FT : BlackRock supports Nigel Bolton over Saipem trade


BlackRock has thrown its full support behind Nigel Bolton, head of European equities at the fund management giant, after Italian regulators began legal proceedings against him alleging insider trading.
Mr Bolton will keep control of his $14bn portfolio and continue dealing with clients, BlackRock said, and the company is confident he will be exonerated.
Italy’s Commissione Nazionale per le Societa e la Borsa, Consob, claimed that Mr Bolton had non-public information when he sold €315m of shares in oil services group Saipem last January, the day before a devastating profit warning.
The investors who bought Saipem shares from BlackRock, in a block trade organised by Bank of America Merrill Lynch, lost more than €114.5m, according to Consob.
Consob also alleges that BlackRock declined to provide the regulator with information and was an obstacle to Consob’s investigation, something the fund manager denies.
BlackRock said that Mr Bolton’s trade was based on weeks of public speculation about Saipem’s financial position, in the wake of corruption allegations and the resignation of its chief executive. Saipem is controlled by Italy’s state-owned energy firm Eni.
Mr Bolton and his team attempted to gather information from the company and from bank analysts that covered Saipem, but never used non-public information, BlackRock’s internal investigation concluded. The trade was based in part on a third-party analyst research report reducing earnings estimates, which was issued to the market before trading on January 25, it said.
“Insider trading is abhorrent to BlackRock’s values, and we would never tolerate it,” a spokesman for the fund manager said.
“The mere fact that shares were sold shortly before a profit warning is not evidence of insider trading, particularly when the information on which the trade was made was widely available in the marketplace.”
Consob launched civil proceedings against Mr Bolton on January 3, BlackRock revealed in a US regulatory filing late on Friday. The company has not been charged, but may be liable for any wrongdoing by an employee. Under Italian law, fines could be larger than the losses the company avoided.
Mr Bolton, one of the UK’s most influential fund managers, joined BlackRock in 2008 from Scottish Widows, where he had been a director and head of European equities. BlackRock’s European equities team manages $40bn in total.

(Barron's) Why Magna Still Has Another Gear

--> The Bottom Line
Shares of the Canadian auto-parts maker could provide a total return of nearly 30% if investors accord it a multiple in line with the industry or the Standard & Poor's 500.


Why Magna Still Has Another Gear

Powered by the resurgent U.S. auto market, Canada's giant vehicle-parts supplier has been growing steadily.
The cars, pickups, and SUVs roaring off auto dealers' lots these days may bear the name of Ford, Buick, or Chevrolet, but their guts are made by a lesser-known, Canadian outfit, Magna International . The sales have boosted Magna's profit growth, but its shares are almost as overlooked as its brand.

Based in Aurora, just outside of Toronto, Magna (ticker: MGA) is North America's largest auto supplier by revenue. It controls 11.3% of the fragmented U.S. auto-parts industry, according to researchers at IBISWorld. It sells nearly every part of a vehicle, from chassis to seats to electronic systems, and has counted every major auto maker as a client. With U.S. new-vehicle sales rising at solid, high single-digit rates, what Magna could most use right now is a similar bounce in Europe, which could shift the company into a higher gear.

Magna's stock is cheap. It trades at 10.6 times 2014 earnings expectations, well below the industry's 14.9 average multiple and the Standard & Poor's 500's 15.7 times. A debt-free balance sheet, ample cash, and a robust stock-buyback plan give the shares an even nicer shine.

A more appropriate valuation of 14 times his firm's estimate of $7.60 a share in 2014 puts the shares at about $106, up from a recent $82.87, notes Scott Black of Delphi Management, which owns Magna stock. Add the company's dividend, now yielding 1.5%, and the total return could approach 30%. "This is selling at a huge discount," Black says. "At some point, the gap gets closed."

MAGNA WAS FOUNDED IN 1961, and grew by building relationships with the world's car companies. Magna makes 52% of its sales in North America and 40% in Europe, with the rest spread around the globe. Magna capitalized on Detroit's preference for outsourcing production of its car parts in the 1990s, but suffered when the Big Three nearly collapsed during the financial crisis. Sales fell 33% from 2007 to 2009.

However, the parts maker has thrived with the U.S. rebound. Sales have doubled since 2009. Once final numbers are tallied, Magna is expected to have earned $6.40 per share on $34.5 billion in sales for 2013, up from $5.74 and $30.8 billion a year earlier. In 2014, consensus earnings are projected to rise 22%, to $7.82, on $36.1 billion in sales.

Some of the gains are reflected in the stock price, which rose 64% in 2013, on top of 2012's 50% jump. But there are several reasons why it should climb further.

Europe's weakness has forced Magna to accelerate while driving uphill. European car registrations, a proxy for sales, fell from 16 million in 2007 to 12.5 million in 2012, and are on track to drop in 2013, according to the European Automobile Manufacturers' Association. Magna has closed plants in Europe and expects $100 million in restructuring charges there in 2013, about 6% of net income.

But there are signs that the Continent's car sales could turn higher next year. Registrations rose three months in a row through November. December results will be released this week, but industry data suggest a 9.4% gain in registrations in France, 18.2% in Spain, and 12.3% in Belgium. Auto sales should rise about 3% in 2014 and 4% in 2015, according to Deutsche Bank.

[image]
"Any type of growth in Europe will be a benefit to them," Wells Fargo Securities analyst Richard Kwas says of Magna. Margin growth could also help—Magna's European margins rose to 2.5% in the first nine months of 2013, up a percentage point from the year before. Within two to three years, CEO Don Walker expects them to top 4%. The company's margins are closer to 9% in North America.

If Magna's margins in Europe were to hit 4.2% by 2016, and the region's auto production rises to 20.1 million from 18.9 million in 2013, it would add roughly a buck to Magna's earnings per share, says RBC Capital Markets. That's a hefty boost for a company now making less than $7 a share.

The stock market is factoring in very little auto-sales growth in the U.S. and a total stall in Europe, says Kwas. In 2013, new-vehicle sales rose 7.6%, to 15.6 million, in the U.S. Auto researcher Kelley Blue Book sees sales hitting 16.3 million in 2014, the highest total since 2006.

Even if the pie doesn't grow much, Magna should grab a bigger slice as auto makers use more common parts in different vehicles. That should also help Magna's earnings grow by about 17% long term, faster than the industry and in line with large-cap competitors like Johnson Controls (JCI), which trades at 15.8 times expected 2014 earnings.


Another plus for outside investors: Magna has revamped its ownership structure since 2010. For most of its history, it had two share classes, and Chairman Frank Stronach's family controlled the voting shares, despite owning a small stake. Shareholders had little say when Stronach made unusual decisions, like buying a California racetrack. But Stronach accepted a big buyout for his controlling shares, with the deal's final phase slated to be completed after 2014, when he gets 2% of pretax income.

A clean balance sheet—$96 million in debt and over $1 billion in cash at the third quarter's end—gives Magna other ways to reward shareholders via buybacks (it repurchased 12 million shares from November 2012 to November 2013), and dividend hikes.

It has been about seven years since the U.S. and European auto markets were humming along in sync. That may not happen again for another year or so. But with Magna shares so cheap, it is, as they say, a great time to buy.

(Barron's) Titan International: Big Wheels on a Roll

Titan International: Big Wheels on a Roll

Tire and wheel maker Titan International struggled in 2013 with weak demand in the construction and mining sectors. A recovery could be in sight.

Investors drove Titan International into a ditch last year, sending shares of the tire and wheel maker down 20% as earnings disappointed.

Titan (ticker: TWI) sells tires and wheels for farm, construction, and mining equipment to customers such as AGCO (AGCO) and Deere (DE). Titan has been slowed by weak spending in the construction and mining sectors, as well as by fears that the current boom in agriculture could end. The falling price of rubber also has put pressure on profits.

Yet, there are good reasons to think a rebound could be in the cards for 2014. Rubber prices are likely to stabilize this year, and demand among construction customers could improve.

Barron's was dead wrong on Titan in a bullish story published in the summer of 2012 ("Nice Wheels, Lovely Ride," July 9), in part misjudging the time it would take for construction and mining demand to rebound. The stock, which closed on Friday at $17.18, has dropped 30% since our story.

Titan International struggled in 2013 with weak demand for wheels and tires in the construction and mining sectors. A recovery could be in sight this year.
Titan looks cheap at five times enterprise value to 2014 estimated earnings before interest, taxes, depreciation, and amortization. It likely wouldn't take much improvement to lift the shares. Of the six Wall Street analysts who cover the company, only Ian Zaffino of Oppenheimer rates the stock a Buy, with a 12- to 18-month price target of $21 a share.

Quincy, Ill.-based Titan is a giant in the farm wheel and tire business, controlling 75% of the North American off-the-road market for farm wheels, and 40% for tires. On the farm, its wheels, tires, and undercarriages are used for heavy equipment such as tractors, planters, and plows. In the construction and mining industry, its tires can be found on machinery such as dump trucks and backhoe loaders.

Agricultural markets make up 59% of sales, and mining and construction, 28%. Titan also has a smaller division, selling wheels and tires for all-terrain vehicles and golf carts.

Analysts expect Titan to post a profit of $54 million, or 92 cents a share, for 2013, a sharp drop from 2012's earnings of $1.93 a share. Revenue could total $2.2 billion. This year earnings could reach $1.05 a share, reflecting stronger markets.

After a disastrous 2013, an improvement in the construction and mining division would be especially welcome. In the September quarter, excluding an acquisition, the division's sales fell about 25% from the 2012 period. In the mining industry, in particular, which has suffered from a steep drop in coal mining, severe price competition knocked the price of giant tires that once cost $50,000 to the low $30,000 range.

[image]
Titan management expects mining to stabilize this year, but is more optimistic on construction, believing that a turn in demand is near as customers' inventory levels are worked down. On a December conference call, CEO Maurice Taylor mentioned that road machinery and home sales could drive demand, and guided for at least 20% sales growth in 2014. The company couldn't be reached for comment.

TITAN ALSO COULD BENEFIT from a pickup in its agricultural aftermarket business, as wheels and tires for farm machinery sold several years ago, at the peak of the market, come due for replacement. Profit margins in the aftermarket business are about 10 percentage points higher than in the original-equipment market. Improved aftermarket sales would help restore company-wide gross margins, which dropped to 3.4% in the September quarter, the lowest level since 2009.

Management expects the overall agricultural business to stay strong. The slide in rubber prices could also reverse. Gross profit fell by $15 million in 2013 as falling rubber prices forced the company to pass through prices below what it had paid.

Spinning off or selling the mining business also could help Titan's fortunes. Its mining-tire operation is a relatively small player in the industry, and the industry's long-term outlook generally isn't great.

Lawrence De Maria, an analyst at William Blair, noted in a recent report that one plus to a breakup would be that Titan "could refocus on its core business and work to continually improve operations."

>>> US Weekly Top Winners & Losers

>>> This week's top 20 % gainers
- Technology: CCIH (14.28 +29.94%), AYI (132.66 +22.66%)
- Services: FRAN (22.5 +22.88%), PMC (25.91 +22.8%)
- Healthcare: ICPT (445.83 +544.54%), NBIX (19.15 +98.45%), EPZM (40.41 +96.45%), SGMO (19.07 +40.63%), OMED (37.38 +29.07%), ZGNX (4.31 +27.89%), XON (29.87 +27.11%), PCYC (132.01 +24.8%), GALE (6.35 +24.75%), IMMU (6.1 +23.98%), AMPE (9.35 +23.19%), GEVA (80.99 +22.47%), CLVS (73.98 +22.32%), ECYT (14.02 +22.23%)
- Basic Materials: PVA (11.25 +23.36%)

>>> This week's top 20 % losers
- Technology: BCOV (11.54 -20.8%), TWTR (57 -17.39%), NIHD (2.23 -15.66%), AMBA (29.31 -14.32%)
- Services: HGG (10.62 -21.91%), FWM (14.49 -20.91%), SHLD (36.71 -20.42%), VOXX (13.81 -17.06%), JCP (7.34 -16.02%), TAL (46.55 -15.66%), RT (5.92 -15.43%), CETV (3.15 -15.32%), CTRP (38.95 -14.45%), NM (9.01 -13.61%)
- Industrial Goods: AZZ (40.34 -15.25%)
- Healthcare: AMAG (20.79 -13.12%)
- Financial: NOAH (15.07 -14.76%)
- Consumer Goods: SCSS (17.51 -17.99%)
- Basic Materials: NRP (16.6 -15.99%), WLT (13.8 -13.64%)


(ZH) Are Stocks Cheap?

Are Stocks Cheap? {http://bit.ly/1lN29Ki}

We have asked (and answered) this question a number of times in recent weeks. Ignoring for a moment the bubble-trajectory, hope-expectations, and investor sentiment, as ex-Morgan Stanley-ite Gerard Minack notes, equity markets in 2013 appeared to completely ignore macro fundamentals. For 2014, as we warned here, the dream of moar multiple expansion may be over. With the Fed desperate to convince the world that strong language is just as effective as 100s of billions of dollars in liquidity provision, we suspect the 'wedge' between hope and reality will compress (significantly)...


Even Goldman Sachs is starting to question the sanity of its clients hopes and dreams...

S&P 500 valuation is lofty by almost any measure, both for the aggregate market (15.9x) as well as the median stock (16.8x).
We believe S&P 500 trades close to fair value and the forward path will depend on profit growth rather than P/E expansion.
However, many clients argue that the P/E multiple will continue to rise in 2014 with 17x or 18x often cited, with some investors arguing for 20x.
We conclude that further P/E expansion will be difficult to achieve. Of course, it is possible. It is just not probable based on history.

(BofA-ML) 2014 European Leisure - (Eden Red Downgrade)

* Recommendation changes
While remaining bulls of the LT growth strategy, we move InterContinental Hotels Group from Buy to Neutral, PO to 2200p (22x 2015E PE, in line with US peers) from 2100p (ADR PO to US$36.08 from US$33.50); based largely on valuation (post a 16% P/E re-rating in 2013) and subdued ST earnings momentum; we are 5% below 2014 consensus EBIT. We cut Edenred from Neutral to Underperform, PO to EUR22 (20x 2015E PE, 10% discount to VISA/Mastercard average) from EUR24.3 as the earnings downgrade cycle continues, reflecting EM currency weakness (c.50% EBIT); we are 7% below 2014 consensus EBIT.

* Sector valuation trading close to highs
Over the past two years sector SPs have doubled; valuations have re-rated 65% to 16x vs. historical 10-18x range. Inevitably, growth/upgrades now need to take a more prominent role in driving SP upside. Our key picks stay focused on earnings momentum, structural growth and where there is still potential for valuation upside.

* Idea 1: Whitbread (Buy, PO raised from 3700p to 4500p)
We are 7% ahead of consensus 2014/15 EPS and continue to back the LFL (3-4%) and space growth (7%+) strategy. We also continue to like the strategic optionality in relation to either the disposal of Pub Restaurants (worth £700mn+) and/or the separation of Costa Coffee (worth £2.5bn+). Our new 4500p PO values Premier Inn 12x EV/EBITDA, Pub restaurants 9x EV/EBITDA (in line with industry peers) and Costa Coffee 13.5x EV/EBITDA (in line with Starbucks). In aggregate this values Whitbread at 20x 2015 EPS; a growth rating for a growth stock.

* Idea 2: Compass (Buy, PO raised from 1070p to 1160p)
Compass is capable of a prolonged 15% TSR. The global food service market is large (US$200bn) and only 44% outsourced; the biggest players are taking share. The BS remains prudent (1x net debt to EBITDA) with capacity for greater utilisation. Cyclical volumes are depressed (c.12% vs. 2008) which has potential to recover. Margins will continue to improve (we forecast 8% by 2018). Our PO 1160p (2015E PE 21x) values underlying business 1000p (2015E PE 18x) with an additional 100p for future BS utilisation and 60p for cyclical volume recovery.

* Idea 3: TUI Travel (Buy, PO raised from 450p to 485p)
TT is on the front foot strategically with content and distribution led strategy that is resonating with consumers. It is driving better margin, earlier bookings, improved visibility and lower risk. Trading momentum is positive as shown by another year of >10% CC EBIT growth in 2013. By 2017, we forecast unique product mix to be 75%+, direct distribution to be 80%+ and group margin to be c.5%. Further, BS is in good shape with close to £1bn of cash by 2015. Our PO 485p (2015E PE 14x) values mainstream 9x EV/EBIT and non-mainstream 12.5x EV/EBIT.

(HSBC) E&P - 2014 Outlook. Top Pick Ophir, Genel & Tullow Upgrad

--> 2013 performance was poor but provided a good entry point
--> We downgrade DNO to UW(V) from N(V); upgrade both Genel Energy and Tullow Oil to OW(V) from N(V)
--> Our key pick for 2014 remains Ophir Energy

2014 outlook

2013 proved to be another poor year for the sector as more of the froth was removed from share prices after a relatively disappointing year with the drill bit. We believe this now provides a great entry point for investors with the shares discounting little in the way of exploration upside. 2014 is
set to be an exciting year with many high-impact wells being drilled. A modicum of success could revive interest in this out-of-favour sector.

We amend our target prices predominantly on the back of our new pricing deck where we increase our 2014e Brent price to USD100/bbl (from USD91/bbl), whilst 2015e is now USD95/bbl (from USD92/bbl) and this is increased by 1% per annum thereafter. We also review the exploration programmes for the next 12 months. Additionally, we believe that progress is being made in the Kurdistan Region
of Iraq (KRI), and so we reduce the discount we apply to assets in this region to our tradition 30% from 50%.

We review our ratings on the sector. We downgrade DNO International to Underweight (V) from Neutral (V) after a strong performance with the shares rising by 160%. Conversely, we increase our rating on Genel Energy to Overweight (V) from Neutral (V) with the reduction in discount of KRI assets. We also raise Tullow Oil to Overweight (V) from Neutral (V) on the back of the share price decline.

Our key pick for the year is Ophir Energy, which has the most exciting drilling campaign in our coverage universe. Our other key picks for the year are Cairn Energy, Genel Energy, Kosmos Energy, Petroceltic International, Salamander Energy and WesternZagros Resources.

>>> Glencore Xstrata rumoured to have linked up acquisition Lonmin? Afren? Tullo

Glencore Xstrata rumoured to have linked up acquisition 

Glencore Xstrata, the listed mining group, is rumoured to be looking at its first acquisition since merging, the Daily Mail reported. The newspaper’s market report mentioned briefly that Ivan Glasenberg, chief executive of group, is thought to have lined up a deal, although it did not name a potential target.

Switzerland-headquartered Glencore Xstrata has a market capitalisation of almost GBP 42bn on the London Stock Exchange.

Source Daily Mail


Last Company mentionned as potential target for Glencore was Lonmin

See article below published on the 9th of Jan 2014
* Glencore could make offer for Lonmin
Glencore, an FTSE-100 mining company, could make an offer for the Anglo-South African platinum mining group Lonmin, a Daily Express market report said. The newspaper did not cite a source for the speculation.
Lonmin’s share price closed 3p down at 301.9p in London yesterday, 8 January, giving the company a market capitalisation of GBP 1.71bn (EUR 2.07bn).
Source Daily Express

Rumored on Afren Last year :

* 26/01/2013 Afren shareholder BlackRock rumoured to be selling stake; Glencore insider denies interest - market reports
Story
Afren shareholder BlackRock is rumoured to be selling its stake in the London-based oil-exploration group, the Financial Times reported. The report did not suggest a buyer but a market report in the Times noted trader chatter this week suggesting that Royal Dutch Shell might be eyeing Afren.

The Daily Telegraph reported that the mining group Glencore was the latest prospective Afren bidder suggested by traders; however, the market report went on to quote a senior Glencore insider who denied interest and said he was unaware of Afren’s existence.

Texas-based Exxon Mobil and Sinopec of China had also been tipped as possible bidders for Afren this week, the Telegraph report said.

FTSE 250-listed Afren has a market capitalisation of GBP 1.6bn (EUR 1.9bn).



Source Financial Times, The Times (London), Daily Telegraph

* 25/01/2013 Afren said to have attracted takeover interest from Sinopec – market report
Story
Afren, the FTSE-250 oil exploration group, has attracted takeover interest from Chinese counterpart Sinopec, according to speculation cited by a Daily Telegraph market report. The newspaper cited traders for a rumour that Sinopec is prepared to offer 215p to 250p per share for Afren.

Afren’s share price closed 0.6p down at 151.4p in London yesterday, 24 January, giving the company a market capitalization of GBP 1.64bn (EUR 1.93bn).
Source Daily Telegraph

* 24/01/2013 Afren the subject of bid speculation – market reports
Story
Afren, the FTSE-250 oil company, was said to have attracted takeover interest, according to a Daily Express market report. The newspaper mentioned talk that a potential buyer was considering making an offer for Afren at 250p per share, but did not cite sources for the rumour.

Another reason for Afren’s 12.75p gain in London yesterday, 23 January, could be positive drilling results from the Paipai prospect in Kenya, the article said. Afren holds a stake in Paipai, the item noted.

A Financial Times report noted that turnover in Afren shares was close to 10 times the daily average. The article also mentioned pre-drill estimates suggesting that the Paipai-1 well could contain 115m barrels of oil. Afren holds a 20% stake in PaiPai, according to the newspaper.

The Financial Times item also mentioned talk that Afren may have attracted predatory interest, naming Exxon Mobil as one potential buyer for the Africa-focused company.

A market report in The Times attributed little credibility to the takeover rumours, mentioning Royal Dutch Shell as another rumoured potential bidder for Afren.

A Daily Telegraph market report cited traders for speculation that two unidentified companies are mulling an offer for Afren. Afren refused to comment about the rumour, the item said.

Afren’s share price closed 12.8p up at 152p in London yesterday, valuing the company at 1.65bn (EUR 1.96bn).
Source Daily Express, Financial Times, The Times (London)

* 02/11/2012 Afren said to have attracted takeover interest from Shell – market reports
Story
Afren, the FTSE-250 energy group, may have attracted takeover interest from FTSE-100 rival Royal Dutch Shell, according to a market report in The Independent. The newspaper did not cite sources for the rumour.

Afren was earlier this year said to be the target of takeover interest from ExxonMobil and ENI, the article said.

A market report in The Times also noted the speculation about a possible Shell bid for Afren. The report mentioned talk that Shell might offer around 250p per share for Afren, but did not attribute the rumour.

Afren’s share price closed 5p up at 142.7p in London yesterday, 1 November, valuing the company at GBP 1.55bn (EUR 1.93bn).


Source Independent, The Times (London)

WSJ : Former Israeli Leader Ariel Sharon Dies

Former Israeli Leader Ariel Sharon Dies
85-Year-Old's Career Spanned Country's History
Former Israeli prime minister Ariel Sharon was a tough, effective military commander before going on to a controversial career in government. We look at three key junctures that will help define his legacy, via The Foreign Bureau. (Photo: Getty)
Former Israeli leader Ariel Sharon, who through his long career was a renowned warrior, champion of Jewish settlements and, eventually, an advocate of a more conciliatory approach toward Palestinians, died Saturday, Israeli media reported.

Mr. Sharon's career spanned the history of Israel from its establishment in 1948. As a soldier, he commanded troops in every major conflict through the 1973 Arab-Israeli war, when he encircled Egypt's Third Army in the Sinai and was hailed at home as the "King of Israel."

In subsequent years, he was a senior member of the Likud Party and served in numerous cabinet posts. Among them, he was minister of defense during Israel's 1982 invasion of Lebanon, an episode that left him tarred by a government commission that blamed him for failing to prevent the killing of a large number of Palestinian and other civilians in what became known as the Sabra and Shatila massacre.

In 2001, Mr. Sharon staged a political comeback when he became prime minister at a time of escalating terrorist violence. As prime minister, he initiated construction of a controversial barrier along the West Bank to protect Israel from incursions.

Then, in 2004, the longtime hawk rocked Israeli politics when he changed course to favor unilateral withdrawal from the Gaza Strip. In 2005, the Knesset approved his disengagement plan to withdraw troops and citizens from the Gaza Strip and four West Bank settlements.

The uproar within Likud following the withdrawal led Mr. Sharon to resign and form a new party, Kadima, that dominated the Knesset for most of the rest of the decade.

Only months after the historic Gaza pullback was completed and amid a 2006 election, Mr. Sharon suffered a stroke that left him in a permanent coma, ending his career and stoking renewed political turmoil.

Ariel Sharon was born at Kfar Malal, a cooperative Jewish farming settlement in the British Mandate of Palestine, outside Tel Aviv. His parents, originally named Scheinerman, were Zionists who emigrated from Russia at the end of World War I.

Arik, as he was known, learned to fight as a child, helping defend his family's farm from Bedouins and other neighboring Arabs. Because it was illegal for settlers to own firearms, he had the job of hiding the family rifle when British troops patrolled the neighborhood.

He joined the Haganah, the underground military movement, in high school, then enrolled in officer training school. Mr. Sharon was 20 when he commanded an infantry company during the Arab-Israeli War in 1948. During the Battle of Latrun, a strategic hilltop between Tel Aviv and Jerusalem, his unit was pinned down under hostile fire from Jordanian forces and sustained heavy losses. Mr. Sharon was seriously wounded.

Mr. Sharon had a reputation as a swashbuckler, sometimes leading men into battle in an armored car stocked with gourmet cheese and sausages. On several occasions, he was accused of exceeding orders and of atrocities, but he was regularly promoted.

After the 1948 war, he battled cross-border raiders in the early 1950s. He led the capture of the strategic Mitla Pass in the 1956 Sinai war with Egypt.

In 1967, months before that year's Arab-Israeli war, he was elevated to the rank of major general, and subsequently won a victory over Egyptian troops in the Battle of Abu-Ageila, helping seal Israel's capture of the Sinai Peninsula.

When Egypt and Syria launched a surprise attack on Israel in 1973, Mr. Sharon had already left the military, but he returned to the front line as a reserve general and led his troops across the Suez Canal, turning the tide against Egyptian forces and cementing his reputation for military prowess.

Mr. Sharon retired after a cease-fire was negotiated, and turned to politics, winning a seat in the Knesset in 1977. He served as agriculture minister and helped draft plans for scaled-up settlements on the West Bank.

In 1982, after the massacres in Lebanon, Mr. Sharon was forced to resign as defense minister when the Kahan Commission found that Israel's army, stationed around two Palestinian refugee camps, knew Christian militants were slaughtering residents of the refugee camps but did nothing to stop it.

After Israel's government stopped establishing new settlements in the 1990s, he encouraged Jewish settlers to set up improvised hilltop settlement outposts, whose watchtowers and crude lodgings gave them the appearance of military bases.

Mr. Sharon's visit in 2000 to the Temple Mount, accompanied by a contingent of armed police, marked the start of a period of swirling Palestinian violence known as the second Intifada. Mr. Sharon was elected prime minister in 2001, defeating incumbent Ehud Barak by a landslide amid disillusionment with Mr. Barak's handling of failed peace talks with Palestinian leader Yasser Arafat.

A year after his election, as suicide bombings on buses and at restaurants escalated, Mr. Sharon ordered the army into Palestinian cities in the West Bank. He directed plans for a permanent barrier in the West Bank; that wall is credited by some with helping stop the wave of suicide bombings by Palestinians in Israeli cities. Mr. Arafat was besieged in his compound in Ramallah, in the West Bank, where he remained isolated until illness overtook him, and he died in 2004.

While battling militants, Mr. Sharon also decided it would be necessary for Israel to uproot settlements and pull back from Gaza and the West Bank to make way for a Palestinian state and avoid creating a binational state.

"He began seeing things in a less dogmatic way'' as prime minister, said David Landau, whose biography, "Arik: The Life of Ariel Sharon," will be published this month.

Mr. Sharon faced a police investigation during his premiership into allegations he was involved in influence peddling. However, Israel's attorney general decided to close the case without an indictment. Mr. Sharon's son, Omri, was convicted and sent to jail in a corruption scandal.

Mr. Sharon left behind a reconfigured Israeli politics when he exited the stage after suffering a stroke. Mr. Sharon's deputy, Ehud Olmert, ended up becoming Kadima's first prime minister.

Mr. Sharon sometimes said his ambition was to retire and farm like his ancestors, and he liked to be photographed seated on his tractor, plowing crops of wheat and cotton, a seeming Cincinnatus.

Early in 2013, his doctors announced that tests had shown that despite remaining in a coma, Mr. Sharon showed significant brain activity. But he never regained consciousness.

Peres Pays Tribute to Israel’s ‘Great Protector€™ Ariel Sharon

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

BN 01/11 12:52 *SHARON `ONE OF ISRAEL'S MOST IMPORTANT ARCHITECTS,' PERES SAYS BN 01/11 12:51 *SHARON WAS A `DARING LEADER WHO LOVED HIS NATION,' PERES SAYS BN 01/11 12:51 *FORMER ISRAEL PM ARIEL SHARON DIED TODAY, PERES STATEMENT SAYS

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

Peres Pays Tribute to Israel’s ‘Great Protector’ Ariel Sharon 2014-01-11 13:01:00.310 GMT

By Mike Harrison Jan. 11 (Bloomberg) -- Israel’s former Prime Minister Ariel Sharon died today, President Shimon Peres said. * “My dear friend, Arik Sharon, lost his final battle today,” Peres said in a statement * Sharon was “a brave soldier and a daring leader who loved his nation and his nation loved him,” Peres said * “He was one of Israel’s great protectors and most important architects, who knew no fear and certainly never feared vision,” Peres said in statement * “He knew how to take difficult decisions and implement them. We all loved him and he will be greatly missed”

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: Mike Harrison at +44-20-7073-3564 or mharrison5@bloomberg.net