TheChek News Flow

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Morrisons, which is 9.5 percent owned by the founding family, has contacted buyout firms to guage their interest in taking the business private after a fall in Christmas sales.

Cash-rich private equity firms are keen to do new buyouts after low levels of M&A activity in 2013, although the large size of this deal may mean that they have to work together, bankers said.

"The size of the transaction, which could get as high as 10 billion pounds, could require a number of private equity players to team up, given the size of the equity cheque needed," a senior leveraged loan banker said.

Morrisons declined to comment.

Bradford-based Morrisons, which is the UK's fourth-largest supermarket operator, was founded in 1899 and listed on the London Stock Exchange in 1967.

Morrisons, which has lucrative property assets, has already been considered as a takeover target by CVC, which studied a potential bid in 2007.

Morrisons' shareholders and retail analysts are doubtful that a take-private deal will happen but bankers and sponsors have been in talks for more than a month to see if the financing is theoretically possible, a second banker said.

A debt package of around 5 billion pounds would be one of the largest buyout financings since the financial crisis. A financing would be a mix of loans and high-yield bonds in sterling, dollars and euros to maximise liquidity, two bankers said.

The loan component is expected to have an 'opco-propco' structure which is commonly used on loans for companies with property assets. Property company debt is serviced with rent payments from an operating company, they added. ($1 = 0.5989 British pounds)

Details :

BG Group PLC Energy consortium in talks to sell Israel gas to Egypt - press

- BP Group is holding discussions with Delek Group Ltd. and Noble Energy

- Up to 8Bcm of gas from the Leviathan field could be exported to BG's LNG facility in northern Egypt

Filings, Offerings and Pricings

Filings:

Offerings:

In reaction to strong earnings/guidance: UCTT +21.4% (also discloses that COO will resign, effective on or about March 10, 2014), CG +11.4%, ZBRA +8.6%, GRMN +7.7%, COLM +7.1%, NOR +6.9%, ORIG +5.5%, HL +5.3% (also reports record silver and gold reserves: Silver reserves increase by 13% and gold reserves by 190% over 12/31/12), HSTM +4.6% (light volume), LL +4.2%, CF +3.9%, NBR +2.6%, SAVE +1.6%, ADI +1.5% (also increases quarterly cash dividend 9% to $0.37 per share from $0.34 per share and increases share buyback authorization to $1 bln), HLF +1.5%, SAH +1.4% (light volume), MGM +1.1%, HST +0.7% (light volume), DRYS +0.5%.

M&A news: ZLC +40.2% and SIG +18.4% (Zale and Signet Jewelers confirm agreement for Signet to acquire all of the issued and outstanding stock of Zale for $21.00 per share in cash consideration).

Other news: CHTP +37.4% ( confirms FDA accelerated approval of NORTHERA (droxidopa) for the treatment of symptomatic NOH), CRDS +11.6% ( files patent infringement suits against Cisco, NetApp, and Quantum), CAK +7.5% (announces FPSO Contract for Production Operations Offshore Nigeria), LLY +2.5% (announces Ramucirumab Phase III Lung cancer trial meets primary endpoint of overall survival), USU +1.9% (late spike on DoE approval of nuclear backing; disclosed details with amendment to Doe cooperative agreement - provides funding for a cost-share RD&D program ), URRE +1.4% (late spike on DoE approval of nuclear backing), ISIS +1.2% (still checking), GG +1.1% (announces extension of date to acquire common shares of Osisko Mining Corporation), MDBX +0.7% (modestly rebounding following exec comments on CNBC), JOSB +0.7% ( announces commencement of tender offer to repurchase up to $300 mln in value of shares of its common stock at price of $65.00 per share), RDS.A +0.2% ( sold some downstream assets to Abu Dhabi Investment Council and others for ~$2.4 bln, according to reports).

Analyst comments: ACT +2.9% (upgraded to Buy from Neutral at Goldman; tgt to $235 from $200 at BofA/Merrill; Barron's profiles positive view), G +2.5% (upgraded to Buy from Neutral at Citigroup), URI +1% (initiated with a Buy at Stifel), GOGO +1% (upgraded to Overweight from Equal Weight at Evercore ), M +0.7% (initiated with a Buy at Citigroup; tgt $63)

In reaction to disappointing earnings/guidance: SM -10.7%, LZB -9.3%, MFRM -8.6%, CYH -6.3%, ZIXI -4.7%, (light volume), TEX -4.4%, KAR -3.9%, PBPB -3.6%, SUNE -3.2%, AUY -3.1%, PNRA -1.4%.

Select metals/mining stocks trading lower: GFI -2.4%, EGO -1.2%, GDX -1%, BBL -0.8%, NEM -0.8%.

Brazil names lower: PBR -1.6%, GFA -1.6%, EBR -1.5%, BBD -1.4%, BBVA -1.3%, RIO -0.7%,

Select solar names showing modest weakness following SUNE results: SOL -2.2%, FSLR -1.3% .

Other news: GNK -8.3% ( did not make the scheduled semi-annual interest payment of ~$3.1 mln, as reported in an 8-K. However, under the terms of the Indenture, a failure to pay interest on the Payment Date does not constitute an Event of Default unless such failure continues for a period of 30 days), TS -4.7% ( attributed to reports that S Korea did not impose anti-dumping duties on energy pipe products ), MTL -4.3% (may be attributed to steel tariffs news), OAKS -3.7% (announces 3 mln share common stock offering), ENDP -3.7% ( plans to record a ~$495 mln charge primarily related to goodwill attributable to the co's acquisition of American Medical Systems), PRAN -3% (following conference call to discuss results from REACH2HD trial), CMI -2.9% (following TEX results; also may be attributed to reports that Obama administration targets trucking pollution with potential new fuel economy standards by March 2015 for heavy-duty trucks), TSEM -2.6% (still checking), X -2.4% (reports of anti-dumping tariffs on steel tubing), KMP -1.7% (Kinder Morgan Partners is commencing underwritten public offering of 6.9 mln common units representing limited partner interests ), NFLX -0.9% (WSJ discusses ongoing disagreements between NFLX and Verizon over internet speed), NVS -0.7% (Novartis AG office in Tokyo has been raised by officials over manipulated data allegations, according to reports).

Analyst comments: YOKU -2.5% (downgraded to Sell from Hold at Maxim Group), SCTY -2% (downgraded to Neutral from Outperform at Robert W. Baird), CPN -1.2% (Calpine downgraded to Neutral from Buy at UBS), SM -1.2% (SM Energy downgraded to Hold from Buy at KeyBanc), TSLA -0.5% ( initiated with a Mkt Perform at FBR Capital; tgt $150),

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