>>> US Early pre-market gappers

Early pre-market gappers

Gapping up:

ARIA 8.8%, ASTC 6.23%, UTHR 5.78%, SCMP 4.97%, AMRN 4.76%, SKUL 4.30%, AAPL 3.82%, DRI 3.74%, BWEN 3.11%, LPSN 2.91%, IRBT 2.85%, DRCO 2.76%, CAMP 2.58%, GGB 2.55%, VFC 2.53%, SRPT 2.30%, ESLT 2.26%, STM 2.24%, JBL 2.23%, DDD 2.23%, HIMX 1.93%, GLW 1.84%, CUK 1.82%, PFE 1.69%, FIVE 1.67%, CHL 2.17%, CCL 1.42%, TSLA 1.22%

Gapping down:

TSEM -6.31%, HUM -5.08%, NBG -5.02%, TI -1.98%, TIF -1.90%, SID -1.53%, MU -1.22%, SNY -1.18%, GOLD -0.65%, SDRL -0.59%, GLD -0.53%, TGT -0.51%

WSJ : McKesson Can't Escape Elliott Pressure

McKesson Can't Escape Elliott Pressure

Investors Should Take Elliott's Resistance Seriously

McKesson is being asked to stick or twist.

Activist investor Elliott said again Monday that the U.S. pharmaceutical wholesaler's €23-a-share offer for German drug distributor Celesio CLS1.XE -0.48% "substantially undervalues" the company. With an interest of 25% in Celesio, the hedge fund's stance imperils the deal, which has a 75% acceptance threshold.

Elliott is well known for playing the German takeover system to its advantage. But investors shouldn't assume the hedge fund is bluffing.

Under German rules, those who don't tender into a successful takeover offer usually end up in a court process to determine a fair price. Holdouts are paid a fixed dividend, offering an attractive bond-like return. An option to sell to the buyer, at a predetermined price, limits potential losses. Then there is the hope that the judge orders the buyer to pay a few extra euros, albeit after a process that can take several years.
Elliott has form in playing the "back end," as the trade is known. Recent deals, such as Vodafone's bid for Kabel Deutschland , have highlighted the money to be made endangering deal approval. So, runs one argument, Elliott may be trying to scare others into accepting McKesson's offer so that the deal doesn't collapse, leaving the hedge fund free to pursue its preferred result in the courts.
It is unusual for the hedge fund to oppose a deal in so public a manner; backing down now would dent its reputation. Meanwhile, the Celesio deal already faces a challenge in getting approved thanks to the company's convertible bonds, equivalent to 15% of the company. While Celesio shares would likely plummet should the deal fail, the bonds should be more resilient. That means holders—including Elliott—already have good reason to hold out for a possible court process.
McKesson may yet increase its offer, which valued Celesio at €6.1 billion including debt. Celesio's profits have been shrinking, hurt by price competition and European austerity. So paying close to the valuation Walgreen shelled out for Alliance Boots last year already seemed more than fair. But, as its rivals consolidate, McKesson might feel that it needs a foothold in Europe and increased scale to compete.
Celesio shares, which are still trading close to the offer price, are a bet that McKesson, not Elliott, will blink first.

WSJ : McKesson is being asked to stick or twist.

McKesson is being asked to stick or twist.

Activist investor Elliott said again Monday that the U.S. pharmaceutical wholesaler's €23-a-share offer for German drug distributor Celesio CLS1.XE -0.48% "substantially undervalues" the company. With an interest of 25% in Celesio, the hedge fund's stance imperils the deal, which has a 75% acceptance threshold.

Elliott is well known for playing the German takeover system to its advantage. But investors shouldn't assume the hedge fund is bluffing.

Under German rules, those who don't tender into a successful takeover offer usually end up in a court process to determine a fair price. Holdouts are paid a fixed dividend, offering an attractive bond-like return. An option to sell to the buyer, at a predetermined price, limits potential losses. Then there is the hope that the judge orders the buyer to pay a few extra euros, albeit after a process that can take several years.
Elliott has form in playing the "back end," as the trade is known. Recent deals, such as Vodafone's bid for Kabel Deutschland , have highlighted the money to be made endangering deal approval. So, runs one argument, Elliott may be trying to scare others into accepting McKesson's offer so that the deal doesn't collapse, leaving the hedge fund free to pursue its preferred result in the courts.
It is unusual for the hedge fund to oppose a deal in so public a manner; backing down now would dent its reputation. Meanwhile, the Celesio deal already faces a challenge in getting approved thanks to the company's convertible bonds, equivalent to 15% of the company. While Celesio shares would likely plummet should the deal fail, the bonds should be more resilient. That means holders—including Elliott—already have good reason to hold out for a possible court process.
McKesson may yet increase its offer, which valued Celesio at €6.1 billion including debt. Celesio's profits have been shrinking, hurt by price competition and European austerity. So paying close to the valuation Walgreen shelled out for Alliance Boots last year already seemed more than fair. But, as its rivals consolidate, McKesson might feel that it needs a foothold in Europe and increased scale to compete.
Celesio shares, which are still trading close to the offer price, are a bet that McKesson, not Elliott, will blink first.

(Telegraph) Shell to sell off £18bn in assets after profits tumble

Shell to sell off £18bn in assets after profits tumble
Oil giant is to start a sale of up to $30bn (£18bn) of assets next year after weak refining margins and oil theft in Nigeria caused a sharp fall in profits
Oil giant Shell is to start a sale of up to $30bn (£18bn) of assets next year after weak refining margins and oil theft in Nigeria caused a sharp fall in profits, it can be disclosed.
Assets on the chopping block include a $7bn stake in Woodside Petroleum, Australia’s second largest oil and gas producer; oil assets in the Niger Delta worth $2bn; and other assets totalling $20bn, according to oil and gas analysts from JP Morgan Cazenove.
Last month, Peter Voser, Shell’s chief executive, said: “We are entering into a divestment phase like we had a few years ago.”
According to Fred Lucas, of JP Morgan Cazenove, Shell’s guidance for capital spending implies at least $15bn in asset sales during the next two years. “Yet without too much thought to portfolio stress, we can isolate almost double that figure of potentially non-core assets in Shell’s global portfolio,” he added.
The $30bn disposal plan could be unveiled as early as next month and would be the largest in the Anglo-Dutch oil group’s history, representing 17pc of the FTSE 100 company’s $178bn net assets.
“We are facing headwinds from weak industry refining margins, and the security situation in Nigeria, which continue to erode the near-term outlook,” said Mr Voser when he reported in October that third-quarter pre-tax profits had slumped by 31pc to £2.56bn. Results took a $300m hit due to the “deteriorating security situation” in Nigeria and a blockade there.
But Shell has also come under pressure from investors this year, as capital investment increased while the shares underperformed.
The shares fell the most in two years on October 31 when Shell said net spending had risen this year because of acquisitions and higher costs at projects. Mr Voser said that the five-year $130bn investment plan will peak this year.
Mr Voser, a Swiss national, is to step down at the end of the year and will be succeeded in January by Shell’s Dutch refining and marketing chief, Ben van Beurden.
The company came under fire from major investors over the weekend for allegedly not treating British investors on a par with Dutch shareholders. Shell cancelled a London event last year that provided a live TV link-up to its annual meeting in the Hague, angering British-based investors.
Shell said more clarity on the asset disposals would be given in full-year results on January 30.

(BFW) Mulberry Cut at Goldman, Rev. Slowdown More Than Estimated

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Mulberry Cut at Goldman, Rev. Slowdown More Than Estimated 2013-12-23 08:00:46.699 GMT

By Heather Burke Dec. 23 (Bloomberg) -- Mulberry cut to neutral at Goldman, sees outlook weaker than earlier estimated after co. reported 1H results. * Cuts FY14 rev. est. by 6%, FY15 by 9% * Cuts FY14 oper. profit est. by 6%, FY15 by 11% * FY14/15 sales may be hurt with wholesale changes, slower Asia store openings * Had “turbulent” last yr with changes to brand strategy to position more higher-end * Sees strategy successful, scale of rev. slowdown more than estimated * Shrs down 21% YTD vs FTSE All Shr up 14%

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

--Editor: James Cone

To contact the reporter on this story: Heather Burke in London at +44-20-7673-2044 or hburke2@bloomberg.net

To contact the editor responsible for this story: James Ludden at +44-20-7673-2645 or jludden@bloomberg.net

(BFW) Bouygues Telecom to Reach 1M 4G Clients in Coming Days, CEO Says

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Bouygues Telecom to Reach 1M 4G Clients in Coming Days, CEO Says 2013-12-23 07:56:37.440 GMT

By Rudy Ruitenberg Dec. 23 (Bloomberg) -- Bouygues Telecom has client base of 11 million, CEO Olivier Roussat says in interview on radio broadcaster France Inter. * Bouygues Telecom has invested EU1.5b in 4G over 2 yrs: CEO * Bouygues Telecom invests EU800m in “normal year” * 4 mobile operators in France is “political choice” and something that “seems completely viable” * Bouygues plans offer to develop in fixed market in 1H 2014

Link to Company News: EN FP <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: Rudy Ruitenberg at +33-1-5365-5039 or rruitenberg@bloomberg.net

(NYPost) John Malone wants to be The Man of cable


“Grow big or go home” has been John Malone’s business plan since he was a cable-system operator in Denver in the 1970s.
Today Malone, 72, is at the center of a consolidation effort that would combat ever-increasing programming costs, as well as compete more efficiently with new providers like Netflix.
Charter Communications, in which Malone’s Liberty Media owns a 27 percent position, with its 6.8 million customers, is said to be lining up financing to acquire rival Time Warner Cable and its 12 million subscribers. A takeover of TWC could be valued at about $61 billion.
If Malone succeeds with the merger it could make Charter the number three cable service provider in the US.
Charter’s stock has been on a tear this year rising 90 percent while the company has added 1 million subscribers.
Malone and his CEO, Greg Maffei, met with large TWC shareholders in Denver last week saying the companies could wring out $700 million in annual synergies through a merger.
The savings could come from reduced capital spending, lower annual programming costs and other cuts in operating expenses.
To many on Wall Street, it’s no secret what else Malone hopes to accomplish in these moves.
Money manager Michael Holland succinctly summed up one of Malone’s motives in only two words: Make money.
“He is a moneymaker,” Holland said. “When smart people like him do roll-ups, they make a lot of money.”
Holland added that Malone’s independent view of the deal-making universe separates him from the pack.
“He has a dispassionate view and looks at the world in a detached, professional way that has served him well,” Holland said. “He is not afraid to look further out than other people. And when people go one way, he isn’t afraid to move in the opposite direction.”
So far in 2013, Liberty Media obtained the majority control of satellite radio’s SiriusXM for $158 million, and grabbed a big stake in Charter Communications for $2.6 billion.
Also this year, Liberty Global, which came into being in 2005 with the combination of Liberty Media’s international organization and UnitedGlobalCom, took over the UK cable-TV and Internet provider Virgin Media for $16 billion.
Liberty Media declined to comment for this story.
Can Malone succeed in putting his stamp on the cable industry?
“Even by the standards of top-level entrepreneur/CEOs, Malone stands out for the ferocity of his single-minded vision for his companies,” says Nell Minow, a corporate-governance expert with GMI Ratings.
Other cable players like Cablevision, Cox and Comcast are keeping a close eye on Malone’s doings and are reportedly speaking with bankers about financing their own expansion plans.

(BFW) Bureau Veritas/Maxxam to Generate Limited Synergies: Berenberg

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Bureau Veritas/Maxxam to Generate Limited Synergies: Berenberg 2013-12-23 07:25:55.512 GMT

By Francesca Cinelli Dec. 23 (Bloomberg) -- Reasonable price and deal EPS- enhancing from yr one coupled with limited scope for synergies or operational improvements, Berenberg says. * Bureau Veritas kept at hold with PT EU21.3 * NOTE from Dec. 21: Bureau Veritas agrees to buy Maxxam to expand in North America {NSN MY5PZP6KLVR4 <go>}

Link to Company News:{BVI FP <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: Francesca Cinelli at +39-02-80644-252 or fcinelli@bloomberg.net

>>> What to look at today

US Market closed higher, extended its weekly gained to 2.7%, all indexes closed higher but Russel continue to be the best performer (1.9% on Friday), Tech large cap had a good day helping Nasdaq to post strong perf too, Telecom was the only sector down...Volume was clearly on of the best one we saw for the last few months with 1.7bil shares traded {NYSEVOL Index GP<GO>}...Volume was helped by quadruple witchig and quaterly rebalancing...VIX @ 13.79 -2.5%...Michigan confidence expected today....China Mobile and Apple finalize their long awaited partnership Release date 17th of Jan...Despite a 2nd consecutive liquidity injection by the PBoC on Friday - a larger CNY300B move vs Thursday's CNY200B - repo and Shibor rates are still higher. The former opened down 200bps but then spiked higher all the way toward 10% mark. 7-day shibor hit another multi-week high, rising 120bps above 8.8%. Despite the bounce in rates, Shanghai Composite is up marginally in the afternoon break, rising 0.3%...Nikkei225 is closed in observance of Emperor's Birthday holiday. Over the weekend, govt announced it would target FY14/15 real GDP at 1.4%, up from 1.0% prior forecast but down from 2.6% expected in FY13/14.

Eur$1.3680 S&P Fut +0.3% European Fut : +0.23%

>>> Keep an eye on :
- BALNE NA : Ballast Nedam Awarded $148M contract for hospital in Curacao
- BAMNB NA : BAM Expects Sales to Grow in Germany: Dagblad Cites CEO De Vries
- CA FP : Carrefour Dubai retail group Majid Al Futtaim to build mall with a Carrefour store in Oman, with $467M investment
- CLS1 GY : Celesio AG Shareholder Elliott reiterates opposition to McKesson's bid
- CO FP : Monoprix issuing €500M in mandatory convertible bonds, to be used to strenghten its capital base
- CON GY : MORE: Denso, Continental, Bosch Fined in Korea for Price Fixing
- DUFN VX : Dufry Names Luis Marin as New Chief Corporate Officer
- F IM : Chrysler: Fiat restarts negotiations with Veba to acquire 41.5%
- FRA GY : Fraport Wants to Build Frankfurt Terminal 3 `When Needed:' FAZ
- France Wants to Strengthen Telecoms Regulation, Parisien Says
- French Banks : French Banks to Lift Retail Charges in 2014, Les Echos Says
- FRX US : Forest Labs would consider reverse takeover with Irish pharma group
- German Tourism Sector May Loose 25,000 Jobs on Tax Claims: Bild
- IHG LN : InterContinental Eyes U.K., Germany, Russia for Growth: Echos
- NXI FP : Oralia (Oralia, the 5th largest property management group in France) to be acquired by Nexity,
- 1913 HK : Prada -5.3% after Saying FY Sales May Miss Estimates
- STLN SW : Schmolz + Bickenbach CEO Johannes Nonn to Step Down
- SUN SW : Sulzer Chairman Manfred Wennemer to Resign From the Board
- TTKOM TI : Carlos Slim, the Mexican businessperson, is holding talks to buy Oger Telecom's 55% stake in Tur Telekom, HaberTurk, denied soon after by Turk Telecom
- TFI FP : Reaches agreement to broadcast French national team soccer games until 2018
- VIV FP : Canal+ May Face More Obligations Over D8 Purchase, BFM Says
- UHR VX : Tiffany to Pay Swatch Group Damages of CHF402m
- UHR VX : Swatch Kept at Neutral at Citi, Richemont Still Preferred
- URKA LI : Uralkali: units close to Mikhail Prokhorov buy further 5.34% stake

>>> Brokers Upgrades & Downgrades

>>> Up
*DELHAIZE RAISED TO NEUTRAL VS SELL AT GOLDMAN
*UNITED UTILITIES ADDED TO CONVICTION BUY AT GOLDMAN


>>> Down
*MULBERRY CUT TO NEUTRAL VS BUY AT GOLDMAN
*SPIRENT COMMUNICATIONS CUT TO SELL VS NEUTRAL AT GOLDMAN


>>> PT change
*Austrian Post PT Raised to EU32.5 vs EU31.5 at Nomura
*Prada PT Cut to HKD72.2 vs HKD73.4 at Mediobanca
*Pop. Milano PT Cut to EU0.45 vs EU0.47 at Kepler Cheuvreux

>>> Initiation


>>> Country Sector Stock
*ABB CUT FROM GOLDMAN’S SUSTAIN FOCUS LIST
*ELAN CORP CUT FROM UBS’S M&A WATCH LIST AFTER PERRIGO DEAL
*TECHNIP CUT FROM GOLDMAN’S SUSTAIN FOCUS LIST
*Swatch Kept at Neutral at Citi, Richemont Still Preferred
*UNITED UTILITIES ADDED TO CONVICTION BUY AT GOLDMAN