(BFW) Rolls Rises; Tognum Accretive, Waertsilae Bid Unlikely: Investec

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Rolls Rises; Tognum Accretive, Waertsilae Bid Unlikely: Investec 2014-03-10 09:24:38.379 GMT

By Brian Lysaght March 10 (Bloomberg) -- Rolls-Royce rises as much as 3.7%, on vol. 47% of 3-mo daily avg. Daimler said March 7 aftermkt it plans to sell Tognum JV stake valued at GBP1.9b to Rolls-Royce. * Investec (buy on Rolls) says stake will be est. 7% accretive to Rolls-Royce 2015 EPS * Notes Rolls has ample liquidity to buy stake; deal makes Rolls equity raising to fund purchase of another industrial such as Waertsilae “more unlikely:” Investec * Waertsilae falls as much as 5.4%, currently down 1.6%; mkt cap EU7.95b * Rolls-Royce said Jan. 9 Waertsilae takeover talks ended

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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 editors responsible for this story: James Ludden at +44-20-7673-2645 or jludden@bloomberg.net Gaurav Panchal

LePoint.fr : Affiare Sarkozy : le juge Azibert a tenté de se suicider

le juge Azibert a tenté de se suicider
Le Point.fr - Publié le 10/03/2014 à 10:07 - Modifié le 10/03/2014 à 10:23
Mis en cause dans l'affaire des écoutes téléphoniques de Nicolas Sarkozy, Gilbert Azibert a tenté de mettre fin à ses jours à Bordeaux.

Dimanche soir, Gilbert Azibert, le magistrat "mis en cause" par les écoutes des conversations entre Nicolas Sarkozy et son avocat Thierry Herzog, a tenté de mettre fin à ses jours. Il a prévenu sa femme qu'il ne saurait supporter les accusations qui pesaient contre lui. Les pompiers de Bordeaux, où il réside, ont été appelés en urgence et l'avocat général auprès de la Cour de cassation a été transporté dans un hôpital de la ville.

Aucun détail n'a encore filtré sur son état de santé.

Renvoi d'ascenseur ?

Gilbert Azibert était en fin de carrière et devait faire valoir ses droits à la retraite en février 2015. Sa carrière a été exemplaire. Il est officier de la Légion d'honneur et des Palmes académiques et commandeur dans l'ordre du Mérite. Mais le coup de tonnerre des révélations du Monde vendredi, a changé la donne. Car dans les enregistrements des conversations entre Thierry Herzog et Nicolas Sarkozy, les deux hommes évoquent Azibert comme celui qui leur permet de savoir ce qui se passe dans la haute juridiction. Celle-ci doit en effet statuer sur la saisie des agendas de Nicolas Sarkozy.

Pire, Me Herzog évoque selon Le Monde la possibilité d'un "renvoi d'ascenseur", Gilbert Azibert souhaitant obtenir un poste à Monaco.

La Principauté a immédiatement démenti avoir subi la moindre pression. Selon un communiqué, "Gilbert Azibert a été candidat à un poste de magistrat à la Cour de révision, équivalent à Monaco de la Cour de cassation". Mais à l'issue du processus de recrutement, "sa candidature n'a pas été retenue". '"Aucune intervention extérieure n'est venue interférer dans cette procédure de recrutement", soulignait le communiqué.

(NYPost) Advertising profits begin to turn around --> +ve Publicis

--> +ve for the all sector, still like Publicis
For the past decade, media companies have been stung by a combination of an economic slowdown and a problem demonstrating growth in advertising revenue. But a change is in the air.
In fact, Janney Capital industry analyst Tony Wible is telling investors that the long-problematic media advertising picture is definitely looking up.
“Advertisers and media agencies are optimistic we will see higher ad budgets, reaching their highest point since the fall of 2006,” Wible points out, citing data from the Perception Group’s Advertising Optimism Index.
Television reigns supreme in discussions about ad spending, thanks to an improving economic picture and big events in sports and entertainment.
“This is a really strong advertising marketplace for television,” Brad Adgate, research director for Horizon Media, says. “We just had the most expensive Super Bowl ever, with $4 million for a 30-second spot. NBC reportedly sold a billion dollars in ads during the Olympics, and the Oscars had ads going for $1.8 million for 30 seconds.”
“Interestingly, marketers themselves are more optimistic than their agency counterparts on traditional [print] media and broadcast TV … which could imply that the demand for these media may be stronger than expected.”

(NYPost) Banking isn’t a wonderful life now as suicides sweep financial district

Banking isn’t a wonderful life now as suicides sweep financial district

In the last two months, there has been a rash of suicides and mysterious deaths sweeping the world of high finance.
JPMorgan has been hardest hit, with three untimely deaths in just the last few weeks, and last week Autumn Radtke (left), a 28-year-old CEO of First Meta, a small cyber-currency exchange, jumped to her death in Singapore.
Historically, suicide rates rise during times of financial stress and economic downturns. Now, though stocks are at or near all-time highs, for many Wall Street bankers these are times of setbacks and stress.
Today’s bankers are not a settled, comfortable bunch anymore. A day doesn’t go by where you don’t hear about more bank layoffs and branch closings.
Under Jamie Dimon’s leadership, JPMorgan has announced 17,000 job cuts through the end of this year, and that’s on top of all the cuts from the 2008-09 crisis.
If you’re a banker today, many who once looked up to you as a success now think you’re evil; maybe you’re even the type who caused the economy to crumble.
On top of that, you hear politicians from the president on down blaming “Wall Street and bankers” for the crisis, as if they were all the same, when in reality it was only five or six individuals very high up at places like Bear Stearns and Lehman Bros. who share responsibility.
Financially, many of today’s bankers, if not on unemployment, are making far less — as much as half or one-third less — than they did just four or five years ago. And that’s not easy for anyone, especially when you have a mortgage of your own, a family and a car or two.
For example, overall average compensation at JPMorgan was $122,653 in 2013. That amount is nothing to sneeze at, but it is still a lot less than the bankers were making before — often for a 60-to 80-hour work week.
When we lose a person like Autumn Radtke — who worked for Apple and directly for Richard Branson and became CEO of her own startup — from a 25-story apartment building because she can’t see the worth of living, the world loses.
And today many Wall Street bankers are in the midst of their own emotional and economic crises.

(NYT) : Carl C. Icahn is liking Facebook a bit more these days.

Carl C. Icahn is liking Facebook a bit more these days.

The billionaire investor disclosed in a regulatory filing on Friday that he plans to start using the social network as another platform for his activism campaigns.

The septuagenarian, who has made shaking up technology companies his latest focus, set up his page on Valentine’s Day. Describing himself, he wrote: “Some people get rich studying artificial intelligence. Me, I make money studying natural stupidity.”

Facebook will supplement his already popular Twitter feed, where 154,858 followers have been tracking his almost daily barbs against eBay‘s board, and his Shareholders Square Table website.

Mr. Icahn’s disclosure was made to ensure that he complied with guidelines from the Securities and Exchange Commission about using social media. The agency clarified last year that companies may use their Facebook pages, Twitter feeds and corporate blogs to publish news. They just need to let investors know which channels that information will appear on first.

Plenty of people have already gotten the word about Mr. Icahn’s new Facebook presence. As of Friday afternoon, 3,542 people had liked his page.

(Challenges) Bouygues Telecom and Free seal a historic agreement

Bouygues Telecom and Free seal a historic agreement
Translation {http://bit.ly/1kH04kt}

Iliad confirmed on Sunday it had signed an agreement of exclusive negotiations with Bouygues and should cede its network of 15,000 branches. The amount of the transaction is estimated at € 1.8 billion.

"We have entered into exclusive negotiations to yield to Free for an amount up to 1.8 billion euros go our entire mobile network," announced Olivier Roussat, CEO of Bouygues Telecom in an interview with Journal du Dimanche .

This agreement, which covers "15,000 antennas and a portfolio of frequencies, some of which for 4G" is conditioned to the fact that SFR Bouygues acquires sold by Vivendi.

Vivendi, parent company of SFR, which seeks to separate its telecom subsidiary to focus on the media said Wednesday it has received offers from Bouygues and Numericable taking majority control.

The offer was unveiled by Bouygues favors including the Stock Exchange, but seemed to be a problem with the rules of competition.

No capital increase to fund such redemption

Free account fund the redemption frequency and network Bouygues "with own resources and banking group, without recourse to a capital increase," the Iliad in a statement.

This assignment is an "extension of the proposed merger of Bouygues Telecom and SFR" made Vivendi, parent company of Free, and "aims to keep France a strong infrastructure competition," said Bouygues in a statement.

"I welcome the agreement to submit to the Competition Authority a proposed merger between SFR and Bouygues Telecom now include measures ensuring a strong infrastructure competition on the French market for mobile telephony," he commented Meanwhile Martin Bouygues, CEO of Bouygues in this commmuniqué.

"Maintaining a dynamic market for consumers"

The agreement with Free "enables Bouygues Telecom to present ab initio the Competition Authority measures to maintain a dynamic market to benefit consumers," said Bouygues.

In fact, the President of the Competition Authority, Bruno Lasserre, told the newspaper Les Echos that the sale of network Bouygues Telecom Free could "facilitate" the file review.

"Without mitigate the fierce competition on the French market, the agreement, as the merger Bouygues Telecom SFR, would return to the area of mobile telephony a balance to boost employment, achieve the desired investment by government and develop the quality of service and innovation for the benefit of consumers, "still considers the Bouygues group.

Free and become an operator "full and complete"

This agreement enables Bouygues "raise the main uncertainty from (its) project under the Competition Authority. And Free to become a full and complete operator," says Olivier Roussat in this interview to JDD.

It remains for the moment "conditioned the success of our proposed merger with SFR filed Wednesday, March 5 from its parent company, Vivendi," he says.

"We provide an immediate response to the imperatives of competition. In case of merger with SFR, we would have a network too. Again, there is a buyer who will recreate a competitive dynamic. This turnkey solution should facilitate the marriage SFR and Vivendi reassuring, "he says again.

Bouygues Telecom network will not be "destroyed"

The Competition Authority will review the file and if all goes well, migration and network subscribers could take place "in 2015," plan to ensure that the agreement "also ensures employment of the entire telecom sector in France with maintaining three networks. "

"Free wishes to maintain the network with its own agents, warns CEO of Bouygues Telecom. And we want to keep our 1,200 employees are affected. Our network will not be destroyed. Instead, Free will live 15,000 antennas that will become the his own. "

Olivier Roussat also confirmed that his "proposed merger with SFR not cause any departure." Instead, the merger will invest in the Internet and mobile networks and "create jobs. This is the sinews of war."

The merger agreement and fully rebattrait cards in the field of French mobile telephony share four players.

Bouygues boasts of having "the best 4G network"

Orange leader today has 27 million mobile customers, SFR has 21 million, 11 million Bouygues Telecom and Free 7400000.

However a Free relay network underdeveloped and relies on a 3G roaming agreement with Orange , but not for 4G. However Bouygues boasts of having the best 4G network via authorization which allowed him to use this technology on a frequency band that already operated giving him an edge in terms of coverage.

This agreement should enable Bouygues and Free "to reduce costs," according to Olivier Roussat which ensures that the price war being waged by the mobile operators, at the initiative of Free, and more recently in the internet the initiative this time Bouygues should continue.

Raymond James : New major twist in French consolidation - Bouygues taking the le

New major twist in French consolidation - Bouygues taking the lead The probability of a Bouygues/SFR transaction has gone up significantly over the weekend. On Friday, we were still arguing that our 6-month old scenario of Vivendi selling SFR to Numericable was most likely. However, the weekend brought two major twists, impacting our view:
o 1/ The French Government has publicly and firmly taken position, raising pressure on the antitrust body. French Minister Arnaud Montebourg made clear on Sunday (interview in Le Parisien) that he supports a stabilisation of the competitive intensity by moving back to three mobile players – i.e. a support for Bouygues' proposition to merge with SFR.
o 2/ The announced network deal between Bouygues and Iliad reassures the antitrust authority that the market can stay competitive – Iliad will be able to compete on a level playing field. Bouygues and Iliad have announced that they are in negotiations for the sale to Free Mobile of Bouygues' mobile infrastructure for €1.8bn, as long as the competition authorities validate the merger of SFR and Bouygues Telecom. Mr Lassere (Head of Competition Authority) is in a much better position to accept a Bouygues-SFR merger, should Vivendi want it. Bouygues’ offer is taking the lead in our opinion since: 1/ Bouygues’ proposition offers more value to Vivendi than Numericable does, thanks to higher synergies (RJEEe: NPV of synergies of €10bn vs €5-6bn), 2/ it is supported by the French Government, 3/ With Iliad potentially holding a state-of-the-art network, this is a guarantee for the regulator that the market will stay competitive; and 4/ regulation has achieved its goal, with significant market re-pricing in the past two years. If this scenario goes through: Vivendi is the winner; Bouygues, Iliad and Orange are secondary gainers.
o Vivendi: SFR is valued at up to €19bn including 46% of synergies (€10bn) – this is well above our €15bn valuation, or a gap of €3.8/share. In addition, Vivendi would become a positive net cash company with the €10bn proceeds and still hold a 46% stake of the newco.
o Bouygues: a great game-shifting move; however, Bouygues’ share of synergies are somewhat offset by the multiple paid for SFR. Bouygues will hold a 49% stake in a company worth up to €25bn assuming a 5.8x EBITDA multiple and 100% of opex synergies (€19bn without), for a cost of €10bn.
o Iliad: a transaction cost of €31/share to own a full network, partially offset by better long-term margins. We calculate a 2.5x net debt/EBITDA ratio post-transaction, which limits the need for a rights issue.
o Orange: the negative impact of losing €700m EBITDA from Iliad in 2016 (end of roaming agreement) was already expected. Better market dynamics could help a mobile re-rating through revenue and margins. What could go wrong now? 1/ Numericable offers more cash and above-average multiples for Bouygues Telecom; while Numericable can beat Bouygues on cash, we doubt that it could match the gap in potential synergies. 2/ Vivendi accepts Bouygues’ proposition but the antitrust authority goes against; still possible since the new entity would hold more than 45% market share.

FT : Spotify’s $200m credit line hints at IPO

Spotify has secured a $200m credit facility from lenders including Morgan Stanley, bringing the Swedish music company a step closer to a potential initial public offering in the US, according to people close to the deal.
The Stockholm start-up, which last year sold equity that implied a valuation of $4bn, has long refused to comment on speculation that it is preparing for a multibillion-dollar IPO.

But the lossmaking company’s move to secure a large credit facility – and the banks’ willingness to provide one – will be widely interpreted as a sign that it is preparing to go public.
Investment banks have tripped over themselves to provide credit facilities to fast-growing companies in the hope of winning an underwriting role when the company floats.
Twitter, Facebook and Zynga all received financing packages ahead of their IPOs.
Large banks tend to avoid lending to start-ups, which, unlike traditional corporate borrowers, lack a long financial record, therefore forcing the banks to hold more capital in reserve to cover potential loan losses.
Spotify’s credit facility for about $200m was arranged at the end of last year by Morgan Stanley, Credit Suisse, Deutsche Bank and Goldman Sachs, according to people familiar with the matter.
It has yet to draw upon the credit line, one person added.
The banks and the company declined to comment.
Goldman Sachs is also an investor in the company. Other prominent shareholders include Daniel Ek, the founder and chief executive, and Hong Kong billionaire Li Ka-shing.
With more than 6m paying subscribers, Spotify is the leading company in the fast-growing world of online music streaming. Its competitors include Deezer, Rhapsody and, as of this year, Beats Music, a service from the backers of headphones maker Beats by Dre.
Spotify last week caused a stir in the music industry with the acquisition of The Echo Nest, a technology company that powers the music recommendations of many of its rivals. The deal provides technology that will help Spotify battle online radio specialists such as Pandora and Apple’s iTunes Radio.
The company charges up to $10, €10 or £10 a month for unlimited access to a library of more than 20m songs. To attract new users, it also offers a restricted version of its service for free.
Spotify’s revenues more than doubled to €435m in 2012, according to its latest financial statements. But the company’s losses widened to €59m, as it had to pay out the bulk of its revenues to record labels and music publishers.

FT : Klarman warns of impending asset price bubble

One of the world’s most respected investors has raised the alarm over a looming asset price bubble, calling out “nosebleed valuations” in technology shares like Netflix and Tesla Motors and warning of the potential for a brutal correction across financial markets.
Seth Klarman, the publicity shy head of the $27bn Baupost Group whose investment opinions have attracted a near cult-like following, said that investors were underplaying risk and were not prepared for an end to central banks reversing a five-year experiment in ultra-loose money.

While noting that he could not predict exactly when a significant market correction would occur, Mr Klarman wrote in a private letter to clients: “When the markets reverse, everything investors thought they knew will be turned upside down and inside out. ‘Buy the dips’ will be replaced with ‘what was I thinking?’ . . .  Anyone who is poorly positioned and ill-prepared will find there’s a long way to fall. Few, if any, will escape unscathed.
Baupost, which is closed to new investment, returned $4bn to clients last year.
The warning by Mr Klarman, who has won a devoted audience for his highly cautious, value-driven approach, and whose out-of-print book on investment sells second-hand for as much as $2,900 on Amazon, comes after US shares surged by almost a third last year. Many well known technology companies, such as Facebook, more than doubled.
“Any year in which the S&P 500 jumps 32 per cent and the Nasdaq 40 per cent while corporate earnings barely increase should be a cause for concern, not for further exuberance,” Mr Klarman wrote.
“On almost any metric, the US equity market is historically quite expensive. A sceptic would have to be blind not to see bubbles inflating in junk bond issuance, credit quality, and yields, not to mention the nosebleed stock market valuations of fashionable companies like Netflix and Tesla Motors,” he wrote. The Baupost Group declined to comment.
Since central banks slashed interest rates to record lows and began a policy of buying up government bonds after the 2008 market crash, the S&P 500 has rallied by more than 150 per cent to new all-time highs. Bond yields have fallen sharply and many other assets, from fine art to property in Singapore and London, have leapt in value.
Mr Klarman is exceptional among hedge fund managers for often holding the bulk of his portfolio in cash, yet still generating annualised returns of 18 per cent since 1983 using often highly concentrated investments.
The Boston-based investor was recently ranked as the fourth best performing hedge fund manager of all time for generating $21.5bn in returns over its history, coming behind George Soros, Ray Dalio and John Paulson.