TheChek News Flow

Conversation with Celesio IR – 7 Jan 2014 ·         According to Celesio IR the “latest” date to announce amendments to offer would be one day before the offer close [9 Jan, 24:00 hrs local time] of the acceptance period. ·         The IR confirmed that Mckesson has waived its right to reduce the acceptance level from 75% and hence “there is no more chance” to change this level. ·         The IR said there are “no other comments” on the deal from his side and would wait for the related parties (Mckesson and Elliott) to make the move/announcements.     Conversation with BaFin – 7 Jan 2014 ·         The BaFin contact confirmed to us that when a bidder makes a statement [similar to that of Mckesson’s statement] that it would not waive the minimum acceptance level, such a statement is binding and going back on such a statement is “extremely difficult”. For BaFin to even consider reversal to such a statement, there should be “more than exceptional circumstances”. ·         However, if a major shareholder of a target makes such  statement [such as the one made by Elliott on 23 Dec] it is difficult to conclude whether it would be binding  as in a similar sense to that of a statement made by a bidder. No such precedent exists and BaFin will reach a solution if such an issue comes before it. However, the contact noted that there could be an argument in favour of the binding element to such a statement. ·         New offer: if a deal fails because the offer failed to reach the minimum acceptance condition, a bidder is restricted from making a new offer for 1 year from the lapsed of bid. However, such a restriction could be lifted by BaFin if the target agrees to it. ·         Subsequent offer price: there are no takeover rules specifying that a subsequent offer should be made at or above the failed bid price.  However, the subsequent offer should meet the “minimum price” rule and BaFin has discretion over such offers.      

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Renault, Michelin Have Most Upside in EU Autos; Fiat Lags 2014-01-07 12:25:23.653 GMT

By Brian Lysaght Jan. 7 (Bloomberg) -- Renault, Michelin and Nokian Renkaat have the most potential upside among EU auto stocks in 2014 based on consensus 12-mo. price targets compiled by Bloomberg. * Renault has 15% potential return from current price; Michelin 13%, Nokian Renkaat 8.7%, Rheinmetall 7% * Most downside: Fiat -14%; Continental -3%; Pirelli -0.6% * Others: Faurecia 5.9% upside; Peugeot 5.5%; GKN 5.3%; VW (pfd) 5.2%; BMW 3.9%; Daimler 3%; Porsche 1.4%; Valeo 1.1% * SXAP avg is 3% upside; SXAP advanced 37% last year * Best 12-mo. total return: Valeo 108%, Continental 81%, Fiat 67% * Worst return: Michelin 3.7%, Nokian 9.5%, BMW 9.9% * Best analyst avg. rating: Volkswagen (28 buy, 7 hold, 3 sell); GKN (10 buy, 5 hold, 0 sell); Michelin (15 buy, 4 hold, 3 sell) * Worst rated are Peugeot (8 buy, 8 hold, 12 sell); Fiat (7 buy, 7 hold, 12 sell); Nokian Renkaat (7 buy, 8 hold, 4 sell) * Most shorted: Peugeot 14.8% of shares outstanding, 12 days to cover: Markit Securities as of Jan. 3 * See: Renault May Lead Peers With 15% Gain in 2014, Consensus Says: Bloomberg Industries

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To contact the reporter on this story: Brian Lysaght in London at +44-20-7330-7908 or blysaght@bloomberg.net

To contact the editor responsible for this story: James Ludden at +44-20-7673-2645 or jludden@bloomberg.net

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S&P 500, Stoxx 600 to Undergo Tactical Correction in 1Q: UBS 2014-01-07 12:14:13.94 GMT

By Francesca Cinelli Jan. 7 (Bloomberg) -- Technical analysts Michael Riesner and Marc Mueller expect weak start into 2014 with risk of 5% to 10% correction into deeper 1Q bottom for S&P 500 (1,730) as basis for last tactical buying opportunity and final bull wave into summer (1,920 -1,970 target zone). * Say potential summer top may be followed by several months lasting distribution before starting real correction into later 2014 and into 1H2015 * In potential cyclical bear mkt into 1H2015 see risk of 20% to 30% correction, which should send SPX minimum down to 1,570 (last major breakout level in SPX) * In Europe, 1Q correction to be followed by potential summer top at 350 for Stoxx 600, and 10,600 for DAX * In periphery expect more gains into summer; say Portugal currently big outperformer, could surprise into summer

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To contact the editor responsible for this story: Francesca Cinelli at +39-02-80644-252 or fcinelli@bloomberg.net