Lenovo seeking $1.5 bln loan -- could be used for BBRY acquisition, according to reports out (sources citing China paper)
BBRY US +1% pre market only 75k shares traded
Fiat S.p.A Reports Q3 Net €189M v €265Me, Trading profit €816M v €915Me, Rev €20.7B v €20.9B y/y - Lowers FY13 guidance to Net profit €0.9-1.2B, Trading profit €3.5-3.8B, Rev €88B(prior Net profit €1.2-1.5B, Trading profit €4.0-4.5B, Rev €88-92B)
*U.S. SEPTEMBER CONSUMER PRICES RISE 0.2%; CORE RATE UP 0.1%
Gapping down
In reaction to disappointing earnings/guidance: WU -19.4%, CETV -18.2%, INVN -14.1%, IACI -13.6%, CYNI -12.2%, SODA -11.7%, SFLY -10.8%, YELP -8.9%, ( files mixed shelf offering; Specific terms of these offerings and securities will be provided in one or more supplements to this prospectus), QCOR -8.5%, PRXL -7.5%, RBCN -7.4%, HES -6%, (light volume), CALX -5.6%, (light volume), WBMD -5%, AUDC -4.8%, (light volume), XCO -4.4%, CAP -4.1%, (light volume), LNKD -3.7%, AFL -3%, (light volume), HTS -2.7% (light volume), MX -2.2%, CRUS -2.1%, GNW -1.9%, FLEX -1.7%, RYL -1.3%, DLR -1.3% (Digital Realty downgraded to Market Perform from Outperform at Raymond James, downgraded to Equal Weight from Overweight at Evercore), EXXI -0.9% (light volume), SO -0.5%.
Other news: MACK -17.2% (announces results from A Phase 2 Study Of MM-121 (SAR256212) in combination with Paclitaxel; MM-121 misses primary endpoint; ongoing biomarker analysis identifies a potential subpopulation of patients benefiting from MM-121 in combination with paclitaxel), AMRN -15.8% ( discloses FDA has rescinded the ANCHOR study special protocol assessment agreement, downgraded to Mkt Perform from Outperform at Leerink Swann ), PERI -14.8% (following IACI results), MTGE -5.9% (still checking), USU -3.2% (following late spike on DoE update), TEVA -2.7% (announces departure of President and CEO), MZOR -1.7% (price 2.4 mln ADSs at $17.00 per ADS), GRPN -1% (following YELP results), HCA -0.7% (announces 30 mln share sponsor secondary offering and concurrent company $500 mln share repurchase from sponsors).
Analyst comments: EW -4.1% (downgraded to Underweight from Neutral at JPMorgan ), CHKR -3.6% (downgraded to Sell from Neutral at Goldman), X -1.1% (downgraded to Hold from Buy at Deutsche Bank), UBS -0.4% (UBS downgraded to Neutral from Buy at BofA/Merrill)
Gapping up
In reaction to strong earnings/guidance: RPXC +9.6% (light volume), BWLD +8.9%, DWA +8.7%, BBSI +8.4% (light volume), LOCK +7.5%, TRLA +7.1%, UMC +5.8%, (light volume), EA +5.7%, BIDU +5.5%, SAVE +4.5%, LUX +4.4%, (light volume), IPHI +3.3%, BCS +3.3%, GM +2.7%, SNY +2.6%, GPRE +2.4%, (light volume), GLW +2.2%, QGEN +2.2%, TTWO +1.9%, ROG +1.7% (light volume), STO +1.2%, GILD +1.1%, ULTI +1.1%, (light volume), LVLT +1.1%, (light volume), CBI +1%, (light volume), S +1%, CMCSA +0.8%, DLB +0.6%, (light volume), AMP +0.6% (light volume), SM +0.6%.
M&A news: PXD +0.9% (Bloomberg discusses that PXD may be a possible takeover target by Chevron (CVX) -- article out yesterday afternoon).
Metals/mining stocks trading higher: SLW +1.9%, SLV +1.4%, MT +1.1%, GOLD +1%, GDX +0.9%, GLD +0.5%, .
Select oil/gas related names showing strength: e +2.6%, BP +2% (BP upgraded to Buy from Hold at Societe Generale), RDS.A +1.2% (following STO results), .
China internet names gapping up on BIDU results: QIHU +3.8%, DANG +2.2%, SINA +2.2%, YY +0.9%, SOHU +0.6%
Solar names trading higher: SOL +4.8%, JKS +4%, TSL +4%, YGE +3.9%, ASTI +3.3% (secures $10 million registered direct financing with Ironridge Technology), CSIQ +1.5%, SPWR +1.1%, FSLR +0.4%
Other news: MNKD +4.4% (announces FDA Acknowledgement of Resubmission of New Drug Application for AFREZZA), VOLC +3.6% (announces new two-year results of largest prospective study of use of IVUS in stent placement), NQ +3.5% (checking for anything new),ARIA +3.2% (Sarissa Capital Management filed 13D), WPRT +2.8% (Westport Announces Purchase Order for 900 Westport iCE pack LNG Tank Systems), ARMH +2.5% (still checking), SYMC +2.4% (higher after CEO disclosed 100K share purchase on 10/28 at $22.0578/share), JMP +1.5% (increases quarterly dividend by 14% to $0.04 per share from $0.035 per share), TSLA +1.4% (Tesla Motors and Panasonic (PCRFY) reach agreement to expand supply of automotive grade battery cells), BBRY +1.2% (after BBRY lifted yesterday on reports of prior talks with FB), NYNY +0.9% (after 29% move higher yesterday), MDLZ +0.4% (attributed to renewed push from Nelson Peltz ), F +0.2% (following GM earnings).
Analyst comments: NVAX +3.8% (initiated with a Outperform at FBR Capital; tgt $11), NKE +1.7% (upgraded to Overweight from Equal Weight at Morgan Stanley), FB +1.2% (Facebook upgraded to Buy from Neutral at BTIG), NOK +1.2% ( upgraded to Buy from Sell at Danske Bank)
Early premarket gappers
Gapping up: RPXC +9.6%, BWLD +8.9%, DWA +8.7%, BBSI +8.4%, LOCK +7.5%, DANG +5.6%, BIDU +5.5%, MNKD +4.4%, VOLC +3.6%, NQ +3.5%, ASTI +3.3%, IPHI +3.3%, BCS +3.3%, ARIA +3.2%, EA +2.8%, QIHU +2.6%, SYMC +2.4%, GPRE +2.4%, BP +2.2%, TTWO +1.9%, ROG +1.7%, JMP +1.5%, CSIQ +1.5%, SINA +1.4%, TSLA +1.4%, RDS.A +1.2%, GILD +1.1%, ULTI +1.1%, STO +1%, CBI +1%, YY +0.9%
Gapping down: MACK -17.2%, CETV -16.4%, AMRN -15.8%, PERI -14.8%, WU -14.2%, INVN -14.1%, IACI -13.6%, CYNI -12.2%, SFLY -10.8%, YELP -8.9%, QCOR -8.5%, PRXL -7.5%, RBCN -7.4%, CALX -5.6%, WBMD -5%, XCO -4.4%, CAP -4.1%, LNKD -3.7%, TEVA -2.7%, HTS -2.7%, MX -2.2%, CRUS -2.1%, GNW -1.9%, MZOR -1.7%, FLEX -1.7%, AFL -1.6%, RYL -1.3%, GRPN -1%, EXXI -0.9%
Conversation with Sonaecom IR – 30 October 2013
* Offer background: Sonaecom became the owner of a direct interest of ~37.5m (~7.3%) shares in Zon Optimus (ZONOP PL) as a result of a merger of Optimus SGPS and Zon Multimedia.
* Offer terms: ZONOP shares of ~37.5m will be distributed to Sonaecom shareholders. > If acceptance into the offer is ~86% of Sonaecom share capital every accepting shareholders will receive ZONOP shares [in this case the maximum number of ZONOP shares received would be 0.48228346 and zero cash] > However, if the acceptance exceeds ~86% level, the shares will be pro-rated and a cash element will be included. > Sonaecom IR said that the company has adequate cash to meet the offer consideration.
* Conditions to the offer > Approval of CVM - The IR does not expect any hurdles > Sonaecom shareholder approval - The IR explained that the resolution is to get approval from Sonaecom shareholders to allow Sonaecom to increase the holding of its own shares post offer. - Majority required is 50.001% of the share capital present at the meeting – But the IR said would need to check this. o Sonaecom’s major shareholder, Sonae SGPS SA (holds ~74%), is likely to be allowed to vote at the EGM, o But the IR said that she would need to check this again.
* Next update: The IR said more update on the EGM and other matters relating to the offer will be released by end of this week.
* Offer timeline: As per the IR the offer will close with settlement by end 2013 or early January 2014. > The IR insisted that the most likely deal close will by end 2013.
* Offer price: The IR thinks the offer price is fair and reasonable. > Also, the IR is of the view that acceptance into the offer is likely to be high.
Comment:
The value of offer consideration is fixed at €2.45 a share. Depending on the total level of acceptance into the offer, the number of ZONOP shares received by SNC minority shareholder will vary. > Assuming all the minority shareholders accept into the offer, we estimate (at current ZONOP price of €5.18) that offer terms would be 1 SNC PL = 0.42370 ZONOP PL + €0.2569 (will vary depending on ZONOP share price). - At current price level, we estimate a spread of ~0.65% (~4.0% pa) assuming settlement by end Dec 13. We believe this is bit tight for a position in SNC.
Chrysler Group Q3 adj. operting profit +22%; net rev +13.5%
Chrysler Group LLC net income for the third quarter of 2013 was $464 million, an increase of 22 percent from $381 million a year ago. Net revenue for the third quarter was $17.6 billion, up 13.5 percent from a year ago. Worldwide vehicle shipments were 593,000 for the quarter, up 6 percent from 559,000 a year ago. Worldwide vehicle sales for the third quarter were 603,000, up 8 percent from a year ago, driven primarily by a 16 percent increase in U.S. retail sales U.S. market share was 11.2 percent for the third quarter, compared with 11.3 percent a year ago; Chrysler Group market share was 14.3 percent in Canada, the same as a year ago Full-year 2013 guidance is confirmed.
The existence of local content rules in Brazil creates a risk of delay to the start of oil production in Libra, the giant fields auctioned last week that has Petrobras, Shell, Total and Chinese CNPC and CNOOC as partners. This is just one of the risks of Libra mapped by EY consulting on a new study about the outcome of the auction.
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MORE: Erste CEO Sees M&A Action After ECB Review 2013-10-30 09:52:40.721 GMT
By Boris Groendahl Oct. 30 (Bloomberg) -- Co. isn’t looking at purchases except for Croatia’s HPB now, CEO Andreas Treichl tells analysts in conference call. * Sees “substantial action” at end-2014 if ECB’s review is “really serious exercise” * Says “we want to be prepared for that” * NOTE: Croatian govt. to pick winner of HPB stake sale by yr- end, deputy PM said Oct. 10 * Earlier: Erste CEO ‘Comfortable’ With ECB Asset Review, Quality Improved * Earlier: Erste CEO ‘Feels Strong’ Going into ECB Review
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--Editor: Frank Connelly
To contact the reporter on this story: Boris Groendahl in Vienna at +43-1-513-2660-12 or bgroendahl@bloomberg.net
To contact the editor responsible for this story: Frank Connelly at +33-1-5365-5063 or fconnelly@bloomberg.net