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BFW 01/07 07:13 *ALTICE TO SELL SHARES IN IPO

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Altice to Offer ~EU750m of Shrs in Amsterdam IPO, Terms Show 2014-01-07 07:22:11.133 GMT

By Francesca Cinelli Jan. 7 (Bloomberg) -- Altice SA, a multinational cable operator, to use proceeds to cut debt, according to terms obtained by Bloomberg. * Next LP, a holding co. for founder and Executive Chairman Patrick Drahi, and selected managers are selling shareholders * Joint global coordinators and bookrunners: Goldman Sachs, Morgan Stanley * Other joint bookrunners: Credit Suisse, Deutsche Bank, HSBC * Joint lead managers: Credit Agricole, ING

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

To contact the reporter on this story: Francesca Cinelli in Milan at +39-02-80644-252 or fcinelli@bloomberg.net

To contact the editor responsible for this story: Andrew Rummer at +44-20-7073-3722 or arummer@bloomberg.net

Asian Market Update: Yellen approved by Senate as next Fed Chair; Samsung Electronics prelim Q4 misses estimates; Australia trade deficit narrows

***Observations/Insights*** - As expected, Janet Yellen was approved by the US Senate to take the reins of the Fed from chairman Bernanke starting in February; Final vote tally was 56-26. "Nay" count was below that of Bernanke's 30 in 2010, however a handful of Senators were absent because of weather-related travel disruptions in Washington. All 45 voting Democrats voted in favor and were joined by 11 Republicans, while 26 Republicans voted no. Separately, Senate Majority leader Reid postponed the vote on the extension of unemployment benefits to Tuesday morning. - Samsung Electronics preliminary Q4 missed consensus estimates on the top and bottom line, marking the first time that op profits fell in more than 2 years. Analysts will be quick to attribute part of the disappointing results to stronger KRW impacting exports. After opening slightly lower, shares are up about 0.2% in afternoon trade. Final Q4 results will be released in late January. - Australia November trade figures saw the deficit narrow for to a 5-month low, as exports came in flat m/m while imports contracted 1%. AUD/USD initially rose but quickly reversed those gains to fall nearly 0.5%, with trade components showing m/m declines in exports to China and overall shipments of coal. Subsequent comments from economists showed some optimism that exports did not contract despite economic slowdown, but also warned that lower imports could bode poorly for retail sales data on tap for later this week. - Speaking at the LDP party meeting, Japan PM Abe emphasized the importance of higher wages ahead of the rise in the sales tax in April.

***Economic Data*** - (JP) JAPAN NOV LOANS & DISCOUNTS CORP Y/Y: 2.6% V 2.0% PRIOR - (JP) JAPAN DEC MONETARY BASE Y/Y: 46.6% V 52.5% PRIOR (record high for 10th straight month) - (AU) AUSTRALIA NOV TRADE BALANCE (A$): -$118M V -$300ME (5th consecutive deficit; smallest deficit in 5 months) - (PH) PHILIPPINES DEC CPI M/M: 0.7% V 0.6%E; Y/Y: 4.1% V 4.0%E; CPI CORE Y/Y: 3.2% V 2.8% PRIOR

***Fixed Income/Commodities/Currencies*** - JGB: (JP) Japan MoF sells ¥2.18T in 0.6% (0.6% prior) 10-yr notes; Avg yield: 0.719% v 0.648% prior; Bid to cover: 3.84x v 4.01x prior - (CN) Daily Shibor fixings: O/N: 2.8750% v 2.9200% prior (10th consecutive decline, lowest since May 16th); 1-week: 4.2590% v 4.6330% prior (4th consecutive decline)

- AUD is the biggest mover against the greenback among the majors, falling over 0.5% below $0.8920 in the wake of mixed Australia trade figures. NZD/USD is also on the lows in the afternoon session, fallling 0.4% or about 40pips below $0.8260. USD/JPY consolidated some of its overnight decline, rising over 30pips above ¥104.50, while EUR/USD was flat in a 15pip range, supported by $1.3620 US session lows.

***Speakers/Political/In the Papers*** - (CN) China Academy of Social Sciences (CASS) researcher: PBoC policy to maintain neutral to tight policy; May see prolonged cash squeeze in 2014 - China Daily - (CN) PBoC won't conduct open market operations (OMO) in today's session; On the sidelines for 2 weeks - (CN) China Guangdong Province reports 2 new cases of H7N9 bird flu - Chinese press - (CN) China Ministry of Land and Resources to draft policies to promote economic land use - Chinese press - (JP) Japan Fin Min Aso: To continue aiming for economic growth and fiscal consolidation - financial press - (JP) Japan PM Abe: April will be a critical moment for companies to increase workers' salaries as consumption tax increase goes into effect - Kyodo - (AU) Commonwealth Bank economist comments on Australia trade data: Encouraging that exports are still holding up - SMH - (KR) South Korea Trade Ministry: Strong KRW, weak JPY trend is intensifying - (KR) South Korea Fin Min Hyun: To plan 3-year economic policy plan 'shortly'; to target 4% annual growth rate - financial press - (PH) Philippines Central Bank (BSP) Gov Tetangco: 2013 is a year of challenge; 2014 inflation to be with target

**US/Europe** - (US) FULL SENATE CONFIRMS JANET YELLEN AS INCOMING FED CHAIRMAN, AS EXPECTED; Final vote tally 56-26 (for comparison, Bernanke confirmation vote was 70-30 in 2010) - (US) Senate Majority Leader Reid (D-NV): To delay Senate vote on unemployment benefits until Tues morning - financial press - (UK) British Chambers of Commerce (BCC) releases Q4 survey: Sees record highs in domestic services exports, employment balances - (NL) Netherlands Fin Min Dijsselbloem: Netherlands will meet budget deficit targets in 2015 - financial press

***Equities*** Market Snapshot (as of 04:30 GMT): - Nikkei225 -0.5%, S&P/ASX +0.1%, Kospi +0.5%, Shanghai Composite +0.2%, Hang Seng +0.3%, Mar S&P500 +0.2% at 1,824, Feb gold +0.2% at $1,240, Feb crude oil +0.6% at $93.58/brl

US markets: - NBIX: Announces Positive Results of VMAT2 Inhibitor NBI-98854 in Kinect 2 Study; +63.9% afterhours - CVG: To Acquire Stream for $820M; sees acquisition as highly accretive; reaffirms FY13 $1.10 v $1.10e, R$2.045B v $2.05Be; +18.7% afterhours - SHLM: Reports Q1 $0.57 (adj) v $0.48e, R$585.4M v $532.1M y/y (2 ests); +7.7% afterhours - CYH: Guides FY13 Rev $12.975-13.0B v $13.1Be (prior $13-13.2B); Guides prelim FY14 Rev (assumes acquisition of HMA) $19.7-21.2B; -2.8% afterhours - CYNI: Guides Q4 lower to R$20-21M v $31.2Me ($30-33M prior); -23.0% afterhours

Notable movers by sector: - Consumer discretionary: Wynn Macau 1128.HK +4.9%, Sands China 1928.HK +4.0%, SJM Holdings 880.HK +3.8% (Morgan Stanley raises Macau gaming revenue growth estimate); Sichuan Youli Investment Holding 000584.CN +2.8% (special stock dividend); Daphne International Holdings 210.HK +11.3% (analyst action) - Consumer staples: San-A Co Ltd 2659.JP +7.7% (9M results) - Industrials: Jiangsu Tongguang Electronic Wire and Cable 300265.CN +2.3% (awarded order); CNR 601299.CN +1.3% (awarded order); Boart Longyear BLY.AU +6.8% (CEO appointment); Kubota 6326.JP -1.4% (press reports on FY13/14 results) - Financials: Shanghai International Port 600018.CN +10.0% (prelim FY13 result); QBE Insurance QBE.AU +1.4% (CBA ceases to be substantial holder) - Materials: Shanghai ANOKY Textile Chem 300067.CN +10.0% (FY13 guidance); Midas Holdings 1021.HK +3.7% (awarded contract); Luxin Venture Capital Group 600783.CN -5.5% (some company's bank account frozen) - Technology: Beijing Orient National Communication Science & Technology 300166.CN +3.1% (FY13 guidance; special stock dividend); Shanghai Kingstar Winning Software 300253.CN +1.8% (FY13 guidance, special cash and stock dividend); Samsung Electronics 005930.KR +0.2% (prelim Q4 results) - Utilities: 9501.JP TEPCO -1.2% (chairman replacement)

After Hours Summary: SHLM +7.5%, SONC +4.4%, DLR +1.6%, CYNI -20.3%, CYH -2.2% following earnings/guidance After Hours Gainers: Companies trading higher in after hours in reaction to earnings: SHLM +7.5%, SONC +4.4%, DLR +1.6%

Companies trading higher in after hours in reaction to news: NBIX +60.5% (announced positive results of VMAT2 inhibitor NBI-98854 in Kinect 2 study), EPZM +24.4% (co and Celgene advance Advance EPZ-5676 DOT1L inhibitor clinical program; EPZM earns $25 mln milestone payment), CVG +16.3% (to acquire Stream Global Services for $820 mln), CPE +10.3% (issued statement regarding Lone Star Value Management's "ill-advised and self-serving demands"), PAL +10.0% (announced 2014 operationg fuidance; targeting increased payable palladium production of 170-175K ounces), SPEX +8.3% (filed to withdraw registration statement on Form S-3), PANW +5.8% (announced acquistion of Morta Security, terms not disclosed)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings: CYNI -20.3%, CYH -2.2%

Companies trading lower in after hours in reaction to news: UNXL -8.0% (announced that the start of the manufacturing ramp for the InTouch Sensors product line has been delayed until the second quarter of 2014), COCO -7.2% (disclosed that the U.S. Consumer Financial Protection Bureau's Office of Enforcement is considering recommending that the CFPB take legal action against the company), PBF -4.7% (announces secondary public offering of 15 mln shares of common stock), PKY +3.5% (announced public offering of 10.5 mln shares of common stock), NYMT -3.3% (announced public offering of 10 mln shares of common stock), KW -3.1% (announced it plans to sell 8 mln shares of common stock in a public offering)

Samsung Forecasts Decline in Operating Profit Fourth-Quarter Operating Profit Likely Fell 3.8% to 8.4%

SEOUL— Samsung Electronics Co. estimates its operating profit declined for the first time in more than two years, highlighting the challenges the company faces in 2014 as smartphone sales momentum continues to slow amid stiff competition.

In releasing its estimates for the quarter ended Dec. 31, South Korea's biggest company by market capitalization said its operating profit likely fell 3.8% to 8.4% from a year earlier. This contrasts with 26% growth in the third quarter of 2013.

Slowing growth has been an increasing concern that will continue to weigh on investors' minds this year as sales of mobile phones still account for more than half of the company's profits and the company copes with the strengthening of the won, which makes its products less competitive overseas.

Read more Samsung Looks to Connect Smartphones, Fridges Samsung Beefs Up Tablet Offerings for Businesses Digits: Samsung, LG Unveil Bendable TVs Since the start of the year, investors have been dumping shares of Samsung on concerns that its mobile division profits are slowing down. Shares of Samsung fell 5.5% during the first two trading days of 2014, wiping out $10.5 billion off its market value. Early Tuesday, Samsung shares slipped 0.2%.

In addition to smartphones, the company also makes memory chips, TVs and home appliances.

Samsung said Tuesday it expects an operating profit of 8.1 trillion won to 8.5 trillion won ($7.6 billion to $8 billion) for the fourth quarter. Sales will likely come in between 58 trillion won and 60 trillion won, the company said in a statement. In the fourth quarter a year earlier, Samsung posted an operating profit of 8.84 trillion won on sales of 56.1 trillion won.

The profit estimate came in well below market expectations. Analysts, on average, expected Samsung to post an operating profit of 9.65 trillion won on sales of 60.4 trillion won.

The company didn't disclose net profit estimates and final results are due later this month.

Last year, Samsung began to see the pace of growth at its mobile division slow due to hefty marketing costs for smartphones and falling average prices that squeezed its margins. The launch of its Galaxy Gear smartwatch didn't do much to lift its profitability.

Nevertheless, Samsung continues to market its smartwatch heavily both at home and abroad, having celebrities and sport stars wear them in TV commercials. The company also unveiled discounts for the smartwatch during the holiday season in a sign of lackluster demand. Samsung has said it shipped more than 800,000 Galaxy Gear watches since the launch in September.

Increased volatility in won against other major currencies such as the U.S. dollar and the Japanese yen will be another factor that will weigh on its earnings this year, analysts said. A stronger won tends to hurt the price competitiveness of Samsung's products overseas as it competes for sales of consumer electronics with global brands like Apple Inc., and Sony Corp.

IBK Securities analyst Lee Seung-woo estimates that an average 10 won drop in the dollar-won rate can result in a loss of as much as 600 billion won annually (US$563 million).

"Samsung Electronics is paying close attention to global foreign-exchange trends and is responding to [potential] currency risks by diversifying its currency portfolio," a company spokeswoman said, without providing further details.

Analysts say the company may also have to set aside more funds this year for litigation with Apple as the two companies continue to battle it out in global courts over patent infringement. Samsung owes nearly $1 billion to Apple in damages for a legal case in a federal court in California.

Still, steady profits from memory chips will likely cushion the earnings blow this year as strong chip prices and its dominant market position will allow the company to make them at lower costs.

Sirius Is Free to Ask Liberty for More

Sirius May Be Under John Malone's Control, but It Can Still Hold Out for a Better Deal

For Sirius XM shareholders, it was never a question of liberty or death. The satellite-radio provider is about 52% owned by Liberty Media. And if Liberty's chairman, John Malone, has his way, it may soon own the entire thing. Liberty offered late Friday to buy the rest of Sirius in an all-stock transaction valued at $3.68 a share, a 3% premium to that day's closing price. Sirius minority shareholders would end up owning 39% of Liberty. But, due to multiple share classes, they would have no voting power. So it is Liberty if they do or Liberty if they don't. Yet Sirius investors, a majority of whom must approve a deal, aren't without leverage. Liberty seems to believe it needs full control of Sirius's cash flows to give it enough firepower to buy Time Warner Cable, either through its 27% stake in Charter Communications or on its own. And Sirius has a strong growth story of its own. Sirius, for which most users pay $15 a month to listen in their cars, had about 25.6 million subscribers at the end of the third quarter. For the past few years, it has benefited as vehicle sales have recovered from the recession. The stock has risen 132% over the past three years. Car buying may be leveling off, if last week's numbers for December are any guide. Meanwhile, Sirius shares fell hard after third-quarter subscriber metrics came in below analysts' expectations on Oct. 23 and had fallen further by last Friday. Still, analysts expect free cash flow to rise 30% in 2014 and nearly 14% in 2015. Roughly 55 million cars are equipped with Sirius radios, suggesting more than half of owners have yet to sign up, according to John Tinker with Maxim Group. Just adding some of those, allowing Sirius to spread its content costs over more users, could be very profitable. Mr. Tinker estimates the margin on such subscribers at about 70%. Granted, Sirius faces growing competition from the likes of Pandora Media, not to mention from the prospect of connected cars with Google or Apple operating systems. Google announced such a partnership with several auto makers on Monday. Still, Sirius has long competed with music players, smartphones and terrestrial radio. It distinguishes itself from music-focused Pandora by offering content such as exclusive talk shows from Howard Stern and live games from the National Football League. Apart from those two content deals, most Sirius content costs have been falling because it has had no true satellite competitor since buying XM in 2007. Liberty's current proposal values Sirius at 16.5 times 2015 cash flow. Raising the offer to $4.18—the recent peak in October and the highest since before the financial crisis—would imply a multiple of 18.8 times. That isn't impossible given growth forecasts. Sirius shareholders shouldn't hope to get out from under Mr. Malone. But they should expect a bit more for lending him a hand.

UK car sales top pre-recession levels

UK car sales roared to their highest level since 2007 last year, as abundant cheap credit and improved consumer confidence made Britain’s car market the most buoyant in Europe. The 10.5 per cent increase in vehicles sold last year epitomises the surprise rebound in the economy, as households have confounded expectations by opening their wallets even as incomes remain under pressure. Official figures show that households felt sufficiently confident to allow their savings to fall as a share of income in the year to third the quarter, when household spending accounted for five-sixths of total economic growth. Rising demand for new vehicles has become one of the more visible signs of the resurgent UK economy, as UK buyers bought more than 2.26m new cars in 2013. Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders, the industry body that collates the sales data, predicted the UK market, Europe’s second-largest by sales after Germany, would register moderate and stable growth in 2014. Last year’s total is only 6 per cent lower than 2007’s 2.4m sales, and 300,000 cars fewer than the highest-ever total seen in 2003 as the UK continued to outperform European sales, which fell by at least 2 per cent. The rebound in car sales mirrors consumption trends in the UK. As new cars were being driven out of showrooms at almost pre-recession levels, the national accounts show real household spending only 1.5 per cent lower in the third quarter than at the peak. With business investment and exports still in the doldrums, the wider economy remains 2 per cent below the level reached in early 2008. Spain was the only other major European market to see an increase in sales last year thanks to a scrappage scheme, while France, Germany and Italy all saw sales fall as the impact of the financial crisis dragged on. The UK’s boom has been led by private, individual buyers, which account for half of the market and bought about 15 per cent more cars last year than in 2012. More than one in seven cars sold in the UK last year were made here, according to SMMT – a higher proportion than before the financial crisis. Record levels of credit and windfalls from refunds for mis-sold payment protection insurance have helped fuel the rise in car sales. Roughly three of every four cars bought by individuals are bought on credit, up from one in two before the recession, as increasing numbers of buyers take advantage of rock-bottom interest rates. PPI refunds, with an average payout of about £3,000, are commonly used as a downpayment on a new vehicle, analysts and company executives say. "The UK market has been buoyant through 2013, leading Europe in terms of sales but creating a fiercely competitive sales environment as a result," said Mark Ovenden, chairman of Ford Britain, the country’s most popular car brand by sales and manufacturer of the Fiesta, the UK’s best-selling car. Mass-market carmakers that are struggling to sell vehicles elsewhere in Europe amid the worst sales slump on the continent for 20 years have also helped to tempt buyers back to the market through highly-competitive sales offers. British dealerships are awash with record levels of incentives and discounts, such as free insurance or servicing for as much as five years, or interest-free repayment packages.