TheChek News Flow

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Alitalia Said to Consider More Than Doubling Capital Increase 2013-10-09 15:47:42.74 GMT

By Tommaso Ebhardt and Chiara Vasarri Oct. 9 (Bloomberg) -- Alitalia SpA is set to propose more than doubling a planned capital increase to about 250 million euros ($338 million) as part of a financing package to keep the airline afloat, people familiar with the matter said. The airline’s board may approve the new capital injection as soon as tomorrow, said the people, who asked not to be identified because talks are private. An Italian state entity may join existing shareholders, including Air France KLM Group, in the capital increase, which is part of a 450 million-euro refinancing accord, the people said. Italian Prime Minister Enrico Letta is fighting against time to save the airline after energy company Eni SpA said it will halt fuel supplies on Oct. 12 unless Alitalia shows it is able to continue operations. The government is seeking a solution for the carrier before tomorrow’s board meeting, said three people familiar with the matter. Letta met with Alitalia representatives and some of its investors and creditors this week in a bid to avert a collapse, according to four people with knowledge of the plan. The 450 million-euro injection would consist of a capital increase and about another 200 million euros provided in bank financing, according to the people, adding the plan is still under review. An official at Alitalia declined to comment.

Premiere Push

Letta is pushing for a state-controlled company to invest in Alitalia and ease a combination with Air France-KLM Group or another carrier, the people said yesterday. The government is also trying to persuade shareholders to approve a plan to raise capital to avoid a liquidity crunch and make Alitalia a more appealing partner after Air France-KLM, its biggest shareholder, has been hesitant to come to its rescue. Alitalia’s board will reconvene in Rome at 5 p.m. tomorrow, after the carrier said following a board meeting yesterday that it needed more time to define rescue measures. Alitalia is confident its “financial condition will improve Alitalia’s board on Sept. 26 approved a capital increase of least 100 million euros as its cash has dwindled following the heavier first-half net loss. The priority is to resolve the cash issue through new financing and a capital increase before combining with an international player, the people said. Air France is under pressure itself to cut costs, and its French subsidiary plans to eliminate 1,826 ground-staff jobs through voluntary employee departures to address weaker demand.

For Related News and Information: Italy Said to Seek State Funds to Ease Alitalia Combination NSN MUD2MQ6K50YE <GO> Italy May Subscribe to Alitalia Convertible Bond: Corriere NSN MUE2FM6S972L <GO> News on airlines: NI AIR BBG <GO> Top transport news: TOP TRN <GO> BI European airline index: BIAIREUT <Index> <GO>

--Editors: Benedikt Kammel, Jacqueline Simmons

To contact the reporters on this story: Tommaso Ebhardt in Milan at +39-02-8064-4231 or tebhardt@bloomberg.net; Chiara Vasarri in Rome at +39-06-4520-6325 or cvasarri@bloomberg.net

To contact the editors responsible for this story: Chad Thomas at +49-30-70010-6232 or cthomas16@bloomberg.net; Jerrold Colten at +39-02-8064-4261 or jcolten@bloomberg.net

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Telekom Austria May Pull Out of SBB Sale: Reuters Link 2013-10-09 15:23:32.713 GMT

By Caroline Schaberg Oct. 9 (Bloomberg) -- http://reut.rs/1e8IfVg

Link to Company News:{TKA AV <Equity> CN <GO>} Link to Company News:{660749Z LN <Equity> CN <GO>} Link to Company News:{KKR US <Equity> CN <GO>} Link to Company News:{1709Z LN <Equity> CN <GO>} Link to Company News:{9803717Z LX <Equity> CN <GO>}

For Related News and Information: First Word scrolling panel: {FIRST<GO>} First Word newswire: {NH BFW<GO>}

To contact the editor responsible for this story: Caroline Schaberg at +1-212-617-7379 or cschaberg1@bloomberg.net

Ariad Pharm announces changes in the clinical development program of iclusig; patient enrollment in all clinical studies of iclusig is being paused

Co announced results of its review of updated clinical data from the pivotal PACE trial of Iclusig and actions that it is taking following consultations with the FDA. With a median follow up of 24 months, serious arterial thrombosis occurred in 11.8% of Iclusig-treated patients: cardiovascular events 6.2%, cerebrovascular events 4.0% and peripheral vascular events 3.6%.

This compares to 8.0% after 11 months of follow up reflected in the current U.S. prescribing information. At 24 months, serious venous occlusion occurred in 2.9% of Iclusig-treated patients, compared to 2.2% in the current U.S. prescribing information.

The incidence rate of the arterial thrombotic events when normalized to duration of treatment exposure has not increased (10.0 events/100 patient-years in the original analysis and 9.6 events/100 patient-years in the current analysis). Non-serious and serious arterial and venous adverse events combined occurred in approximately 20% of Iclusig-treated patients.

The Company is implementing the following actions in its Iclusig clinical development program: Patient enrollment in all clinical studies of Iclusig is being paused, and subject to agreement with the FDA, will be resumed with anticipated changes in dose and other modifications. In concert with this action, the FDA placed a partial clinical hold on all new patient enrollment in clinical trials of Iclusig. Patients who are currently receiving Iclusig in clinical trials will continue on therapy. Reductions in Iclusig dose from 45 mg daily will be implemented on a trial-by-trial basis for patients whose Iclusig treatment is ongoing.

The PACE trial data demonstrate continued efficacy after dose reduction. Of 270 chronic-phase patients in the pivotal study, 190 patients dose reduced to either 30 mg or 15 mg. Of 110 (58%) patients who initially achieved a major cytogenetic response (MCyR), over 90% of these patients maintained this response after a median follow up of 19 months, despite dose reduction. Of 35 patients who achieved a MCyR and subsequently were reduced to 15 mg, all but 2 patients maintained the response.

At this time, the U.S. prescribing information for Iclusig is unchanged. Iclusig continues to be available in the U.S. to patients with resistant or intolerant chronic myeloid leukemia and Philadelphia-chromosome positive acute lymphoblastic leukemia in the commercial setting at the approved, once-daily dose of 45 mg.

YUM! Brands Inc CEO: To have a very strong bounce-back year in 2014, sees FY14 EPS up 20% or more - conf call- Outside of China, Yum is well positioned op profit targets in 2014 and beyond; YRI business is on track

Gapping up

In reaction to strong earnings/guidance: MG +12.7%, CALD +12.2%, ATEC +11.9%, ADTN +8.4% (light volume), ZEP +5.1% (light volume), AA +3%.

M&A news: MW +32.2% JOSB +12.5% (Jos. A. Bank confirms proposal to acquire Men's Wearhouse for $48 per share in cash), STP +11.8% (Suntech Power gapping up 12% on reports of potential bids), HRB +-5.7% (Republic Bancorp disclosed it is withdrawing application to merge with H&R Block).

Select financial related names showing strength: IRE +3.0%, NBG +2.9%, DB +1.9%, SAN +1.8%, BCS +1.2%, GS +0.5% (Berkshire Hathaway disclosed 2.8% passive stake in amended 13G filing out last night after the close; filed to report that it has ceased to be the beneficial owner of more than 5%) .

Select China internet stocks trading higher: YY +3.1%, DANG +2.5%, RENN +1.9%, QIHU +1.5%.

A few India related names are trading higher (India Sept Trade Balance registers its lowest deficit in 2 1/2 years): INFY +4.3%, HDB +3.2%, TTM +1.6%,

Other news: CGEN +3.7% (drug candidate demonstrates high effectiveness in Type I Diabetes Animal Model), DRYS +3.2% (still checking), JCP +3% (J. C. Penney announces Saks (SKS) Chairman/CEO Stephen Sadove to join Board of Directors), KYTH +2.8% (Kythera Biopharma prices 2,622,950 shares of common stock at $45.75 per share), VVUS +2.7% (announced Qsymia shown to reduce progression to Type 2 diabetes in high-risk overweight or obese patients), GAIN +2.2% ( increases monthly distribution 20% to $0.06 from $0.05 per share ), ORCL +1.9% (still checking), TSL +1.8% (up with STP), S +1.1% (announces consent solicitations by its subsidiaries, Clearwire Communications and Clearwire Finance, with respect to their 14.75% senior secured notes due 2016 and 8.25% exchangeable notes due 2040), AAPL +1% (Apple will have an iPad event on Oct 22, according to reports), TOT +0.9% (still checking), CCI +0.8% ( AT&T (T) is close to tower sale to CCI for $5 bln, according to reports ), AMD +0.8% (NVIDIA offers price cuts to compete with AMD, according to reports ), NSRGY +0.3% (Nestle is considering plans to sell Jenny Craig, according to reports).

Analyst comments: KORS +2.1% (upgraded to Overweight from Neutral at Piper Jaffray), XONE +0.6% ( initiated with a Buy at Janney; tgt $70)

Gapping down

In reaction to disappointing earnings/guidance: LRN -24.1%, (also downgraded to Neutral at Robert W. Baird, downgraded to Market Perform from Outperform at BMO Capital Mkts), YUM -7% (reports China same store sales for September; revises Q4 same store sales expectations), KNX -5.8%, CAS -5.5%, FAST -5%, FDO -3.1%, COST -1.3%.

M&A news: HRB -5.7% (Republic Bancorp disclosed it is withdrawing application to merge with H&R Block).

Other news: ARIA -60.1% (Ariad Pharm announces changes in the clinical development program of iclusig; patient enrollment in all clinical studies of iclusig is being paused), CYTR -16.1% (announces proposed public offering of common stock, size not disclosed), LXRX -15.1% (completes pilot study of telotristat etiprate in Ulcerative Colitis; In this pilot study of mild to moderate ulcerative colitis, telotristat etiprate achieved the primary objective of demonstrating safety and tolerability), LPTN -9.8% (provides update on plans for iSONEP option: Pfizer (PFE) seeking to divest option for a worldwide license to develop and commercialize Isonep), CGIX -4% (files form S-1 for IPO; registration amount of $46 mln ), DYAX -3.8% (announces proposed public offering of common stock; size not disclosed), TKMR -2.8% (announced the key programs and goals into 2014 for its RNAi therapeutic product pipeline; financial guidance remains the same), ICPT -2.6% (prices 1.5 mln shares of common stock by selling shareholders at $62.50 per share), ARMH -2.4% (still checking), VISN -2.4% (modestly pulling back), SWFT -1.3% (still checking), ASML -1.1% (still checking), DEO -1% (still checking), WERN -0.6% (following KNX guidance), YGE -0.5% (Yingli Green Energy responds to Energy Conversion Devices' antitrust litigation).

Analyst comments: PSUN -2.3% (downgraded to Neutral from Overweight at Piper Jaffray), CJES -2% (Cdowngraded to Market Perform from Outperform at Cowen ), RL -0.7% (downgraded to Neutral from Overweight at Piper Jaffray), HES -0.3% (downgraded to Neutral from Buy at Citigroup)

Yoox SpA Not in talks with Richemont regarding possible merger wiht Net-a-Porter - press

Men's Wearhouse Inc Jos. A Bank confirms proposal to buy company at $48/shr or $2.3B in cash (approx 36% premium to prior close) - Confirmed that it has made a non-binding proposal to acquire all of the outstanding shares of Men's Wearhouse for $48 per share in cash, representing a total equity value of approximately $2.3 billion, in a negotiated transaction. The proposal represents an approximate 42% premium to the closing price of Men's Wearhouse common stock on September 17, 2013, the day before Jos. A. Bank made the proposal to Men's Wearhouse in a telephone call and follow-up letter, which is below, from Robert N. Wildrick, Chairman of the Board of Jos. A. Bank, to Douglas S. Ewert, Chief Executive Officer of Men's Wearhouse. Men's Wearhouse has advised Jos. A. Bank that it is reviewing the proposal. - The transaction is expected to be funded by a combination of cash on Jos. A. Bank's balance sheet, new equity capital and debt financing. The new equity will be provided by Golden Gate Capital, a leading private equity firm. Goldman, Sachs & Co. has informed Jos. A. Bank that, subject to customary terms and conditions, it is highly confident that the debt financing can be obtained in the capital markets.

Ihave sent this article this week end with this impressive chart from Citi...have a look to the note attached and to the s&P Chart...page 2

Sent by bbg on the 5th of Oct :

Citi Warns US Equities Are A Cocktail of 2011, Slice Of 1998, Dash Of 2000

{http://bit.ly/1hrPuYg}

Looking at the equity market and some of the background dynamics Citi's FX Technical group cannot help but be reminded of 2011. They also warn, despite the constant hope-driven rallies this week, there are also some aspects of what we saw in 1998 and similarities with 2000 that are worth noting. The bottom line, we have had the view for some time that we would see a much deeper correction in the equity market (in excess of 20%). Recent price action and developments might (just might) be suggesting that it is time to revisit that theme.

Worth reading and having a look to the charts...

NH Hoteles (NHH SM): The company has hired JP Morgan, Deutsche Bank and UBS to seek €300 Mn through a convertible bond issue (El Confidencial).