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Cevian Lifts ThyssenKrupp Stake to Almost 15%, Handelsblatt Says 2014-01-28 06:57:14.306 GMT

By Cornelius Rahn Jan. 28 (Bloomberg) -- Cevian Capital stake now at almost 15%, up from 11% in December, Handelsblatt reports, citing unidentified people in the industry. Newspaper also reports: * Cevian seeks representation on supervisory board * ThyssenKrupp CEO Hiesinger supports Cevian’s quest * As Daimler shareholder, Cevian unsuccessfully pushed for spinoff of truck division

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To contact the reporter on this story: Cornelius Rahn in Berlin at +49-30-70010-6212 or crahn2@bloomberg.net

To contact the editor responsible for this story: Kenneth Wong at +49-30-70010-6215 or kwong11@bloomberg.net

After Hours Summary: SANM +7.1%, SIMO +4.8%, SWFT +4.6%, CHEF -17.2%, RCII -15.0%, TTS -8.3%, AAPL -7.6% following earnings/guidance

After Hours Gainers: Companies trading higher in after hours in reaction to earnings: SANM +7.1%, SIMO +4.8%, SWFT +4.6%, CVTI +1.4%, ASH +0.8%, DWCH +0.6%

Companies trading higher in after hours in reaction to news: PRXI +6.8% (announced partnership to bring King Tut exhibition to North America), CLMT +0.4% (announced asphalt supply and marketing agreement with All States Asphalt; agreement became effective on Jan 1, 2014)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings: CHEF -17.2%, RCII -15.0%, TTS -8.3%, AAPL -7.6%, CRUS -7.0%, STX -6.3%, OLN -6.1%, ZION -4.8%, RMBS -4.0%, STLD -3.6%, PACR -3.2%, PCL -2.1%, WIBC -1.8%

Companies trading lower in after hours in reaction to news: ATAX -7.3% (announced public offering of 7 mln shares representing assigned limited partnership interests of the Company), ESI -3.1% (received subpoenas and/or civil investigative demands), CNC -2.4% (announced public offering of 800k shares by selling stockholder), TXI -2.4% (seeing reports co and MLM have reached a deal for a buyout of TXI), CSTM -2.3% (filed for 37,561,475 share common stock offering by selling shareholders), XPO -2.1% (announced offering of 15 mln shares of common stock), ASTM -2.1% (entered into $15 mln equity commitment with Lincoln Park Capital; Aastrom has right to sell up to $15 mln in shares of common stock to Lincoln Park)

Asian Market Update: China industrial profits growth slows; Shibor rates rise despite another large PBoC injection in the wake of China Credit Trust rescue

***Economic Data*** - (CN) CHINA DEC INDUSTRIAL PROFITS Y/Y: 6.0% V 9.7% PRIOR; YTD: 12.2% V 13.2% PRIOR (5-month low) - (AU) AUSTRALIA DEC NAB BUSINESS CONDITIONS: +4 V -3 PRIOR; NAB BUSINESS CONFIDENCE: 6 V 5 PRIOR - (AU) AUSTRALIA NOV CONFERENCE BOARD LEADING INDEX M/M: 0.2% (3rd month of increase) V 0.5% PRIOR - (JP) JAPAN DEC CORPORATE SERVICE PRICE INDEX Y/Y: 1.3% V 1.1%E (highest since Aug 2008) - (KR) SOUTH KOREA FEB MANUFACTURING BUSINESS SURVEY: 81 V 79 PRIOR; NON-MANUFACTURING BUSINESS SURVEY: 71 V 70 PRIOR - (KR) SOUTH KOREA Q4 FOREIGN DIRECT INVESTMENT (FDI) Y/Y: -25.3% V -32.9% PRIOR - (TW) TAIWAN Q4 PRELIMINARY GDP Y/Y: 2.9% V 1.8%E; 2013 GDP Y/Y: 2.2% V 1.9%E - (TH) THAILAND DEC MANUFACTURING PRODUCTION INDEX ISIC Y/Y: -6.2% V -10.6% PRIOR

***Observations/Insights*** - Apple down over 8% in extended session on disappointing guidance and iPhone shipments; Seagate down 6% after missing Q2 estimates. - Australia NAB business conditions improve in December, hitting a 2-year high; Employment seen slightly better and price inflation remains moderate; NAB delays forecast for next RBA cut from May to late 2014, sending AUD higher following the data release. - China shadow banking sector seems to have averted a high-profile default for ICBC's China Credit Trust product after "unnamed" investor stepped in with a deal to protect the principal of the product buyers, just as analysts warned about the "moral hazard" created by perpetuating the selling of high-yield/"low-risk" products. Shanghai Composite initially strengthened before the late-morning selloff after a slowdown reported in China industrial profits growth. PBoC was in the market for the 3rd straight session, with another outsized CNY150B OMO in 14-day reverse repos, but could not keep the overnight money market rates from rising for the 6th consecutive day. - Japan focus shifts on whether a corporate tax cut will be needed to mitigate the rising sales tax in April. Ruling LDP officials said to debate the merits of lower taxes, while the more conservative Fin Min Aso calls for lawmakers to keep Japan's fiscal state in mind.

***Fixed Income/Commodities/Currencies*** - (CN) PBoC to conduct CNY150B in 14-day reverse repos (3rd consecutive injection) - (CN) Daily Shibor fixings: O/N: 4.8477% v 4.5340% prior (6th consecutive rise); 1-week: 4.9657% v 4.6890% prior - (JP) BOJ to buy ¥400B in CP outright on Jan 31st

- AUD/USD was jolted higher by improved business conditions data from NAB, rising over 60pips from session lows to as high as $0.8790. AUD/JPY was up nearly 80pips from the lows to a high of ¥90.30, while NZD/USD was up some 50pips above $0.8270 in sympathy as traders look ahead to a hawkish RBNZ policy statement (or even a rate hike) later this week. EUR/USD and USD/JPY are more contained with 20-30 pip ranges around $1.3670 and ¥102.60 respectively.

***Speakers/Political/In the Papers*** - (CN) China Ministry of Land and Resources (MLR): China shale gas production capacity to reach target of 6.5B cubic meters within two years, v 200M cubic meters in 2013 - Chinese press cites exclusive interview - (CN) Half of China's 28 provinces said to have cut investment expectations as part of economic targets for 2014 vs 2013; Only 3 have raised forecasts - Shanghai Daily - (JP) Japan LDP to begin talks on lower corporate tax next month - Japanese press - (JP) Japan Fin Min Aso: Govt must consider fiscal situation when discussing corporation tax cut - (JP) Japan Econ Min Amari: There are some concerns fx moves could raise fuel costs - financial press - (JP) Japan Automobile union Chief: To aim for rise in monthly wage - financial press - (AU) According to one survey, analysts are unanimous in expectation for RBA to leave policy rates on hold next month - SMH - (NZ) According to one survey, only 3 out of 17 analysts polled expect RBNZ to start tightening policy rates this week - NZ press - (KR) BoK Gov Kim: Global economy is recovering from financial turbulence - financial press - (KR) Bank of Korea biannual inflation report: To closely examine trends going forward regarding inflation falling below target band - (KR) Bank of Korea (BOK): Local banks' average lending rates on new household loans in Dec rose by 0.02pts to 4.52%; second consecutive month of increase - Korean press - (UR) Ukraine Pres Yanukovych and opposition agree to repeal some of the anti-protest laws

***Equities*** Market Snapshot (as of 04:30 GMT): - Nikkei225 +0.2%, S&P/ASX -1.1%, Kospi +0.2%, Shanghai Composite +0.1%, Hang Seng %, Mar S&P500 +0.3% at 1,780, Apr gold -0.5% at $1,257, Mar crude oil +0.1% at $95.82/brl

US markets: - SANM: Reports Q1 $0.41 adj v $0.38e, R$1.45B v $1.46Be; +8.1% afterhours - SWFT: Reports Q4 $0.36 v $0.35e, R$1.08B v $1.08Be; +4.6% afterhours - SMTC: Announces restructuring activity; to cut 6% of workforce (approx 90 jobs); -0.5% afterhours - X: Reports Q4 $0.27 adj v -$0.26e (unclear if comp), R$4.27B v $4.33Be; -1.2% afterhours - STX: Reports Q2 $1.32 v $1.40e, R$3.53B v $3.57Be; Guides Q3 Rev at least $3.40B v $3.45Be, gross margin "flat" q/q; -6.1% afterhours - OLN: Reports Q4 $0.31 v $0.31e, R$562.1M v $603Me; -6.1% afterhours - AAPL: Reports Q1 $14.50 v $14.04e, R$57.6B v $57.1Be; Guides Q2 Rev $42-44B v $46Be; iPhone shipments 51M v 47.8M y/y (v 56Me); -8.1% afterhours - RCII: Reports Q4 $0.25 (incl items) v $0.76e, R$769.6M v $793Me; -14.0% afterhours - CHEF: Guides FY13 $0.80-0.81 (adj) v $0.90e, R$670-673M v $677Me; -15.4% afterhours

Notable movers by sector: - Financials: Marui Group 8252.JP +2.5% (press report on 9M result); Sumitomo Corp 8053.JP +1.5% (press report on 9M result) - Materials: Metallurgical Corporation of China 1618.HK +4.6% (FY13 guidance) - Technology: Sony Corp 6758.JP -2.8% (Moody's cuts rating to junk); Digital China 861.HK -4.8% (9M guidance); SK Hynix Semiconductor 000660.KR +3.1% (Q4 results); Panasonic Corp 6752.JP +2.1% (to sell plasma panel factory) - Industrials: BYD Co Ltd 1211.HK +2.9% (China Premier Li visits Company); Yamato Holdings 9064.JP -3.1% (press report on 9M result) - Healthcare: Guilin Layn Natural Ingredients 002166.CN +10.0%, Shenzhen Neptunus Bioengineering 000078.CN +6.1%, Shandong Lukang Pharma 600789.CN +4.5%, Beijing Tiantan Biological Products 600161.CN +4.1% (over 100 cases of H7N9 infection) - Telecom: KT Corp 030200.KR +5.2% (Q4 result)

For AT&T, Waiting Is the Easiest Part

AT&T isn't about to buy Vodafone. But the company hasn't hung up on its European ambitions. The carrier said Monday it doesn't intend to make an offer for U.K.-based Vodafone. The announcement came in response to a request from U.K. regulators who asked AT&T to clarify its intentions toward Vodafone. This doesn't necessarily mean a bid is completely off the table. Even so, the U.S. carrier may have good reason to wait, if it bids at all. On one level, the reason for AT&T's response was simple. Under U.K. takeover rules, a company must respond with an announcement if regulators ask it to do so. Had AT&T said it was considering a bid, it would have had 28 days to make a formal offer. But AT&T was never anticipated to make a move until after the closure of Verizon Communications' deal to buy the rest of Verizon Wireless from Vodafone. That deal isn't expected to close until Feb. 21, provided Verizon shareholders approve it Tuesday. In other words, AT&T seemingly had no choice but to say it wasn't interested. According to U.K. takeover laws, AT&T can't bid for Vodafone for six months, except under certain conditions. These include a bid backed by Vodafone's board, which could be feasible within the six-month time frame. Getting a bid done earlier would help AT&T avoid the risk of interest rates climbing before it raises debt to finance a deal. And delaying has its advantages. Waiting six months takes AT&T beyond the European parliamentary elections in May, which is also the deadline for a package of telecom-reform measures the European Commission is considering, according to Citigroup. Holding off also likely gets AT&T past a decision by regulators over whether to allow consolidation in the German wireless market, a crucial test case for the European telecom market. If these break in AT&T's favor, it might help boost the rationale for a deal that would come with few apparent synergies. AT&T has been looking toward Europe, where networks tend to lag the U.S., as a source of growth. Vodafone is about to launch a major network upgrade project, reflecting the strategy AT&T would likely employ. But it is playing catch up with European peers, who are further ahead in building next-generation networks, says Sanford C. Bernstein. Moreover, Vodafone trades at a steep 21 times forward earnings estimates, compared with about 13 times for AT&T. At that price, investors should be grateful AT&T isn't rushing in to bid.