp's stake in BSkyB is equal to about 39%. 
- In 2010, News Corp made a 700p/share bid for the company (last: 778p), but the offer was withdrawn due to regulatory issues.

>>> US investors said to be in plans to breakup British supermarkets - financial

US investors said to be in plans to breakup British supermarkets - financial press- US activist investors could be in plans to push Tesco, Sainsbury, Morrisons to spinoff property holdings and make them public. 
**Note: On Jan 19 - MRW.UK: Sandell Asset Management acquire stake in the company - UK press - Though not formally disclosed, Sandell's stake is said to be under 3%. - Morrisons is currently under pressure from Elliott Management to spin-out the majority of property assets into another company; unlike competitors Tesco and Sainsbury, Morrisons owns 90% of its stores. - Morrisons is set to provide an update for shareholders in March