(BFW) L’Oreal CEO Agon Says Buying Back Nestle’s Stake Is Good Idea

BFW 01/16 11:24 MORE: L’Oreal CEO Says Nestle Buyback Is Good Idea: Le Monde
BFW 01/16 10:36 L’Oreal CEO Says Buying Nestle’s Stake Is Good Idea: Monde
 BN 01/16 10:34 *L'OREAL CEO JEAN-PAUL AGON SPOKE IN INTERVIEW WITH LE MONDE
 BN 01/16 10:34 *L'OREAL CEO DECLINED TO COMMENT ON POSSIBLE NESTLE TALKS
 BN 01/16 10:33 *L'OREAL CEO SAYS STAKE BUY `WOULD BE GOOD OPERATION' FOR HLDRS
 BN 01/16 10:33 *L'OREAL CEO SAYS CO. HAS FINANCIAL RESOURCES TO BUY NESTLE STK
 BN 01/16 10:31 *L'OREAL CEO AGON SAYS STAKE BUY `WOULD BE GOOD OPERATION'
 BN 01/16 10:30 *L'OREAL CEO SAYS BUYING NESTLE'S STAKE IS GOOD IDEA: MONDE
L’Oreal CEO Agon Says Buying Back Nestle’s Stake Is Good Idea
2014-01-16 10:37:07.862 GMT


By Mark Deen
     Jan. 16 (Bloomberg) -- L’Oreal Chief Jean-Paul Agon says
that the cosmetics company has the funds available to purchase
Nestle’s stake when a shareholder agreement expires this year.
  * “If the opportunity presents itself, we have very
    significant financial resources that would make it
    possible,” Agon says
  * “It would be a good operation,” Agon says
  * Agon speaks in Le Monde interview
  * L’Oreal confirms Agon comments



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(RTR) Time Warner Cable investors would back higher Charter deal: sources

(Reuters) - A number of Time Warner Cable shareholders would support a merger with Charter Communications Inc if Charter raises its current bid for the larger rival to $41 billion or more, according to people close to the matter.

Charter on Monday formally offered to buy Time Warner Cable for $132.50 a share, or $37.3 billion, based on shares outstanding. Time Warner Cable's board swiftly rejected that bid as "grossly inadequate" and said it was open to a sale at $160 per share.

Several large shareholders, including at least two of the company's top 10 investors, would back a sale to Charter in the $145 to $150 per share range - or roughly $41 billion to $42 billion - the people said on Wednesday.

The shareholders told Charter and Time Warner Cable that they would not accept Charter's current offer, said the people close to the matter, who asked not to be identified because they were not authorized to speak to the media.

"(Time Warner Cable) has had a dialogue with the top holders. It's just a matter of price and $132.50 won't get it done," said one Time Warner Cable shareholder who asked not to be identified.

A Time Warner Cable spokeswoman said in a statement "our shareholders are confirming our position that the Charter proposal is grossly inadequate."

A Charter spokesman declined to comment.

The price Time Warner Cable shareholders would seek also depends on how much cash Charter would be willing to pay. It has offered $82.54 a share in cash and the rest in its own stock - a proposal that would give Time Warner Cable shareholders 45 percent ownership of the combined company.

Time Warner Cable has said it wants more cash and less Charter stock, and made a counterproposal - a Charter bid of $160 per share consisting of $100 per share in cash and the remainder in stock.

"Composition will count for much. A higher cash component could save Charter a few dollars in shareholders' eyes, especially given that there are uncertainties about the synergy level," said Steve Soranno, an equity analyst at Calvert Investment Management, which has $13 billion under management and owns Time Warner Cable shares.

Charter, backed by billionaire John Malone's Liberty Media Corp, estimates synergies of $500 million in the first year as a combined company with growth to $750 million over time, the company said on Tuesday.

That figure came down from those Charter first communicated to Time Warner Cable when it made its initial proposal in July.

Charter then told the larger rival that a combination would generate $650 million of synergies in the first year increasing to $1 billion over time, according to a person close to the matter.

Its chief executive, Tom Rutledge, said on an investor call on Tuesday that his $500 million-$750 million synergies estimate is conservative.

"I am very comfortable that we can deliver more than $750 million of run rate synergies over time," Rutledge said.

Analysts, however, cautioned that savings would likely fall short because getting bigger would not necessarily help the combined company receive better programming rates from media companies than Time Warner Cable already gets.

Synergies from capital spending reductions, lower annual programming costs and other cuts in operating expenses are a key consideration for Time Warner Cable shareholders, as they would end up with a large proportion of the merged company's equity under the current proposal.

Charter has been attempting to buy Time Warner Cable for six months, but talks have not progressed, prompting Charter to appeal directly to shareholders. Charter's executives were in Boston on Wednesday meeting with Time Warner Cable investors as part of a roadshow.

Since the start of Charter's pursuit, Time Warner Cable shares have gained about 40 percent. On Wednesday, shares closed above Charter's offer price, at $135.13. Charter shares have increased about 20 percent over the same period

>>> Atlas Copco AB-A Shares Buys Swedish Drilling Equipment Company, Geawelltec,

Atlas Copco AB-A Shares Buys Swedish Drilling Equipment Company, Geawelltec, no terms disclosed
- Geawelltech, which sells, rents out and manufactures well- and geotechnical drilling equipment.
- Gruv Entreprenad Anlggning Welltech System AB, based in Jonsered, Sweden, has annual revenues of about MSEK 90 (MUSD 14). Geawelltech has for many years been an Atlas Copco distributor of well- and geotechnical drilling equipment, and the majority of revenues are generated from this business. The company also manufactures drilling rigs suitable for a wide range of applications. Geawelltech has 19 employees.

>>> SPAIN DEBT AGENCY (TESORO) SELLS TOTAL €5.91B VS. €4.5-5.5B INDICATED RANGE

SPAIN DEBT AGENCY (TESORO) SELLS TOTAL €5.91B VS. €4.5-5.5B INDICATED RANGE IN 2017, 2026 AND 2028 BONDS
- Sells €2.662B in 2.1% Apr 2017 bono; Avg Yield: 1.595% (EMU record low) v 2.182% prior; Maximum Yield: 1.62% v 2.203% prior; Bid-to-cover: 2.2x v 3.62x prior; Tail: 2.5bps v 2.1bps prior
- Sells €1.811B in 5.9% Jul 2026 Bono; Avg Yield 3.997% v 4.469% prior; Bid-to-cover: 1.41x v 2.41x prior; Max Yield: 4.012% v 4.488% prior; Tail: 3.5bps v 1.9bps prior
- Sells €1.442B in 5.15% Oct 2028 Bono; Avg Yield 4.199% v 4.192% prior; Bid-to-cover: 1.99x v 2.7x prior; Max Yield 4.223% v 4.198% prior; Tail: 2.4bps v 0.6bps prior

(Barclays) European Auto : Where’s the upside?

Little upside to PTs but our favoured stocks still look attractive: When we look at our current price targets we’re painfully aware that there is only 5% upside to our sector favourites. So is it time to sell out of autos or could we be wrong on either our valuation multiples or earnings outlook? Our analysis drives us to believe the latter, and more specifically that we could potentially be underestimating the speed of the European recovery. We currently forecast similar 2 year earnings growth for OEM’s as ‘04-‘07 and multiples are also largely in-line, implying limited re-rating potential. Our regression models point to a rather anaemic EU auto sales recovery (1.4% in 14E) but if they are leading us to undershoot, and upward earnings revisions are required, which names will benefit most? We caution that investors should be careful in stock selection and remember that a simple sensitivity analysis does not factor in market share movements among the players. We continue to prefer VOW3 (PT €225), and also see RNO (OW, €69), Valeo (OW, €83) and Conti (OW, €156) as leveraged to a better EU outlook.

VW, Renault and Valeo most exposed to a recovering Europe: While unsurprisingly our EPS sensitivity analysis to European volumes highlights Peugeot (UW, €6) as the company with the greatest delta to a European recovery, this presumes no loss in market share. In 2013 PSA’s volumes underperformed the Big 5 EU markets -660bp. By contrast Renault’s volumes outperformed +560bp and VW group +110bp. We expect Peugeot to continue to lose share in 14E, given recent underspend on capex. If we are indeed too cautious in our expectation for 1.4% growth, every 1% change in volumes would boost VW group EPS by 3% (€0.7) and Renault 2.3% (even assuming no impact on Nissan). A purer play into Europe without the same pricing/fixed cost absorption lift but ex-model cycle risk are suppliers. Valeo (OW, €83) remains our favoured name for growth and product exposure.

(Nomura) Beverages : RCO, ABI,DGE, HEIA, RI,... RI & ABI Upgraded...


>>> Remy Cointreau
*Further reductions to estimates and TP
Having reduced our estimates after the profit warning with the 1H results, we have become even more cautious following the surprising departure of the new CEO at the end of December. Our further reductions today take account of further weakness in the China business, together with a higher impact from lost agency brands in FY15E. Our TP reduces to EUR 45 from EUR 51.
*Some uncertainty about cognac in China
*Buy-back provides small support
*Valuation – expensive versus peers
Even after the fall in the share price, on our reduced estimate, the shares trade at a premium to spirits peers on a calendar 2014E P/E of 26.2x vs Pernod (16.6x) and Diageo (18.1x), with a spirits average of 19.9x. At our TP, the shares would be valued at a P/E of 20x. We retain our Reduce rating.

>>> Pernod Ricard : China now in share price; upgrade to Buy
*Slow 1H as expected
*Increase to TP despite cutting FY14E
*Getting towards the end of the hiatus period
*Valuation
Pernod trades at a calendar 2014E P/E of 16.6x vs Diageo at 18.1x and spirits average at 19.9x. At our target price, Pernod would trade at a P/E of 18.5x.

>>> Anheuser-Busch InBev : Earnings visibility offers protection to rating; higher returns offer attractions
* Upgrade to Neutral from Reduce
We upgrade ABI to Neutral from Reduce and increase our DCF-driven price target to EUR 75 from EUR 67. Although we see a number of pressures for big beer, as flagged in our 12 September report, we believe that good earnings visibility at ABI combined with scope for higher returns to shareholders provides some protection to the premium rating (calendar 2015E P/E of 17.9x vs the beer average 17.0x).
*Pressures for big beer….
*….but earnings visibility offers protection to the rating…
*…and higher returns offer attractions….
*‘Steady-as-she-goes’…..but not ‘rock-and-roll’

(Barclays) European Capital Goods : Adding quality to the mix

--> Rating changes: We are upgrading Legrand, a quality play on European construction recovery, to Overweight and SKF, post significant underperformance, to Equal Weight.

--> We see close to 20% upside potential on average for : Siemens, Philips, Sandvik, Legrand, Atlas Copco and Prysmian. 
On the downside we highlight Alstom, Kone, Metso, Alfa Laval and Osram.

Our preferred names in European Capital Goods are Siemens, Philips and Sandvik for restructuring, Legrand and Atlas Copco for mispriced quality and Prysmian for a bit of both. We think the sector in aggregate looks at best fairly valued on 2015E earnings and relative to the market. Following the reset in growth expectations last year (10% downgrades to FY14E EPS) current consensus growth estimates now look realistic. We are forecasting 11% EPS CAGR 2013-2015E reflecting a mild recovery in Europe, modest US growth and a mixed development in emerging markets.

See note attached

(BFW) Acciona Tumbles in Madrid After Announcing Convertible Bond

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BN 01/16 08:06 *ACCIONA DROPS AS MUCH AS 7% IN MADRID TRADING BN 01/16 08:04 *ACCIONA TRADING DELAYED ON VOLATILITY, EXCHANGE SAYS BN 01/16 08:00 *ACCIONA DECLINES IN MADRID AFTER CONVERTIBLE BOND ANNOUNCEMENT

+------------------------------------------------------------------------------+

Acciona Tumbles in Madrid After Announcing Convertible Bond 2014-01-16 08:13:55.460 GMT

By Todd White Jan. 16 (Bloomberg) -- Co. declines as much as 7% after announcing plans to sell convertible bonds. * Stock declines to EU44.97/shr vs EU48.35 close yday * Shares recover to EU47.345, down 2.1%, at 9:12 a.m. local time

MORE: Acciona to Issue Up to EU450m of Convertible Bonds {NSN MZHH8M6JIJV2 <go>} Link to Company News:{EDP PL <Equity> CN <GO>} Link to Company News:{ENEL IM <Equity> CN <GO>} Link to Company News:{EOAN GR <Equity> CN <GO>} Link to Company News:{GAS SM <Equity> CN <GO>} Link to Company News:{IBE SM <Equity> CN <GO>} Link to Company News:{REE SM <Equity> CN <GO>} Link to Company News:{ANA SM <Equity> CN <GO>}

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To contact the editor responsible for this story: Todd White at +34-91-700-9604 or twhite2@bloomberg.net

(BFW) Volkswagen, Renault Leveraged to Better EU Outlook: Barclays

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Volkswagen, Renault Leveraged to Better EU Outlook: Barclays 2014-01-16 07:39:36.346 GMT

By Francesca Cinelli Jan. 16 (Bloomberg) -- Valeo, Continental also among cos. most exposed to Europe recovering, Barclays says. * Volkswagen Pref, Renault, Valeo, Continental, BMW kept at overweight * Faurecia, GKN, Volkswagen Ord kept at equalweight * Daimler, Peugeot, Michelin, Pirelli kept at underweight

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To contact the reporter on this story: Francesca Cinelli in Milan at +39-02-80644-252 or fcinelli@bloomberg.net