(BN) *GE BID FOR ALSTOM `NOT SUFFICIENT,' `NOT ACCEPTABLE': HOLLANDE

and as anticipated...here we go
BFW 05/06 06:50 *GE BID FOR ALSTOM ‘NOT SUFFICIENT,’ ‘NOT ACCEPTABLE’: HOLLANDE
 BN 05/06 06:50 *HOLLANDE DECLINES TO COMMIT STATE FUNDS TO ALSTOM
 BN 05/06 06:47 *HOLLANDE SAYS HE SHOULD BE JUDGED AT THE END OF HIS MANDATE
*GE BID FOR ALSTOM `NOT SUFFICIENT,' `NOT ACCEPTABLE': HOLLANDE
2014-05-06 06:49:41.514 GMT

  --VIDYA ROOT

-0- May/06/2014 06:49 GMT

(GS) Strategy Matters - Where has all the value gone?


*Where has all the value gone?*
We recently raised our long-term price targets for the market, expecting
a lower ERP and better growth to boost stock prices. However, we often hear that investors struggle to find value at the stock level given that so much that was value has risen sharply in the last year or two. In early 2013, 21% of stocks in the STOXX Europe traded below 10x 12m forward P/E; now just over 7% do. We find that dispersion of valuation between stocks has narrowed, mirroring a similar narrowing in dispersion in European bond markets.

(BFW) Balfour Beatty CEO Quits; Co. Sees Significantly Lower FY Pretax

stock is indicated north of 10% lower
 BN 05/06 06:05 *BALFOUR BEATTY TO BEGIN SEARCH FOR SUCCESSOR TO MCNAUGHTON
 BN 05/06 06:04 *BALFOUR BEATTY: STEVE MARSHALL WILL TAKE OVER AS EXEC CHAIRMAN
 BN 05/06 06:04 *BALFOUR BEATTY SAYS ANDREW MCNAUGHTON HAS STEPPED DOWN AS  CEO
 BN 05/06 06:03 *BALFOUR BEATTY BBY DIRECTORATE CHANGE
Balfour Beatty CEO Quits; Co. Sees Significantly Lower FY Pretax
2014-05-06 06:09:28.435 GMT


By Brian Lysaght
     May 6 (Bloomberg) -- Balfour says expects a GBP30m
shortfall in UK construction business in 2014.
  * Group pre-tax profits for 2014 are expected to be
    significantly lower than previous expectations, in the range
 of GBP145m-GBP160m
** NOTE: FY pretax avg est. GBP195m: Bloomberg data
  * Andrew  McNaughton has  stepped  down as  Chief Executive
    with immediate effect
  * Steve Marshall, will take over as Executive Chairman until a
    successor is appointed.
  * A strategic review has led the Group to evaluate options for
    the  possible  sale of Parsons Brinckerhoff, conditional on
    providing attractive value.


Link to Statement:{NSN N552623HBS3S <GO>}
Link to Company News:{BBY LN <Equity> CN <GO>}

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

To contact the editor responsible for this story:
Brian Lysaght at +44-20-7330-7908 or
blysaght@bloomberg.net

FT : Pfizer faces trickier takeover rules

Pfizer faces trickier takeover rules

In its pursuit of its quarry, Pfizer will have to negotiate UK takeover rules that have become trickier to navigate since the start of the decade.
The political controversy over Kraft’s takeover of Cadbury, the confectioner, in 2010, and a subsequent speech by the UK company’s former chairman Sir Roger Carr, led to revisions of the Takeover Code in 2011 to strengthen the position of target companies and force bidders to put more information into the public domain.

Among the most significant changes to the rules, which are administered by the Takeover Panel, was a tight timeframe aimed at preventing bidders from stalking companies for lengthy periods of time without tabling a formal offer.
Now Pfizer faces a May 26 deadline to “put up or shut up” as to whether it will make a formal offer for AstraZeneca – unless the target’s board requests an extension. If it fails to put a formal bid on the table, Pfizer will have to wait for six months before returning.
In addition, bidders must now publish more information on what they intend to do about jobs and major assets such as factories and – in AstraZeneca’s case – research facilities. Target companies’ employee representatives have a greater ability to make their views on the deal known.
Break fees, which the target agrees to pay the bidder if a deal is not completed, are now banned in the UK – in contrast with the US.
One senior corporate lawyer said the UK regime had become more “friendly” to target companies, but that AstraZeneca might still come under pressure not to insist on the initial “put up or shut up” deadline.
“If there is a body of shareholder support to engage in dialogue with Pfizer, AstraZeneca will be under pressure to go to the Panel and say we would be content to extend by another four weeks – or whatever the period may be,” he said.
The current obstacles Pfizer faces are relatively modest when compared with suggestions from the Labour leader Ed Miliband for future reform.
Mr Miliband has written to prime minister David Cameron calling for a stronger “public interest test” to apply to takeovers, taking into account strategic elements of the UK’s science base.

>>> European RPe-Mkt Indications - From the street

SOLVAY - EBITDA a 9% beat, 3% divisional beat is strong, guidance solid...+3%
POSTNL - Revs in line, op profit EUR 77m v 70m MLe, outlook at top end..+2-3%
ZODIAC - +ve read from BEAV strategic review, potential M&A in space......+2%
COUNTRYWIDE - Strong momentum continuing, cash generation positive........+2%
SYMRISE - 10% EPS beat on better margin, sales in line, solid.............+2%
SNAM - Look ahead of cons, net income EUR 292m vs cons 273m...............+2%
EUROFINS - Org growth > 8% in Q1, rev +13% YoY, optimistic for FY.......+1-2%
LAFARGE - Q1 EBITDA broadly in line, confirms FY, org growth strong.....+1-2%
HOCHTIEF - LEI AU +1.7% post figs, new orders +10%, capex -34%, reit FY...+1%
DUFRY - Q1 EBIT 35.1m v 35.6m est, sales slightly light, solid outlook....+1%
RENTOKIL - We UPGRADE to BUY, PO of 144p..................................+1%
LUFTHANSA - EBIT EUR -245m v -272m est, passenger yields worse, reit FY...+1%
JUST EAT - Trading slightly ahead of expectaions, on iPad app and weather.+1%
BMW - PBT ahead on China, auto EBIT margin slightly light.................+1%
AXEL SPRINGER - Q1 Sales, EBITDA small beat, buys Yad2 for EUR 165m.......+1%
SCHNEIDER - To announce vast restructuring of French ops, Force Ouvriere..+1%
UBS - 1% bea tv cons, 3% miss on rev offset by costs, IB revs lower.....+0.5%
STATOIL - Considering selling JV in Eagle Ford basin for > $4bn.........+0.5%
DSM - EBITDA ex-items a 3% miss BUT reits 2014 outlook, will see relief.+0.5%
REXAM - Completes sale of of pharmaceutical devices for $805m, expected...u/c
LINDE - EBITDA at EUR 927m bang in line with consensus....................u/c
SALAMANDER - Reits production guidance, nothing much in IMS...............u/c
TDC - Broadly in line, revs 1% light, EBITDA 2% ahead, guidance unch....-0.5%
EVONIK - Q1 EBITDA 463m v 475m cons but reiterate FY targets..............-1%
GLENCORE - Copper production and thermal coal in line, zinc small.light...-1%
ADIDAS - Net a 7% miss, maintains FY tgts, DJ say to sell Rockport........-1%
NEXANS - Sales 2% below cons due to higher FX, organic growth in line.....-1%
AIXTRON - -ve read from VECO US results, -7.7% after mkt..................-1%
ABERDEEN - Rev -2% YoY, margin slightly weak div in line, disappointing.-1-2%
PFEIFFER VAC - Q1 Result Broadly In Line With exp, op profit -8.2~% YoY.-1-2%
FRES MED - 6% EPS miss on poor margins, rev a small miss, maintains FY..-1-2%
GEA - Sales in line, adj EBIT 1-2% below on margin, reit guidance.........-2%
BARCLAYS - Costs better, IB revs v poor (FICC weakness), capital okay.....-2%
HISCOX - Q1 in line, gross premiums a little light, outlook okay........-1-2%
FRESENIUS - 2% top line but 4.5% beat at EPS, 5% miss at Kabi the -ve...-2-3%
ALSTOM - French gov asking for improvements to GE's $17bn bid.............-3%
BALFOUR BEATTY - 3rd WARNING. Fy guidance now implies 19% downgrades..-12-15%

FT : Reject a deal that’s based on financial manipulation

Reject a deal that’s based on financial manipulation

Sir, In 59 years of my letters being published by you, I have regularly and repeatedly railed against the loss of ownership of British industry and commerce through the shortsightedness and sharp practices in the business world. The risk today is posed by the Pfizer bid for one of Great Britain’s and Sweden’s iconic companies.
More
IN LETTERS
Bigotry curbed by a lack of language
Promises, promises – we’ve seen how they get broken
Tax breaks distract attention from the fundamentals
One more scare story for Yes camp
In the 1960s and 1970s, pharmaceuticals was a lossmaking department of ICI’s dyestuffs business. Its management favoured closure. Sir Michael Clapham, a visionary patriotic British business grandee, deputy chairman of ICI and subsequently president of the CBI, was adamant this should not happen. I was his clerk at the time and he graciously allowed me to speak on the topic. Our counsel to continue the pharmaceuticals activities prevailed. The closure of the pharmaceutical department would have deprived the world of statins and many other life-saving medicines. Short-term profits on this occasion, fortunately, did not outweigh long-term financial and enormous healthcare gains. Centralisation is not conducive to successful research and development.
Pfizer’s 2013 sales were $52bn, of which 39 per cent was in the US, generating huge gross margins there, but the upfront current federal tax charge was a paltry $142m, 5 per cent of the group upfront tax charge. Pfizer’s manipulation of its huge overseas capital resources to minimise its tax charge and the relocation of its tax base to the UK to encourage the naive UK authorities to support the bid, would appear to be extraordinarily cynical, and for the Treasury to rely on the promise of future tax take would appear to be whimsical. The US-dominated board seems to have lacked basic ethical standards, depriving the US economy of desperately needed tax revenue while, at the same time, being succoured by US public spending. It appears to be a highly centralised company, failing good corporate practice of dividing the two functions of chairman and chief executive.
It beggars belief to observe the apparent acquiescence of the UK towards this bid while being force-fed the harassment of BP by the US authorities. What is the good of a five-year employment guarantee when it takes 10 years to develop a new drug? A successful bid will uproot AstraZeneca’s purposeful goal of enhanced R&D capabilities.
Pfizer encompasses a corporate culture that is totally inimical to AstraZeneca. The deal is based on financial manipulation and should be rejected at any price.

FT : France to oppose GE’s $13.5bn Alstom deal

France to oppose GE’s $13.5bn Alstom deal

The French government said it would oppose General Electric’s $13.5bn offer for Alstom’s energy business, saying that it wanted the US conglomerate to suggest a different and more equitable deal.
In a letter sent to Jeffrey Immelt, GE chief executive, signed by the French industry minister Arnaud Montebourg, it said it wanted a “balanced partnership” rather than a takeover.

Last week the Alstom board of directors accepted a GE deal which valued its majority energy business, which makes up 70 per cent of revenues, at $13.5bn, despite the clear unease of the government.
“French companies are not prey,” said Mr Montebourg last week, suggesting that he preferred a rival offer from Siemens of Germany, which would involve assets swaps to create two “European champions” in trains and power.
On Monday, in a letter published by Les Echos, the government said it wanted GE to offer a deal more akin to the successful 50:50 joint venture between GE and Safran in aircraft engines, rather than a straight takeover.
“The government would like to examine with you the means of achieving a balanced partnership, rejecting a pure acquisition, which would lead to Alstom’s disappearing and being broken up,” said the letter.
It added that as part of a new deal GE could transfer its railway assets into Alstom Transport. It said that otherwise the division would be too small to compete when the company’s majority energy division was carved out.
‘‘As it stands, we unfortunately cannot support the proposals you have made . . . based solely on the acquisition of Alstom’s activities in the energy domain,” said the letter.
The French government has the power to block takeovers of French companies in “strategic sectors”, although in practice it uses a mixture of tacit warnings, public threats and financial power to try to influence deals.
In the letter Mr Montebourg stressed Alstom’s strategic importance to the country’s nuclear industry.
At a joint press conference in Paris last week Patrick Kron, chief executive of Alstom, and Mr Immelt said they were confident their deal would be completed. “This is not my first time at the Elysee,” said Mr Immelt.
On Monday GE said in a statement: “We appreciate the engagement of the French government. We believe our proposal is good for France, for Alstom and for GE. As our letter to President Hollande stressed, we are open to continuing dialogue.”

>>> Auchan likely buyer for half of Paris stores being sold by Casino

Auchan likely buyer for half of Paris stores being sold by Casino

The French, privately-owned, retail group Auchan is understood to have agreed to acquire about 25 stores currently owned by the listed competitor Casino Guichard Perrachon, French weekly LSA reported.

The French competition authority previously cleared the acquisition for the sole control of Monoprix SA by Casino Guichard Perrachon subject to conditions, including the divestment of 55 stores in Paris.

The unsourced report said the deal is currently closing and that French retailers Carrefour and Intermarche did not manage to acquire a single outlet, while Systeme U could acquire one store only.

The listed, UK retailer Marks & Spencer could acquire 6 stores, while independent retailer G20 could have agreed to buy 7 stores, the report added.


Source LSA

>>> What to look at today - 06/05/2014

US MArket closed slightly higher but in a quiet market, healthcare & TEch OP the mkt again, Financials were lagging, volume were below average @ 600mil shares, VIX @ 13,29 +2,94%, picking up from low levels...US after Hours PRTA +14.3%, PLOW +9.6%, DATA +8.6%, ININ -15.9%, AEIS -12.3%, ECOM -10.6% following earnings/guidance....Asian trading volumes were largely subdued by bank holidays in Japan, Korea, and Hong Kong as well as generally trendless sentiment overnight on WallStreet...Nikkei closed HS Closed Shanghai +0,06%...

Eur$ 1,3880 S&P Fut +0,21% European Fut : +0,32%

MAcro
- Buy European Large Caps, At Record Low Valuations: M. Stanley {NSN N5502T6JTSE8 <go>}

Keep an eye on :
- ABE SM : Abertis 1Q Net EU125 Mln; Analyst Est. EU116.6 Mln
- ADS GY : Adidas 1Q Sales, Net Miss, Keeps 2014 Forecast
- AMAG AV : Amag 1Q Net EU10.4 vs EU15m; Sees 2014 Ebitda of EU95m-EU110m
- ANDR AV : Andritz 1Q Sales Miss Ests.; Net Income EU20.7m vs EU4.1m
- AZN LN : AstraZeneca Chairman Has Got No Signals of New Pfizer Bid: DI
- AZN LN : Pfizer CEO Says Willing to Walk Away From AstraZeneca Offer: WSJ
- SPR GY : Axel Springer 1Q Sales, Ebitda Beat Ests.; Buys Yad2 for EU165m
- BMW GY : BMW 1Q Profit, Rev. In-Line; Full-Year Targets Reiterated, Auto Margin Light
- DSM NA : DSM 1Q Ebitda Ex-Items EU270m, Est. EU278m, Repeats 2014 Outlook
- DUE GY : Duerr 1Q Sales Miss Estimates, Ebit Beats; EPS Rise 26%
- DUFN VX : MORE: Dufry 1Q Sales Miss Ests., Ebit In Line
- EUZ GY : Eckert & Ziegler Bebig 1Q Net Loss EU705,000 vs EU632,000 Profit
- ERF FP : Eurofins 1Q Revenue EU304 Mln up 13%
- EVK GY : Evonik 1Q Adj. Ebitda, Sales Miss Ests., Repeats 2014 Forecasts
- F IM : Fiat Said to Start Alfa Romeo Model Expansion With Own Funding
- FIS1V FH : Fiskars 1Q Profit Declines on ‘Adverse’ Currency Development
- FRE GY : Fresenius SE 1Q Adj. Net, Ebit Miss Ests.; Keeps Forecast, Narrows 2014 Outlook for Kabi Unit
- FME GY : Fresenius Medical 1Q Net, Rev. Miss Ests.; Keeps Forecast
- FUR NA : Fugro Says 1Q Margin Decreased Significantly Y/y; 1Q Sales Up 6%
- GEA GY : GEA Group 1Q Sales Beat, Earnings Rise; Confirms 2014 Outlook
- GIL GY : DMG Mori Seiki 1Q Sales Beat Ests.; Profit After Tax Up 73%
- GLEN LN : Glencore 1Q Copper Output Rises, Zinc Falls; Marketing In Line
- KBC GR : Kontron 1Q Sales Fall 4%; Says Results in Line With 2014 Outlook
- LG FP : Lafarge 1Q Sales, Ebitda Below Estimates; Confirms FY Outlook
- LHA GY : Lufthansa 1Q Net Loss Beats; Confirms 2014 Profit Forecast
- LIN GY : Linde 1Q Operating Profit Misses, Sales Beat; Repeats Outlook
- NEX FP : Nexans 1Q Sales Fall 5.5% to EU1.6B
- PFV GY : Pfeiffer Vacuum Says 1Q Result Broadly In Line With Expectations
- PNL NA : PostNL 1Q Revenue EU1.03b vs EU1.04b y/y
- PMI IM : Pop. Milano CEO Rules Out Additional Capital Increase: Corriere
- REP SM : Repsol Studies Possible Purchase in Norway, Economista Says
- RIO LN : Rio Tinto’s Aluminum Business to Recover, Deutsche Bank Says
- SBX NO : SeaBird Exploration 1Q Sales Fall; Sees Stable Day Rates in 1H
- SOLB BB : Solvay 1Q Ebitda Ex-Items Beats Ests. on Volume Gains, Savings
- SRG IM : Snam 1Q Net EU292m vs Est. EU273m; Ebit EU542m Beats Est. EU533m
- SY1 GY : Symrise 1Q Profit Beats, Sales Miss; Sticks to 2020 Targets
- UBSN VX : UBS 1Q Net Income Beats Estimates; Sticks to 15% ROE Target, indicated 1,2% higher