39.3m shares / clean up trade for CVC / EUR600m block / range EUR14.75 to market => -3.2% discount vs. ref price / 17.8% of the ISC / 120x ADV / UBS joint books (prob with Nomura and JPM, Global Cos of the IPO)
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BN 12/10 16:25 *VODAFONE SEES `RETURN OF VALUE' PAYOUT FROM VZ DEAL ON MARCH 4 BN 12/10 16:25 *VODAFONE SAYS VERIZON SHARES ISSUED TO SHAREHOLDERS FROM FEB 24 BN 12/10 16:25 *VODAFONE MADE COMMENT IN E-MAILED STATEMENT BN 12/10 16:25 *VODAFONE SEES COMPLETION OF VERIZON TRANSACTIONS ON FEB 21
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*VODAFONE SEES COMPLETION OF VERIZON TRANSACTIONS ON FEB 21 2013-12-10 16:25:44.238 GMT
--JULIE ALNWICK
-0- Dec/10/2013 16:25 GMT
S&P issues report on US credit cycle, feels it may reached a cyclical peak
- S&P: we anticipate a mostly stable ratings outlook in 2014, though it is more likely that we could downgrade select banks, rather than upgrade
- S&P: In our view, three main factors will shape the banking industry's financial performance next year"The first is any signs from the Federal Reserve about how quickly it will begin tapering its bond purchases, as well as the outlook for monetary tightening. Second, the U.S. economic outlook remains soft, and very low interest rates suggest that revenue pressures for banks will persist. And finally, while the global credit cycle is not in sync across all regions, we
believe the U.S. credit cycle should peak in late 2014 or early 2015."
- S&P: In our view, three main factors will shape the banking industry's financial performance next year"The first is any signs from the Federal Reserve about how quickly it will begin tapering its bond purchases, as well as the outlook for monetary tightening. Second, the U.S. economic outlook remains soft, and very low interest rates suggest that revenue pressures for banks will persist. And finally, while the global credit cycle is not in sync across all regions, we
believe the U.S. credit cycle should peak in late 2014 or early 2015."
Hearing strength attributed to commentary from blogs on demand from crypto currency "miners"
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BN 12/10 15:05 *LVMH MOET HENNESSY LOUIS VUITTON SA OUTLOOK STABLE BY S&P BN 12/10 15:05 *LVMH MOET HENNESSY LOUIS VUITTON SA RAISED TO A+ FROM A BY S&P
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*LVMH MOET HENNESSY LOUIS VUITTON SA RAISED TO A+ FROM A BY S&P 2013-12-10 15:05:49.426 GMT
--JULIE ALNWICK
-0- Dec/10/2013 15:05 GMT
Investors Should Warm Up to Moncler
Moncler wants to join an elite group of companies that sport valuations as luxurious as their products. Investors will probably welcome it to the club.
The Italian company, known for down jackets with an Alps-chic look, plans an initial public offering of shares that are set to begin trading in Milan on December 16. Assuming earnings grow 25% next year, around the recent average, the stock will have a multiple of 20 times forward earnings if it prices at the top of its range, valuing the company at about €2.5 billion.
For the stock to rise further, investors need to find Moncler's business as appealing as other single-brand luxury companies frequently rumored to be takeover targets. Leatherwear company Salvatore Ferragamo SpA, for instance, trades at 28 times consensus forward earnings and rival Tod's SpA commands a multiple of 22.2 times.
One attribute Moncler shares with Ferragamo and Tod's is an impressive growth outlook. Assuming Moncler continues to add about 20 stores a year and maintains a respectable performance at existing locations, it should easily achieve double-digit percentage sales growth for the next few years.
Indeed, Moncler has proven able to open stores even in locations that rarely see cold weather, such as Sao Paulo and Taipei. And the company has a long way to go in other major luxury markets like the U.S., where it only generates about 10% of its sales.
Another advantage for Moncler is that it has few direct competitors. Many of the company's down jackets sell for $2,000 or more. While some luxury companies like Brunello Cucinelli offer such "puffer" jackets at similar prices, none are as focused on style as Moncler.
Moncler's strong brand should also help it diversify further into accessories like gloves and scarves. Jackets currently account for about 85% of revenue, suggesting the company is still in the early stages of developing new products.
Skeptics may argue that Moncler is vulnerable to warm winters, much like a ski resort that depends on snowfall. True, that may add some volatility to stock. But only a consistent and significant increase in temperatures should imperil long-term sales, causing angst to investors and environmentalists alike.
With so much potential to grow over the next several years, and takeover talk around bite-sized luxury names likely to persist, investors are likely to warm up to Moncler in a hurry.
Interpublic popping to highs ahead of conference presentation; analyst discusses the name as M&A target
Tiffany Plots China Growth Plan
BEIJING — The famed Tiffany Diamond made its China entrance on Friday, going on display in a country hungry for diamonds and eager to explore the company’s long-standing tradition of jewelry.
Before a preview of the exhibit, which features the 128.54-carat yellow Tiffany Diamond and dozens of other signature pieces, Michael Kowalski, the company’s chairman and chief executive officer, discussed the importance of China’s burgeoning diamond and luxury market to Tiffany’s growth plans going forward.
Kowalski told WWD that the firm is targeting 10 to 12 percent annual sales growth globally in the coming years. China is a critical component of that mix.
“Clearly China will be one of our fastest-growing markets over the next five to 10 years so our sales objective for China would be in excess of that 12 percent corporate average,” said Kowalski.
Tiffany’s recent fourth-quarter sales results showed a 27 percent increase in the Asia-Pacific region, and though the company doesn’t break out sales figures in specific countries, Kowalski said China was a major driver in the rise.
“The company for so many years was primarily focused on the U.S. domestic market and we really began our aggressive international expansion 10 years ago,” he explained.
“So we were very deliberate in our approach to the China market, and perhaps came to the market a little bit late compared to some of our luxury competitors.”
The company invested heavily in brand education, keying on the Tiffany history and heritage, and has found success with China’s new luxury consumer class. Up until about a decade ago, diamond engagement rings were relatively rare in China. According to a recent market report from Euromonitor, China’s diamond consumption has tripled in recent years, making it second only to the U.S.
That hunger for diamonds, particularly in engagement rings, is evident in what Chinese customers want from Tiffany, Kowalski said. While diamonds account for half of the company’s sales globally, the percentage (which he did not disclose) is higher in China.
“Diamonds are probably relatively more important here to the Tiffany brand than they are anywhere in the world,” said Kowalski.
To capitalize on that demand, the company has brought its showpiece collection to the Chinese capital, starting with a small private viewing for select clients and celebrities at an exclusive club and boutique hotel. This is the first time the Tiffany Diamond has traveled to China and is being showcased in its new, 2012 setting, platinum and diamond necklace that was designed for the company’s 175th anniversary last year.
On Saturday, the famed gem and a range of Tiffany’s showcase pieces featured in a more open exhibition, which included an original musical score written for the event by renowned Chinese composer Tan Dun. Tan is famed for his film scoring, including those for the movies “Crouching Tiger, Hidden Dragon” and “Hero.”
Following the weekend events, the diamond exhibit was due to move to the Tiffany & Co. flagship in Beijing through Jan. 5. The diamond is likely to be a hit, as Chinese consumers have been particularly drawn to yellow and other colored diamonds.
Kowalski said the event is part of the company’s effort to educate Chinese consumers about the history and legacy of the brand. Sales results show it’s working thus far, and Tiffany plans to expand in China at a deliberate pace.
The ceo said Tiffany will open three to four stores in mainland China each year for the foreseeable future, carefully choosing store locations — a decision he said can be the most important part of making a lasting presence.
When it entered the market in China, “there was a very general awareness of Tiffany,” said Kowalski. “Building depth around that awareness is something we’ve devoted a lot of effort to over the last three to five years.”
The next step will involve building more awareness of Tiffany beyond engagement rings — the company’s signature six-prong setting diamond engagement ring is its most popular product offering in China.
“I think there’s a natural evolution from the engagement business to diamonds used more broadly for gift-giving purposes,” he said.
Before a preview of the exhibit, which features the 128.54-carat yellow Tiffany Diamond and dozens of other signature pieces, Michael Kowalski, the company’s chairman and chief executive officer, discussed the importance of China’s burgeoning diamond and luxury market to Tiffany’s growth plans going forward.
Kowalski told WWD that the firm is targeting 10 to 12 percent annual sales growth globally in the coming years. China is a critical component of that mix.
“Clearly China will be one of our fastest-growing markets over the next five to 10 years so our sales objective for China would be in excess of that 12 percent corporate average,” said Kowalski.
Tiffany’s recent fourth-quarter sales results showed a 27 percent increase in the Asia-Pacific region, and though the company doesn’t break out sales figures in specific countries, Kowalski said China was a major driver in the rise.
“The company for so many years was primarily focused on the U.S. domestic market and we really began our aggressive international expansion 10 years ago,” he explained.
“So we were very deliberate in our approach to the China market, and perhaps came to the market a little bit late compared to some of our luxury competitors.”
The company invested heavily in brand education, keying on the Tiffany history and heritage, and has found success with China’s new luxury consumer class. Up until about a decade ago, diamond engagement rings were relatively rare in China. According to a recent market report from Euromonitor, China’s diamond consumption has tripled in recent years, making it second only to the U.S.
That hunger for diamonds, particularly in engagement rings, is evident in what Chinese customers want from Tiffany, Kowalski said. While diamonds account for half of the company’s sales globally, the percentage (which he did not disclose) is higher in China.
“Diamonds are probably relatively more important here to the Tiffany brand than they are anywhere in the world,” said Kowalski.
To capitalize on that demand, the company has brought its showpiece collection to the Chinese capital, starting with a small private viewing for select clients and celebrities at an exclusive club and boutique hotel. This is the first time the Tiffany Diamond has traveled to China and is being showcased in its new, 2012 setting, platinum and diamond necklace that was designed for the company’s 175th anniversary last year.
On Saturday, the famed gem and a range of Tiffany’s showcase pieces featured in a more open exhibition, which included an original musical score written for the event by renowned Chinese composer Tan Dun. Tan is famed for his film scoring, including those for the movies “Crouching Tiger, Hidden Dragon” and “Hero.”
Following the weekend events, the diamond exhibit was due to move to the Tiffany & Co. flagship in Beijing through Jan. 5. The diamond is likely to be a hit, as Chinese consumers have been particularly drawn to yellow and other colored diamonds.
Kowalski said the event is part of the company’s effort to educate Chinese consumers about the history and legacy of the brand. Sales results show it’s working thus far, and Tiffany plans to expand in China at a deliberate pace.
The ceo said Tiffany will open three to four stores in mainland China each year for the foreseeable future, carefully choosing store locations — a decision he said can be the most important part of making a lasting presence.
When it entered the market in China, “there was a very general awareness of Tiffany,” said Kowalski. “Building depth around that awareness is something we’ve devoted a lot of effort to over the last three to five years.”
The next step will involve building more awareness of Tiffany beyond engagement rings — the company’s signature six-prong setting diamond engagement ring is its most popular product offering in China.
“I think there’s a natural evolution from the engagement business to diamonds used more broadly for gift-giving purposes,” he said.
Prisa loses patience with Telefonica and invites bids for Digital+
Prisa, the listed Spanish media group, has invited offers for its pay-TV channel Digital+, reported El Confidencial, citing sources close to the company.
Despite almost eight months of talks with the Spanish telco Telefonica, acquisition negotiations have not resulted in a deal, the report said. Given the lack of progress, Prisa has decided to look further afield for a buyer.
The UK’s BSkyB, Vivendi (France), Al Jazeera (Qatar) and Liberty Global (US) have all expressed an interest, the report said.
Prisa, which hopes to raise EUR 1bn from selling its 56% stake, has set a deadline for final offers of 15 January, the item noted.
Source El Confidencial
Exec: Future investment will remain focused on core areas, will continue to simplify the petroleum portfolio
- US onshore business to generate $3B in fress cash flow by 2020
