>>> Brokers Upgrades & Downgrades -31/03/2014

>>> Up
*DELHAIZE RAISED TO OVERWEIGHT FROM NEUTRAL AT JPMORGAN
*EURASIA DRILLING RAISED TO BUY VS HOLD AT SOCGEN
*FINNAIR RAISED TO HOLD VS SELL AT NORDEA
*HANNOVER RE CUT TO NEUTRAL VS OUTPERFORM AT MEDIOBANCA
*ING U.S. RAISED TO BUY VS NEUTRAL AT GOLDMAN
*JUNGHEINRICH RAISED TO BUY VS HOLD AT DEUTSCHE BANK
*PIRELLI RAISED TO BUY VS HOLD AT SOCGEN


>>> Down
*ATRIA CUT TO STRONG SELL VS SELL AT NORDEA
*FAIVELEY CUT TO HOLD VS BUY AT SOCGEN
*FORBO CUT TO NEUTRAL VS BUY AT UBS
*SMA CUT TO HOLD VS BUY AT DEUTSCHE BANK
*SWEDISH ORPHAN CUT TO SELL VS NEUTRAL AT GOLDMAN

>>> PT Change
*BUZZI UNICEM PT CUT TO EU13.6 VS EU14 AT CITI; KEPT AT NEUTRAL
*INTESA PT RAISED TO EU3.1 VS EU2.4 AT BOFAML; KEPT AT BUY
*INTESA PT RAISED TO EU2.75 VS EU2.45 AT UBS; KEPT AT BUY
*Intesa PT Raised 5% to EU2.1 at Exane; Kept at Neutral

>>> Initiation


>>> Call
>> Stock

>> Country
*Credit Suisse Keeps Overweight Italy Equities Though Overbought

>>> Asian Update. - Last Day of Month / Quarter

Asian Market Update: Japan manufacturing slows further; China top banks see rising NPLs

***Economic Data*** - (JP) JAPAN FEB PRELIM INDUSTRIAL PRODUCTION M/M: -2.3% V +0.3%E (largest decline in 8 months); Y/Y: 6.9% V 9.9%E - (JP) JAPAN MAR MARKIT/JMMA MANUFACTURING PMI: 53.9 V 55.5 PRIOR (2nd straight decline) - (AU) AUSTRALIA MAR TD SECURITIES INFLATION M/M: 0.2% V 0.2% PRIOR; Y/Y: 2.7% V 2.7% PRIOR - (AU) AUSTRALIA FEB PRIVATE SECTOR CREDIT M/M: 0.4% V 0.4%E; Y/Y: 4.3% V 4.3%E - (AU) AUSTRALIA FEB HIA NEW HOME SALES M/M: 4.6 V 0.5% PRIOR (3-month high) - (NZ) NEW ZEALAND Q1 WESTPAC EMPLOYMENT CONFIDENCE INDEX: 108.4 V 103.4 PRIOR (multi-year high) - (NZ) NEW ZEALAND FEB BUILDING PERMITS M/M: -1.7% V +2.0%E (2nd straight decline) - (NZ) NEW ZEALAND MAR ANZ ACTIVITY OUTLOOK: 58.2 V 58.5 PRIOR; ANZ BUSINESS CONFIDENCE: 67.3 V 70.8 PRIOR (first decline in 4 months) - (NZ) NEW ZEALAND FEB M3 MONEY SUPPLY Y/Y: 6.9% V 7.0% PRIOR - (KR) SOUTH KOREA FEB CURRENT ACCOUNT BALANCE: $4.5B V $3.3B PRIOR; GOODS BALANCE: $5.4B V $4.4B PRIOR - (SG) SINGAPORE FEB CREDIT CARD BAD DEBTS: 19.8M V 20.6M PRIOR; CREDIT CARD BILLINGS: 3.1B V 3.6B PRIOR - (SG) SINGAPORE FEB MONEY SUPPLY M1 Y/Y: 7.8% V 10.7% PRIOR; M2: 2.4% V 3.6% PRIOR - (UK) UK MAR HOMETRACK HOUSING SURVEY M/M: 0.6% V 0.7% PRIOR; Y/Y: 5.7% V 5.4% PRIOR

Market Snapshot (as of 03:30 GMT): - Nikkei225 +0.4%, S&P/ASX +0.3%, Kospi +0.2%, Shanghai Composite -0.2%, Hang Seng +0.1%, Jun S&P500 +0.3% at 1,856, Jun gold +0.2% at $1,296, May crude oil -0.2% at $101.45/brl

***Highlights/Observations/Insights*** - With anticipated drop-off in consumption going into the start of higher sales tax this week, Japan manufacturing is already slowing. Markit PMI fell for the 2nd consecutive month with a 0.6pt decline, while the Output component was down over 4pts at 54.2. Separately, industrial production for Feb fell sharply as well - 2.3% drop was the biggest decline in 8 months. - Also of note in economic data, Australia TD Securities inflation was in line with prior at 2.7% y/y, which is at the high end of RBA's target range. TD Sec chief economist said it was likely this recent pickup in inflation that has kept the RBA from talking down the currency in recent months, and given the apparent build-up in inflation, RBA may hike rates at least once before the end of 2014. - All of China's top 5 banks have now reported FY13 results and the results are seen as somewhat alarming. China Construction Bank and Bank of Communications both saw an increase in y/y net profits, however impairment losses for both rose and ROEs fell. A separate report summarized that China's top 5 banks saw a 127% increase in bad debts to CNY59B. - North Korea has maintained its belligerent stance, alarming defense officials in the South. Over the weekend, North Korea Foreign Ministry said it will not rule out a new nuclear test to boost its "nuclear deterrence." Later in the day, Pyongyang announced a no-sail, no-fly warning off west coast, near disputed border with South Korea before conducting a live artillery drill. - US State Sec Kerry and Russia Foreign Min Lavrov held high-profile talks in Paris on Sunday with mixed results. While the two agree to pursue a diplomatic path toward resolving the situation in Ukraine, they appear to remain far apart in their positions. Russia is calling for a federal structure in Ukraine govt that would allow more regional autonomy to the eastern cities and to keep Russian language as the 2nd official language of the country as a backdrop to "broadest cooperation." Kerry's post-meeting remarks indicated that it will not discuss federal govt structure without Ukraine leadership at the negotiating table, which has previously opposed granting more autonomy to the east. Instead Kerry continued to demand that Russia pulls back its large troop presence on Ukraine's borders.

***Fixed Income/Commodities/Currencies*** - USD/CNY: (CN) PBoC sets yuan mid point at 6.1521 v 6.1490 prior setting (3rd consecutive weaker setting; weakest setting since Sept 18th) - USD/CNY: Offshore Yuan (USD/CNH) weakens beyond CNY6.2150; 1-year low - USD/TRY: Turkish Lira strengthens in early trade following a strong showing for PM Erdogan's ruling party in municipal elections; USD/TRY falls below TRY2.1750, 1-month high for Lira

- USD majors are mixed in Asian session - AUD/USD pared its initial gains above $0.9250, falling below $0.9230; USD/JPY is in a 15-pip range above 102.80; and NZD has continued to come off its multi-year highs seen last week to trade down over 25pips from session highs around $0.8650. EUR/USD is also contained to a narrow 15-pip range around $1.3750 ahead of critical flash CPI data in the European session that could tip the scales for the upcoming ECB decision later this week.

***Equities*** US markets: - YHOO: Said to be creating competitor to YouTube - financial press - TWTR: Said to be in plans to release mobile ad product for apps - financial press - GM: Expands ignition switch related recall by another 824K vehicles (in addition to the 1.6M already recalled); US House Committee panel provides update on GM recall details - financial press

Notable movers by sector: - Consumer Discretionary: Intime Department Store Group 1833.HK -6.6% (share, bond issuance to Alibaba; enters JV); Suning Appliance 002024.CN -2.6% (FY13 results) - Financials: China Minsheng Bank 1988.HK -2.9% (FY13 results); Bank of Communications 3328.HK -1.6% (FY13 results); China Pacific Insurance Group 2601.HK +0.9% (FY13 results); China Construction Bank 939.HK +0.8% (FY1 results); Haitong Securities 6837.HK +1.4% (FY13 results) - Materials: Angang Steel 347.HK +1.4% (FY13 results); BHP Billiton BHP.AU +1.4% (exec comment on China iron ore demand) - Energy: China Shenhua Energy 1088.HK flat (FY13 results) - Industrials: Zoomlion Heavy Industry Science and Technology 1157.HK -6.2% (FY13 results); China Railway Construction Corp 1186.HK +1.7% (FY13 results); China Railway Construction 390.HK +1.7% (FY13 results); Metallurgical Corp of China 1618.HK +3.9% (FY13 results); Mitsubishi Motors 7211.JP +1.9% (to acquire Ford factory in Philippines) - Technology: Quanta Computer 2382.TW -5.5% (FY13 results); Hon Hai Precision Industries 2317.TW -0.7% (FY13 results)

>>> JAPAN MAR MARKIT/JMMA MANUFACTURING PMI: 53.9 V 55.5



JAPAN MAR MARKIT/JMMA MANUFACTURING PMI: 53.9 V 55.5 PRIOR (2nd straight decline)
- New Export orders 52.3 v 51.5 prior in Feb. 
- Output index 54.2 v 58.4 prior in Feb. 
- Markit economist: "Firms attributed this increase in output to last minute demand before the increase in the sales tax from 5% to 8%, which is due to be implemented in April this year... It will be interesting to see whether output in the manufacturing industry will continue to grow as fast after the increase in the sales tax is implemented."

FT : Africa’s digital money heads to Europe

Africa’s digital money heads to Europe

The mobile payment system that has revolutionised business and banking in sub-Saharan Africa is to come to Europe as Vodafone seeks to spread the popular digital currency outside emerging markets. Vodafone has acquired an e-money licence to operate financial services in Europe, with plans to launch M-Pesa (which means mobile money in Swahili) in Romania as a first step to potential expansion in the region. M-Pesa has become so popular in parts of Africa that it is now a virtual currency, offering a secure means of payment for people who do not have easy access to banking services. A mobile phone text message is all that is needed to pay for everything from bills and schools fees to flights and fish, and means that the mobile phone can double as an office for the continent’s smaller entrepreneurs. Vodafone now hopes to win over an estimated 7m Romanians who mainly use cash. Michael Joseph, Vodafone director of mobile money, said that the European e-money license would allow Vodafone to operate M-Pesa in other markets, although he indicated that the focus would be on central and eastern Europe. "There are one or two [countries] we are looking at but [these are] unlikely to be in western Europe in the next year or so," he said, adding that countries with a large migrant population such as Italy were potential markets. There was also the chance to extend the platform into savings, loans and insurance in the same way Vodafone had done in Africa, he added. Within little more than a year of launching its M-Pesa-based loans and savings platform, M-Shwari, at the end of 2012, Vodafone’s Kenyan operator banked more than $270m. Vodafone has also considered expanding M-Pesa to countries where it has partnership arrangements with the local telecoms groups but no mobile telecoms business. In Kenya, where M-Pesa launched in 2007, the platform is so widely used that a third of the country’s $44bn economy washes through the system, sold by 79,000 agents nationwide. It has since been extended to Tanzania, Egypt, Lesotho and Mozambique. More recently, M-Pesa has been introduced in India, where Vodafone is seeing rapid growth given the large numbers of people without bank accounts. More than 1m people have registered in India, although Vodafone expects that will accelerate if revised regulations being considered by the Reserve Bank of India ease restrictions on such money platforms. The launch comes amid controversy over other digital means of payment such as Bitcoin. However, M-Pesa is not a digital currency rather a means of exchanging money already on mobile phone accounts. Romanian M-Pesa customers will be able to transfer as little as one new Romanian leu (0.22 euro cents) up to 30,000 lei (€6,715) per day. "The majority of people in Romania have at least one mobile device, but more than one-third of the population do not have access to conventional banking," Mr Joseph said. M-Pesa had about 16.8m active customers at the end of last year, generating about €900m in transactions per month. While M-Pesa was originally conceived as a means to retain customers in Kenya’s mobile phone market, it is now profitable in its own right with $143m in revenues from the 18.2m M-Pesa customers in Kenya alone, or about 18 per cent of overall country sales.

>>> What to look at this week end 29/03 & 30/03

US Market closed Higher, Biotech remained volatile...Volume were on the light side @ 620mil shares...VIX @14,41 -1,44%...
Telco (+1,81%), Utilities(+1,69%), Oil&GAs(+1,59%) were best performers this week Technology(-2,66%) Consumers Services(-2,52%), Healthcare(-2,32%) & Financials (-1,50%)were worst

Macro :
- Putin Calls Obama to Discuss Diplomatic Resolution to Ukraine
- Merkel Pressed by Industry-Labor on German Energy Tax, WiWo Says
- ECB's Weidmann: ECB should only react to low inflation in the event of 2nd round effects; ECB should not overreact to a fall off in inflation which is largely due to cyclical factors 
- ECB Rate Increase Seen by German Finance Ministry, Spiegel Says {NSN N38TO36S972C <go>}

Keep an eye on :
- ARL GY : Aareal Bank CFO: Improvement in bank's capital ratios may result in payment of a special dividend - G. press
- AGFB BB : Agfa CEO Reinaudo Says Company’s Prospects Improving: De Tijd
- ALO FP : Alstom Signs EU55m Turnkey Contract With Petkim for Wind Project
- AAPL US : Apple seeks $2bn from Samsung in fresh patent battle - FT
- EN FP : Bouygues Seeks Funds From Qatar to Raise Offer for SFR, JDD Says {NSN N38R4C6TTDS0 <go>}
- CNA LN : Belgium’s Ardo and Dujardin Foods Agree to Merge, Companies Say
- DAI GY : Daimler’s Mercedes-Benz Idles Brazil Truck Unit: Estado Link
- DELB BB : Delhaize to Prioritize Four Countries(US, Belgium, Greece, Serbia), discount retail in belgium was a mistake, CEO Muller Says: L’Echo
- DRI GY : Drillisch Mulls Special Dividend or Share Buyback, Welt Says
- ENI IM : Knight Vinke sells Eni stake (1%) due to uncertainty over next CEO
-GSK LN : Glaxo Plans to Build as Many as 5 Factories in Africa: Telegraph
- HOF LN : Sanpower in advanced discussions regarding takeover bid for House of Fraser - Sunday Mail
- LHA GY : Lufthansa Insists Pilot Benefits Must Be Cut, Der Spiegel Says
- LKOD LI : Lukoil Begins commercial production in Iraq's West Qurna-2 site, Sees the site as the world's second-largest untapped oil deposit - Report noting West Qurna-2 is eventually expected to reach 1.2M bpd from initial 120K bpd.
- MAB LN : Mitchells & Butlers and Greene King (GNK LN) the subject of merger rumour
- MS IM : Mediaset May Get Partner for Pay-TV After Creating New Co.: Sole {NSN N38W8X6K50Y2 <go>}
- MRK GY : Amgen Drug Cuts More Cholesterol Than Merck’s Zetia in 2 Studies {NSN N35PI66TTE0B <go>}
- MC FP : Taramax (switch swatch maker) acquired by Fendi -amount not disclosed
- MONC IM : Moncler Sees ‘Growth Scenario’ in 2014, Proposes EU0.10/Shr Div.
- NEO FP : Neopost Sees 15-20% Margins on Communication, Shipping: Investir
- NOVN VX : Novartis may spin-off company unit (poorly performing one - no details), animal health, vaccines and over-the-counter medicines mentionned by CEO Jimenez in the press earlier - Tagesanzeiger
- RCS IM : RCS to Convert Savings Shrs, Reserve Board Seats for Minority
- RDSA NA : Talevera and Aiteo, two Nigerian oil companies, have tabled the highest bid, worth USD 2.85bn, for assets owned by Shell in Nigeria
- RSA LN : RSA Insurance break-up talk follows Cevian Capital's disclosure of 7.3% stake - FT
- RWE GY : RWE, LetterOne Sign Purchase Agreement for DEA Unit, entreprise value E5.1b, Germany Won’t Halt RWE Oil-Unit Sale to LetterOne, Spiegel Says
- SAN SM : Santander CEO Marin Gets 94.5% Backing at AGM For Board Post
- SIE GY : Siemens CEO’s Russia Trip Criticized by Merkel Deputy, ARD Says
- SN/ LN : Break-up talk pushes S&N higher, according to investec, Co would be worth around 15 per cent more if it were split into three.
- TRN IM : Terna May Consider Acquisitions, Interested in Greek Asset: Sole
- UCG IM : UniCredit May Raise More Than EU1b From Selling Unit: Messaggero
- UCG IM : ICBC mulling bid for Pioneer Investment Management 
- UHR VX : Swatch CEO Hayek Seeks to Expand to 1,700 Stores, NZZ Reports

FT : Glencore closer to iron ore ambition

Glencore closer to iron ore ambition

Glencore has cleared a key hurdle in its ambition to become an iron ore miner, reaching a preliminary deal with the west African country of Mauritania for a $1bn contract for access to railway and port facilities.
The commodities giant is keen to expand into iron ore, a key ingredient of steel and a vital source of profits from rivals Rio Tinto, BHP Billiton and Vale of Brazil. The trader is seeking to develop three big projects in Mauritania, two in partnership with state-controlled miner Société Nationale Industrielle et Minière, which has exclusively exported the mineral from the country since the 1960s.

The railway contract is one of the three key obstacles to build the remote Askaf mine. Although Mauritania, which relies on iron ore for half its exports and a quarter of its tiny $4bn economy, wants to boost iron ore production, the two parties have spent two years negotiating access to railway.
Initially, SNIM asked Glencore far too high a price for access to its railway for the next 20-25 years, according to people familiar with the negotiations. But recently both sides reached a preliminary deal, pending some final discussions.
“They have now agreed with SNIM the price to use the railway per tonne [according to] international practice,” Mohamed Ould Khouna, Mauritania’s minister of oil, energy and mines, told the Financial Times in an interview in Nouakchott.
Glencore is also close to reaching a deal for a construction contractor, clearing the second barrier. But the company is still in negotiations with the Mauritanian government about the tax terms of the operation, the final third obstacle. The tax discussions could take months, according to people familiar with the talks.
Even if Glencore solves all the obstacles in the next few months, the mine is unlikely to start shipping iron ore before the end of the decade. But Abdellahi Ould Mohamed Oudaâ, chief executive of SNIM, hailed the deal with Glencore as an important step. “It’s very rare to find a mining opportunity like this with such exceptional advantages – a rail and port that are already functioning well – that exists nowhere else in Africa,” said Mr Oudaâ.
Rio Tinto and Vale, which are building a massive rival iron ore project in Guinea, have faced multiple obstacles and delays because of the need to build a multibillion-dollar heavy-haul railway across under-developed west Africa.
The outlook for iron ore prices is clouded by the slowdown in China, the largest importer of the commodity. Iron ore prices have fallen to $110 a tonne, down from a peak of $190 a tonne reached during a shortage in 2011. But iron ore prices are still nearly 10-fold higher than a decade ago, when it traded at $12 a tonne.
Copper miner First Quantum and gold company Kinross are already producing metals in Mauritania. The country rates poorly in the World Bank’s Doing Business rankings, but the government, headed by president Mohamed Ould Abdel Aziz, has undertaken efforts to reform its economy in the past five years. SNIM remains a national treasure off limits to privatisation, however.
Glencore also has plans for two other large-scale iron ore Mauritania sites, at Guleb El Aouj near Askaf in the northeastern desert, and at Lebtheinia further west. Both are joint ventures with SNIM, while its Askaf project is a standalone development. All are held via Glencore’s subsidiary Sphere Minerals, which is listed in Sydney.
Unlike other top miners that are seeking to expand in Australia, Mongolia and Latin America, Glencore has put Africa at the core of its development.

FT : China’s big banks double bad-loan write-offs


China’s big banks double bad-loan write-offs

Signage for Industrial and Commercial Bank of China Ltd. (ICBC) stands illuminated at night in Shanghai, China, on Sunday, June 30, 2013. Chinese banks' valuations are close to their lowest on record as the nation's interbank funding crisis exacerbated investors' concern that earnings growth will stall and defaults may surge as the economy slows©Bloomberg
China’s biggest banks more than doubled the level of bad loans they wrote off last year, in a sign that financial strains are mounting as growth in the world’s second-largest economy slows.
The five biggest Chinese banks, which account for more than half of all loans in the country, removed Rmb59bn ($9.5bn) from their books in debts that could not be collected, according to their 2013 results. That was up 127 per cent from 2012, and the highest since the banks were rescued from insolvency, recapitalised and publicly listed over the past decade.

The sharp acceleration in write-offs is the latest indication of the turbulence now buffeting China’s financial system. The bond market suffered its first true default in March, two high-profile shadow bank investment products were spared from collapse by last-minute bailouts earlier this year, and a small rural lender suffered a brief bank run last week.
Data also point to a deeper economic downturn in the first quarter than expected, putting China on track this year for its slowest growth since 1990.
The deterioration has fuelled expectations that Beijing will act soon to shore up the economy. “Increasing downward pressure on the economy should not be neglected,” Li Keqiang, China’s premier, said last week. “We have policies in store to counter economic volatility.”
China’s banks built up strong defensive walls over the past decade of their turbocharged growth that are now being tested. Since they had already set aside large reserves against possible losses, they were able to double their loan-write offs without undercutting their profitability or their capital cushions.
Profits for the five biggest banks, including Industrial and Commercial Bank of China, rose 7 to 15 per cent in 2013, slower than 2012 but still healthy. Thanks to the write-offs, the banking sector’s bad loan ratio edged up just slightly last year, to 1 per cent from 0.95 per cent. However, the market valuation of Chinese bank shares shows that investors believe their bad loans might be as much as five times higher than officially reported.
Liao Qiang, China banks analyst with rating agency Standard & Poor’s, said lenders appeared to have adequate provisions for a downturn. But he expressed concern that banks were using write-offs to keep their non-performing loan (NPL) ratios artificially low.
“Some banks fear that if the NPL ratio is undesirably high, there may be some negative publicity, and so they are more active in write-offs,” he said.
This has been particularly the case with midsized lenders, which bore the brunt of a cash crunch last June when interbank borrowing rates spiked to double digit levels. Minsheng Bank, which reported its 2013 results on Sunday, said its bad-loan ratio rose to a mere 0.85 per cent last year from 0.76 per cent in 2012. But had it not been for aggressive write-offs and transfers of bad debt to third parties, Minsheng’s underlying NPL formation rate would have been 135 per cent higher, according to analysts at Citi.
Regulators have recently relaxed write-off rules to make it easier for banks to strip out bad debts, allowing them to free up space on their balance sheets to absorb a fresh wave of defaults.
Mr Liao said he expected the pace of write-offs would accelerate this year.

FT : Hochtief seeks to increase Leighton stake

Hochtief seeks to increase Leighton stake

Hochtief’s A$1.2bn (US$1.1bn) bid to tighten its grip on Leighton Holdings, Australia’s biggest construction company, formally opens this week amid concerns among shareholders, analysts and trade unions about the impact of greater foreign control.
The German building group’s dramatic ousting of Leighton’s chief executive and chief financial officer this month, and its bid to raise its 58 per cent stake to 74 per cent sent shockwaves through Australia’s tight-knit business community.

ACS, the Spanish construction giant that won control over Hochtief in a hostile takeover in 2011, masterminded the coup.
The bid represents a change in strategy at Hochtief, which until recently was a passive investor prepared to let local managers run Leighton.
“The Madrid group has ridden roughshod over the rights of minority shareholders and has not got a good record on corporate governance,” said the Australian Shareholders’ Association.
Formal bid documents, due to arrive in shareholders’ postboxes on Monday, offer A$22.50 a share to acquire three out of every eight shares that Hochtief does not own.
The German group rebuffed a request from Leighton’s board to make a full takeover offer.
A partial offer for shares, rather than a full offer, would leave minority shareholders stranded holding 26 per cent of the group, said the ASA.
“They have shown disregard for a long line of independent directors in Leigh­ton by disposing of some of the best in Australia. This is culturally insensitive when the Australian market is where the company makes most of its money.”
Between 1987 and 2010, under chief executive Wal King, Leighton expanded rapidly, becoming a conglomerate with interests spanning mining, construction, telecoms and utilities.
Last year the company generated revenues of A$22.6bn. Leighton is by far the most profitable unit of Hochtief, generating 62 per cent of pre-tax profit and 57 per cent of revenues in 2010.
But since 2010 Leighton has hit turbulence. Marcelino Fernandez Verdes, Hochtief chief executive, who formally assumed the position of Leighton chief executive last week, is the fourth person to hold the company’s reins in as many years.
“After a difficult few years for Leighton Holdings, ACS have decided to take control,” said Simon Fitzgerald, analyst at Moelis.
“Shareholders can expect to see some swift changes, as opposed to changes over time.”
Analysts said a big restructuring and asset sales were likely.
The Construction, Forestry, Mining and Energy Union has sought a meeting with Leighton’s new management on its plans for the company.
Citigroup said the change in control was likely to lead to a rapid shake-up of Leighton’s organisation, from a divisional model towards a more centralised model similar to ACS’s.
This could produce cost savings but would come with risks.
ACS’s debt pile, which stood at €5.3bn at the end of September, prompted Standard & Poor’s to place Leighton’s triple B minus credit rating on negative watch following Hochtief’s bid to tighten control.

FT : US drive on LNG exports hit by delays

US drive on LNG exports hit by delays

New plants for exporting liquefied natural gas from the US have been held up by regulatory delays as government agencies have failed to assess issues such as environmental impact as quickly as the projects’ backers had hoped.
European countries’ interest in importing US LNG has been sharpened by the rise in tensions with Russia, but there is still only one export project that has begun construction.

The plans are also coming under growing pressure from environmental groups.
LNG export plants need two sets of approvals: from the Department of Energy to sell gas overseas and from the Federal Energy Regulatory Commission to show that they will meet environmental, safety and other regulations.
President Barack Obama’s administration has stepped up the pace of approvals for export permits over the past 12 months, awarding six more across five sites, but approvals from Ferc have not shown a similar pick-up.
Two projects, Cameron LNG in Louisiana and Freeport LNG in Texas, had hoped to secure approval last year, but both have received their first draft environmental impact statements only this year, and face months of consultation before a decision is expected.
Another, Cove Point in Maryland, has been told it will receive its environmental assessment in May, and face further consultations after that.
None of these projects has yet finalised its financing, but analysts say that should not be a problem for plants with reliable buyers for the gas.
Cameron LNG has signed up GDF Suez of France and Mitsui, Mitsubishi and Nippon Yusen on Japan as customers and equity investors, while Freeport LNG has deals with Osaka Gas and Chubu Electric of Japan, and BP.
Frank Harris, an analyst at Wood Mackenzie, said: “For the latest wave of US LNG plants . . . the real constraint on their progress is the Ferc process.”
Lawyers who have been following the approvals process said one reason for the delays was that Ferc has to incorporate the work of several other government agencies. For example, it had to wait for the Pipeline and Hazardous Materials Safety Administration to model what would happen in the event of an LNG spill.
Giving evidence to the House of Representatives energy committee last December, Tony Clark, a Ferc commissioner, also highlighted the “significant workload increase” the regulator faced because of the LNG plants.
Bill Cooper, president of the Center for Liquefied Natural Gas, which represents exporters, said: “We’re certainly not rushing to hit the panic button. It’s a complicated process with many moving parts.”
Ferc is expected to approve the projects it is reviewing. However, campaigners against gas exports, including the Sierra Club environmental group, are likely to mount legal challenges.
Nathan Matthews of the Sierra Club said the National Environmental Policy Act compelled regulators to consider the indirect effects of the LNG projects, including the additional US gas production that would be induced by exports, which Ferc has so far failed to do.
350.org, the group behind the high-profile campaign against the Keystone XL oil pipeline, has also joined the effort to block LNG exports.