TheChek News Flow

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Lafarge Sells Europe, S.America Gypsum Stake to Etex for EU145M 2013-12-26 10:11:30.834 GMT

By Vidya Root Dec. 26 (Bloomberg) -- Lafarge said in an e-mailed statement that it’s selling its 20% stake in European and South American gypsum operations to Etex for 145 million euros in cash. * Lafarge expects the stake sale to close in coming weeks.

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To contact the editor responsible for this story: Vidya Root at +33-1-5365-5018 or vroot@bloomberg.net

Boxing Day holiday limits participation

***Notes/Observations*** - Japan Nikkei225 Index closed above 16,000 level for first time since Dec 2007 - Japan PM Abe visited the Yasukuni Shrine which angers regional neighbors - BOJ Nov Minutes reiterates that it expected a moderate economic recovery and would adjust policy as needed - China said to have set 2014 GDP growth at 7.6% vs. 7.5% official target

***Economic Data*** - (TR) Turkey Dec Consumer Confidence Index: 75.0 v 77.5 prior - (TW) Taiwan Central Bank (CBC) left its Benchmark Interest Rate unchanged at 1.875%; as expected

Fixed Income: - None seen

*** SPEAKERS/FIXED INCOME/FX/COMMODITIES/ERRATUM *** ***Equities** Indices [Stoxx50 closed FTSE 100 closed, CAC-40 closed, IBEX-35 closed, S&P 500 Futures reopens at 06:00 ET/11:00 GMT)+, DAX closed, SMI closed, FTSE MIB closed]

- Boxing Day holiday kept equity markets closed.

Speakers: - Portugal PM Coelho stated that the country continued to face uncertainties and obstacles to overcome crisis and that all instruments needed to be mobilized to conclude bailout program without disturbances. He saw 2014 as full of challenges - Belgium Fin Min Geens stated that the country was on track to lower debt to GDP ratio below 100%. He added that Budget Deficit to GDP ratio was below 3% with economic growth of approx 1% even with strict fiscal policy - S&P raised Ukraine sovereign outlook to stable from negative and affirmed its B- rating. S&P stated that Russia $15B direct financing announced on Dec 18th should cover govt external financing needs over the next 12 months. It cautioned that it could lower Ukraine's sovereign ratings if Russian financial support became less certain - Russia Fin Min Siluanov stated that he was in talks with Ukraine about instruments other than bonds to support budget and financial markets. Russian banks in talks with Ukraine companies about transport and other projects - Taiwan Central Bank post rate decision statement noted that global economy was seen as stable but Fed tapering would affect the recovery. It noted that liquidity was moderately loose. It saw 2014 GDP growth above 2013 level and forecasted 2014 CPI at 1.2% vs. 0.9% this year. It noted that inflationary pressure would not be significant. Exports to have stable growth in 2014 - Thailand Election Commission said to have asked govt to postpone Feb 2nd .election citing violence - China to keep fuel prices unchanged in current cycle (**Note: NDRC has raised fuel prices during the last two cycles. The most recent was back on Dec 12th) - China Fin Min Lou Jiwei to effectively prevent fiscal risks in 2014. China to push forward resource tax reform and enhance local govt debt management - China Foreign Ministry spokesperson Qin Gang: Shrine visit undermines foundation of China-Japan ties - US Embassy in Japan: Disappointed by shrine visit. PM Abe visit will exacerbate tensions with neighboring countries. Wants Japan to find constructive ways to deal with historical issues. It also asked japan to create conditions to solve island dispute

Currencies/Fixed Income: - The Nikkei225 Index registered its seventh straight gain and hit a fresh six-year high above 16,000 as the yen continued to hit 5-year lows against the USD and Euro currencies. The USD/JPY edged closer to testing the 105 handle; highest level since October 2008. Some dealers noted that better than expected upcoming US jobless claims data could help it test the 105 handle. - The Turkish currency (Lira) continued to hit fresh record lows against the USD and Euro after Turkey PM Erdogan reshuffled his cabinet following an unscheduled meeting with President Gul. The USD/TRY tested above the 2.10.

Political/In the Papers: - Private equity firms to pay over $1.0B to settle collusion case that is winding its way through a Boston federal court - NY Post - Turkey PM Erdogan reshuffled his cabinet following an unscheduled meeting with President Gul. Replaced the three resigning ministers (Interior, economy and the environment) - Japan PM Abe visited the Yasukuni Shrine (seen by Japan's Asian neighbors as a symbol of its past militarism) - BOJ Gov Kuroda stated that Japan was not completely out of deflation but on track to achieve 2% price target. - South Korea Fin Min Hyun stated that its economic recovery was strengthening but monetary policy changes in advance nations were a risk. - Elderly man dies from H7N9 bird flu in Hong Kong

**Looking Ahead*** All times listed for economic events are denominated in Eastern Standard Time (Add 5 hours for GMT equivalent) - 06:00 (RU) Russia Gold and Forex Reserve w/e Dec 20th: No est v $512.7B prior - 06:30 (CL) Chile Central Bank's Traders Survey - 08:30 (US) Initial Jobless Claims: 345Ke v 379K prior; Continuing Claims: 2.83Me v 2.884M prior - 09:00 (MX) Mexico Nov Preliminary Trade Balance: -$742Me v -$128.9M prior - 11:00 (US) Weekly DOE Crude Inventories - 12:00 (FR) France Nov Net Change in Jobseekers: -5.0Ke v -20.5K prior; Total Jobseekers: 3.27Me v 3.275M prior - 14:00 (AR) Argentina Nov Supermarket Sales Y/Y: No est v 18.4% prior; Shop Center Sales Y/Y: No est v 20.4% prior - 16:00 (KR) South Korea Jan Manufacturing Business Survey: No est v 78 prior; Non-Manufacturing Survey: No est v 72 prior - 18:15 (JP) Japan Dec Markit/JMMA Manufacturing PMI: No est v 55.1 prior - 18:30 (JP) Japan Nov Jobless Rate: 3.9%e v 4.0% prior; Job-to-Applicant Ratio 3.9%e v 4.0% prior - 18:30 (JP) Japan Nov National CPI Y/Y: 1.5%e v 1.1% prior; CPI Ex Fresh Food Y/Y: 1.1%e v 0.9% prior; CPI Ex Food, Energy Y/Y: 0.5%e v 0.3% prior - 18:30 (JP) Japan Nov Tokyo CPI Y/Y: 0.9%e v 0.9% prior; CPI Ex Fresh Food Y/Y: 0.7%e v 0.6% prior; CPI Ex Food, Energy Y/Y: 0.3%e v 0.2% prior - 18:50 (JP) Japan Nov Preliminary Industrial Production M/M: 0.4%ev 1.0% prior; Y/Y: 5.4%e v 5.4% prior - 18:50 (JP) Japan Nov Retail Trade M/M: +1.0%e v -1.0% prior; Y/Y: 3.0%e v 2.3% prior - 20:00 (PH) Philippines Oct Trade Balance: -$700Me v -$666M prior; Imports: No est v $5.7B prior; Imports Y/Y: 8.0%e v 7.2% prior - 20:30 (CN) China Nov YTD Industrial Profits Y/Y: No est v 13.7% prior

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BN 12/26 05:13 *BOUYGUES GETS EU96M RENOVATION CONTRACT IN PARIS, ECHOS SAYS

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Bouygues Gets EU96M Renovation Contract in Paris, Echos Says 2013-12-26 05:16:29.961 GMT

By David Whitehouse Dec. 26 (Bloomberg) -- City of Paris has decided to give Bouygues the contract to renovate Le Palais Omnisports de Paris- Bercy, to be called Bercy Arena in future, Les Echos reports, without citing anyone.

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To contact the editor responsible for this story: David Whitehouse at +33-1-5365-5059 or dwhitehouse1@bloomberg.net

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BFW 12/26 05:37 *RENAULT TRUCKS PLANS LAYOFFS AFFECTING 3,500 WORKERS: ECHOS BN 12/26 05:37 *RENAULT TRUCKS PLANS LAYOFFS AFFECTING 3,500 WORKERS: ECHOS BN 12/26 05:37 *RENAULT TRUCKS LAYOFFS TO LAST 5-12 DAYS, ECHOS SAYS

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Renault Trucks Plans Layoffs Affecting 3,500 Workers: Echos 2013-12-26 05:43:41.570 GMT

By David Whitehouse Dec. 26 (Bloomberg) -- Layoffs will last for between five and 12 days at the Blainville plant in Normandy, Les Echos reports, citing an unidentified co. spokesman. * Layoffs will last for five days at Bourg-en-Bresse: Echos * Layoffs may be extended in Feb. and March depending on the order book: Echos * Co. has workforce of 10,000: Echos.

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To contact the editor responsible for this story: David Whitehouse at +33-1-5365-5059 or dwhitehouse1@bloomberg.net

Sprint/T-Mobile: Breaking Bad

T-Mobile US has seen this movie before.

News that Sprint is considering making a bid for the No. 4 U.S. wireless carrier by subscribers has sparked a 27% rally in T-Mobile shares since Dec. 12's close. But it also has inspired comparisons with AT&T's bid to buy T-Mobile in 2011. Regulators rejected that deal, saying they wouldn't allow a move to three national carriers from four.

So T-Mobile is no stranger to the tough sell. Considering the scrutiny and considerable risk of rejection a Sprint takeover bid would face, T-Mobile will likely want it to come with a big breakup fee. In AT&T's case, that amounted to $4 billion in cash and other assets—or about 10% of the overall offer, a huge proportion.

Applying a 30% control premium to T-Mobile's $25.8 billion current market capitalization implies a deal size this time of about $33.5 billion. At that scale, a 10% breakup fee would be $3.4 billion. For Sprint, which analysts estimate will have earnings before interest, taxes, depreciation and amortization of $6.6 billion in 2014, that would be a significant potential payout.

Sprint likely could trim any breakup fee by offering T-Mobile's shareholders a bigger control premium. But they likely would want that in cash, not stock. T-Mobile already trades at 7.4 times 2014 Ebitda, compared with 6.1 times for AT&T and 5.3 times for Verizon Communications. But Sprint's stock looks even pricier, at 9.2 times.

Before any proposal even gets to regulators, Sprint would have to calm T-Mobile's nerves with a hefty insurance premium.

Asian Market Update: Nikkei225 closes above 16,000 for first time in six years; PM Abe visits Yasukuni Shrine

**Economic data - (SG) Singapore Nov Industrial Production M/M: -2.8% v -2.6%e; Y/Y: 4.0% v 5.3%e - (JP) Japan Nov Annualized Housing Starts: 1.033M v 989Ke; Y/Y: 14.1% v 9.2%e; Construction Orders Y/Y: 2.2% v 61.1% prior - (JP) Japan Dec Small Business Confidence: 51.1 v 51.1 prior

Speakers: - BOJ Gov Kuroda stated that Japan was not completely out of deflation but on track to achieve 2% price target. He also reiterated the view to continue current policy until price target was achieved. He spoke with PM Abe on both domestic and global economic situations. (**Reminder: On Dec 23rd The Monthly Cabinet report for Japan dropped the deflation term from economic report for the first time since 2009) - South Korea Fin Min Hyun stated that its economic recovery was strengthening but monetary policy changes in advance nations were a risk. Korea to flexibly allocate bond issuance in 2014 and would make effort to revitalize inflation-linked bonds. He added that 2014 policies target to spread recovery to private sector and that the Govt would soon announce economic policy direction for 2014 - Japan PM Abe visited the Yasukuni Shrine and the Japanese Consulate in Shanghai soonafter issued warning on possible anti-Japanese sentiment; and urged caution to Japanese visiting China (**Note: The shrine is seen by Japan's Asian neighbors as a symbol of its past militarism, as it honors Class-A war criminals along with Japan's war dead. Past visits by prime ministers and Cabinet members have angered China and South Korea) - Taiwan Foreign Affairs official called on Japan PM Abe to refrain from escalting tensions - South Korea expressed anger over Abe's visit to Yasukuni Shrine. Cultural Minister Ryong stated that Japan should build trust with its neighbors by facing history and apoligize to countries that suffered under its colonial rule - China Vice Premier Liu canceled meeting with Japan

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Maurel & Prom Completes Caroil Purchase; Divests Tuscany Stake 2013-12-24 13:53:45.479 GMT

By Benjamin Dow Dec. 24 (Bloomberg) -- Maurel & Prom sold 109m Tuscany International Drilling shares, entire stake in co., to “entity incorporated in the Cayman Islands.” * MAU FP assumes $50m of TID CN debt in accordance with Credit Suisse credit agreement * Maurel expects to buy 2 drilling rigs from Tuscany for $23m, $15m of sum already paid * MAU FP pares gains to +0.8% today; up as much as 1.2% earlier in sixth day of gains; volume 284k shares is 1.2x daily average over past 3 months * TID CN down 69% YTD

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To contact the editor responsible for this story: Benjamin Dow at +7-495-771-7735 or bdow2@bloomberg.net

Batista to relinquish OGX control in debt deal

Former Brazilian billionaire Eike Batista is to relinquish control of his flagship oil company as part of a deal with creditors to exchange about $5.8bn in debt for shares. Under the deal, which comes less than two months since the company filed for bankruptcy and will complete its disintegration, bondholders may also inject about $200m-$215m into the restructured entity. "The existing shareholders of the company, after the dilution stemming from the creditors’ debt-for shares swap . . . will be left with equity representing 10 per cent of the capital of the restructured company," said the group, formerly known as OGX, renamed Óleo e Gas Participações under the new arrangements. The deal was unexpected, and come just two months after the then-OGX filed for bankruptcy protection, blaming differences with creditors during the restructuring talks. The implosion of the oil, energy, mining and logistics magnate’s empire saw him tumble from the top ten of the Forbes rich list to eviction from its ranks altogether this year, seen by many as emblematic of the fall from grace of Brazil the eyes of investors in the past few years. Others argue the brash businessman’s success was a product of the surge of global liquidity, as foreign investors sought out any venture that would deliver a yield, and was atypical of the generally cautious approach of the Brazilian business community. OGX and Mr Batista’s woes came to public attention when the oil company admitted earlier this year that its only producing field was not performing as expected and would be shut down next year. Since then, however, it has fought hard to convince financial markets that it remains a going concern, and recently began production at a new field. Faced with the prospect of even greater losses if the company was liquidated, OGX bondholders will hope that value can be saved by allowing the group to continue operations. Bondholders will receive additional shares in exchange for investing the additional $200m-$215m, under the plan. Óleo e Gás said it will present the restructuring plan to the bankruptcy court in Rio de Janeiro by January 24. The restructuring will be dependent on the approval of another Batista unit, oil services group OSX, which supplies equipment to Óleo e Gas, the oil company said. The two companies together owe a total of $5.8bn.

Shell likely to sell Woodside stake to institutional investors rather than to strategic buyer Royal Dutch Shell’s 23.1% shareholding in Woodside Petroleum to institutional investors rather than to one strategic buyer, according to a wire report. A Reuters report cited bankers who said the stake in the Australian oil company is obviously a potential disposal for Ben van Beurden, who is to start in his role of chief executive of Shell on 1 January. The new CEO will indicate his strategy for Shell when the FTSE-100 energy company announces its 4Q13 results, the item said.

Reuters could not verify Shell’s plans for the stake, the report said. Woodside and Shell refused to comment about any plans for the stake, the article added.

The bankers cited by the report said other global investor-owned energy companies that are large enough to acquire the stake are also looking to sell assets. The article estimated a valuation of about USD 6.4bn (EUR 4.67bn) for the stake.

Strategic buyers, such as the leading Chinese oil companies, and national oil companies of nations such as Thailand or India might be deterred by Shell’s unsuccessful attempt at acquiring outright ownership of Woodside in 2001, the article said.

One banker cited by the report said finding a bidder might prove difficult. Selling the stake would involve a governmental review, the banker added. Although Woodside is no longer of such strategic importance as when Shell’s takeover attempt was blocked, it remains the biggest independent oil and gas group in Australia. That would likely mean that Chinese national oil companies would not be welcome as bidders, the banker said.

The banker added that sovereign wealth funds from Southeast Asia or the Middle East might consider buying small stakes, but added that such groups would be unlikely to buy the entire stake.

The banker argued that Shell would dispose of the stake through a mixture of share placing, strategic sales and probably by Woodside buying back shares.

A second banker cited by the report said potential strategic buyers had bee sounded out about buying the entire stake, but without success. The second banker predicted that Shell would sell the stake to institutional investors via a market placing.

Source Newswire Round-up

Turkey’s Erdogan is under pressure as three cabinet members quit Turkey’s corruption crisis deepened on Wednesday as three cabinet ministers close to Prime Minister Recep Tayyip Erdogan tendered their resignations – among them economy minister Zafer Caglayan and interior minister Muammer Guler, both of whose sons are in prison awaiting trial on corruption charges. As interior minister and head of the police force, Mr Guler was particularly vulnerable as he was ultimately responsible for investigating his own son. Police raids more than a week ago were prompted by what has been revealed as a two-year investigation into bribery, corruption and gold smuggling. Mr Guler’s son, Baris, was discovered with a series of strong boxes in his home as well as a counting machine to keep track of large quantities of cash. Those responsible for conducting the raids have been removed from their posts for conducting the operation without informing their superiors. However, it is the resignation of the third cabinet member, urbanisation and environment minister Erdogan Bayraktar, that may prove most damaging. Mr Bayraktar, a political ally of the prime minister since Mr Erdogan became mayor of Istanbul in 1994, made clear he would not go quietly. He said he was under pressure to resign and, furthermore, to issue a statement that would not put pressure on the prime minister. He added that everything he had done had been with Mr Erdogan’s knowledge. "I declare my resignation from parliament, and as a minister," Mr Bayraktar said. "However, I also believe that to make the people more comfortable, the prime minister should also resign." Mr Bayraktar is not the only one of Mr Erdogan’s erstwhile political confidants to have sparred publicly with him in recent days. Analysts say the corruption charges represent an escalation in the animosity between Mr Erdogan and his former ally, the septuagenarian Islamic cleric Fethullah Gulen, who lives in self-imposed exile in Pennsylvania and has a large following in the Turkish police and judiciary. Prime Minister Erdogan again blamed foreign conspirators for colluding in his government’s problems. In a televised address, he accused "some media and special interests" of betraying the country. Borsa Istanbul, Turkey’s main stock exchange, fell 4.2 per cent on news of the resignations to its lowest level in more than four months. The latest twist in the crisis is likely to aggravate Turkey’s recent economic imbalances by putting further pressure on the Turkish lira. The central bank’s recent decision to defend the currency with reserves, rather than via higher interest rates, may limit inward flows. This, in turn, is likely to have a negative impact on reducing a current account deficit currently running at more than 8 per cent a year.