WSJ : Sprint Working on a Bid for T-Mobile US

Sprint Working on a Bid for T-Mobile US An Offer Would Test Whether U.S. Regulators Would Allow 3 Major Carriers

Sprint Corp. is working toward a possible bid for rival T-Mobile US Inc., people familiar with the matter said, setting the stage for a giant telecom merger that if permitted by regulators would leave the U.S. wireless market dominated by three big companies.

Sprint is studying regulatory concerns and could launch a bid in the first half of next year, the people said. A deal could be worth more than $20 billion, depending on the size of any stake in T-Mobile that Sprint tries to buy.

A merger of the third and fourth largest U.S. carriers would create a sizable competitor to industry leaders Verizon Wireless and AT&T Inc. But it would likely face tough opposition from antitrust authorities, who worry consumers could suffer without a fourth national competitor to keep a check on prices.

Sprint hasn't yet decided whether to move ahead with a bid. Going forward despite regulators' concerns would be highly risky. Any pursuit of a bid by Sprint could be aimed at testing antitrust officials' reaction to a deal, and a bad reaction could put an end to the effort.

Any bid would come just months after Sprint and T-Mobile completed mergers of their own and would cap a period of extraordinary consolidation in the U.S. wireless market.

It has only been two years since the Justice Department shot down AT&T's $39 billion deal to buy T-Mobile. The smaller carrier is wary of wasting more time on an ultimately fruitless merger deal, people familiar with its thinking said.

Driving the current effort is SoftBank Chief Executive Masayoshi Son, an aggressive acquirer who bought control of Sprint earlier this year and has made no secret of his desire to grow in the U.S. via further deals. SoftBank currently owns more than 80% of Sprint.

Deutsche Telekom AG owns about 67% of T-Mobile US and is looking to possibly exit the U.S. market, the people said. T-Mobile, which became publicly listed this spring after merging with smaller rival MetroPCS Communications Inc., has a market capitalization of just over $20 billion.

Together, Sprint and T-Mobile would have nearly 53 million so-called postpaid subscribers—the industry's most creditworthy and lucrative customers. That would still leave the combined company a distant third to Verizon Wireless, which has about 95 million postpaid subscribers, and AT&T, with about 72 million.

Executives from Sprint and T-Mobile have argued publicly that the government should allow a combination of the two companies, as it would give them the scale to make the network investments and spectrum purchases needed to compete against Verizon Wireless and AT&T.

>>>US Close Dow+0,26% SlP+0,13% Nazdaq+0,20

Closing Market Summary: Stocks End Down Week on Flat Note

The stock market experienced a flat finish to an otherwise-forgettable week. The S&P 500 shed less than one point, maintaining its December loss of 1.7%. Small-caps outperformed as the Russell 2000 gained 0.4%, but the index remains lower by 3.1% this month.

Equities registered opening gains, but the early strength faded during the first 30 minutes of action, sending the major averages to their lows. The key indices spent the rest of the morning near their flat lines before staging a modest afternoon rally. However, selling pressure returned during the late afternoon, sending the S&P 500 back to unchanged for the day.

Today's rally attempts were fueled by the relative strength of four cyclical sectors as consumer discretionary (+0.3%), financials (+0.1%), industrials (+0.4%), and materials (+0.4%) outperformed throughout the session.

The discretionary sector displayed notable strength from the get go as media names advanced in reaction to news Charter Communications (CHTR 131.54, -0.45) is preparing an open letter to purchase Time Warner Cable (TWC 131.41, +0.35) for no more than $140 per share. However, Time Warner narrowed its gain to just 0.3% after a follow-up report indicated the proposed offer would be below $135 per share.

Elsewhere, the industrial sector advanced with help from defense contractors and transports. The PHLX Defense Index gained 0.6% while the Dow Jones Transportation Average added 0.4%.

Also of note, the materials space ended in the lead as steelmakers and miners outperformed. The Market Vectors Steel ETF (SLX 47.71, +0.30) settled higher by 0.6% while the Market Vectors Gold Miners ETF (GDX 21.11, +0.10) gained 0.5% as gold futures increased 0.8% to $1235.10 per troy ounce.

The other commodity-linked sector, energy (-0.4%), ended at the bottom of the leaderboard as crude oil fell 1.0% to $96.53 per barrel. The sector was also pressured by Anadarko Petroleum (APC 78.30, -5.37), which lost 6.4% after the company was held liable for upwards of $14.50 billion in damages in the Tronox bankruptcy case.

Similar to energy, three of four countercyclical groups ended in the red while health care (+0.04%) outperformed.

Despite today's flat finish, the CBOE Volatility Index (VIX 15.77, +0.23) suggested the presence of some demand for volatility protection. The near-term volatility measure registered its third consecutive gain, ending at its highest level since mid-October.

Treasuries registered slight gains, sending the 10-yr yield lower by one basis point to 2.87%.

Participation was well below average as only 627 million shares changed hands on the floor of the New York Stock Exchange.

Among news of note, the House of Representatives passed the budget deal with a 332-94 vote. The bill will now head to the Senate with a vote expected to take place on Tuesday.

Today's economic data was limited to the November PPI report, which pointed to a downtick of 0.1% while core producer prices rose 0.1%. Both readings matched expectations.

>Euro IPO Weekly Calendar

E$$zxpected to Price: * Monday, Dec. 16 * Qrf Comm VA (REITS); to be listed on Euronext Brussels Stock Exchange * Thursday, Dec. 19 * Carbios (environmental control) to be listed on NYSE Alternext Paris

Expected to Price and Start Trading: * Wednesday, Dec. 18 * MartinCo PLC (real estate) expected admission date to London Stock Exchange’s AIM * MoPowered (software) expected admission date to London Stock Exchange’s AIM * Benchmark Holdings (biotechnology) expected admission date to London Stock Exchange’s AIM

Expected to Start Trading: * Monday, Dec. 16 * Moncler (apparel); to be listed on Milan Stock Exchange

Lockup Expiry: * bpost SA (Dec. 18), BSC Drukarnia Opakowan (Dec. 19)

IPOs Amended/Withdrawn/Postponed This Week: * Candyking cancels IPO after supplier factory fires

Announced Over Past Week: * Action Hotels annouces intention to float on AIM; expected admission date Dec. 23 * Sanitec IPO priced at SEK61/shr * Mota-Engil seeks Africa unit IPO in 2Q 2014, targets London * Kodal Minerals annouces intention to float on AIM; expected admission late Dec. * Atlantic Petroleum IPO priced at NOK140/shr * Moncler IPO priced at EU10.20/shr, at top of range * Koch says Metro would only sell minority stake in Russian unit

News to Follow: * Franchise Brands Worldwide plans IPO: Sunday Times * HSBC may sell 30% stake in U.K. retail bank in IPO: FT * Diamond to return to banking with Africa investment vehicle; plans to float acquisition vehicle, known as Atlas Mara, on London Stock Exchange before yr-end: FT * ONO considers IPO of 30% of business in May: Expansion * Tomkins said to work with Goldman Sachs on sale or IPO in 2014 * Clayton Dubilier & Rice said to prepare Exova London share sale * Space SpA IPO books close Dec. 13

>>> Circle Oil Plc Updates on Operations in Tunisia

Circle Oil Plc Updates on Operations in Tunisia
- The Company has been advised that approval has been received from the Tunisian Government, following a competitive bid process, to acquire a permit on a block in the Cap Bon peninsula covering a similar area to the previously owned (now expired) Grombalia permit in which Circle was a minority partner with Tunisian company Exxoil (operator). Circle will be the operator and hold a 100% working interest in the new permit and has the right to apply for conversion to production licence areas in the event of exploration success.
- The licence covers an area of 2,820 sq km and is in an area which includes existing oil and gas field concessions including Cap Bon gas field, Belli oil field, and the El Manzah producing oil field. The Beni Khaled producing oil field concession, where Circle is now a 30% W.I. partner (Exxoil 70% and operator) is entirely enclosed within the new permit. Other discoveries such as Zinnia, Bir Drassen, and Tiref, exist within or are close to the block, and Circle recognises a number of prospects and many leads which have similar geological features to known accumulations. The main targets are the fractured Eocene to Upper Cretaceous carbonates and Lower Cretaceous sandstones, although other plays may be developed following collection of further data.
- Estimates of in place, pre-drill, unrisked, resources on five separate structures prepared by external consultants for the previous operator range from 16MMboe to more than 200MMboe and totalled 480MMboe. These figures will be subject to revision following the receipt of new data to be acquired by Circle.

(BN) Wendel Said to Lead in Bidding for Drug-Patch Maker LTS Lohmann

Wendel Said to Lead in Bidding for Drug-Patch Maker LTS Lohmann
2013-12-13 14:21:38.246 GMT


By Aaron Kirchfeld, Eva von Schaper and Kiel Porter
     Dec. 13 (Bloomberg) -- Wendel SA, France’s largest publicly
traded investment firm, is in the lead to buy nicotine-patch
maker LTS Lohmann Therapie-Systeme AG after outbidding Nordic
Capital, three people with knowledge of the matter said.
     Wendel is in final negotiations about the price with LTS
Lohmann’s owners, who are seeking about 1.3 billion euros ($1.8
billion), said two of the people, all of whom asked not to be
identified because talks are private. A decision is likely this
month and talks may still fall apart because the Paris-based
company’s offer was slightly below that target, they said.
     Nordic Capital is still interested in Andernach, Germany-
based LTS Lohmann, though it doesn’t plan to raise its offer,
said two of the people. The firm may change its mind and
increase the bid at the last moment, one of the people said.
     LTS Lohmann employs more than 1,100 people and describes
itself as the global leader in the development and manufacturing
of transdermal systems and oral thin films. The company
manufactures Novartis AG’s Exelon patch, which is used in
treating symptoms of Alzheimer’s disease. LTS Lohmann’s sales
totaled 286 million euros last year, according to the company’s
website.
     Spokeswomen for Nordic Capital in London and Wendel in
Paris declined to comment on the bidding process, as did
spokesmen for LTS Lohmann and Basel, Switzerland-based Novartis,
which owns 43 percent of the company.
     German billionaire Dietmar Hopp and investment company BWK
also own stakes. Spokesmen for both didn’t immediately return
calls seeking comment.
     The owners may struggle to get the price they want because
LTS Lohmann’s business has slowed and management hasn’t given a
clear forecast for future earnings, said one of the people.

For Related News and Information:
Top health news: HTOP <GO>
Mergers and acquisitions analysis: MA <GO>
Bloomberg Industries health-care research: BI <GO>

--With assistance from Francois de Beaupuy in Paris. Editors:
Phil Serafino, Kristen Hallam

To contact the reporters on this story:
Aaron Kirchfeld in London at +44-20-3525-8830 or
akirchfeld@bloomberg.net;
Eva von Schaper in Munich at +49-89-24447-8801 or
evonschaper@bloomberg.net;
Kiel Porter in London at +44-20-3525-2448 or
kporter17@bloomberg.net

To contact the editor responsible for this story:
Phil Serafino at +33-1-5530-6277 or
pserafino@bloomberg.net

>>> Kuka AG To hold 51% in Reis Group Holding

Kuka AG To hold 51% in Reis Group Holding
- KUKA Aktiengesellschaft and the shareholders of Reis Group have entered into a letter of intent concerning the potential participation of KUKA in Reis. According to this letter of intent, KUKA shall hold an interest of 51% in Reis Group Holding GmbH & Co. KG from January 1, 2014 onwards. Later, KUKA shall have the possibility to increase its participation to 100%.

(BFW) *SPLITTING BIG BANKS WOULD BENEFIT INDEPENDENT BROKERS: HOENIG

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BFW 12/13 13:26 *SPLITTING BIG BANKS WOULD BENEFIT INDEPENDENT BROKERS: HOENIG BN 12/13 13:26 *SPLITTING BIGBEST BANKS WOULD HELP COMMUNITY BANKS: HOENIG BN 12/13 13:25 *SPLITTING BIG BANKS WOULD BENEFIT INDPENDENT BROKERS: HOENIG BFW 12/13 13:21 *HOENIG CITES ‘CONSTANT DRUM BEAT OF SCANDAL’ AT U.S. BANKS BN 12/13 13:19 *HOENIG CITES `CONSTANT DRUM BEAT OF SCANDAL' AT U.S. BANKS BFW 12/13 13:17 *HOENIG SAYS VOLCKER ‘USEFUL,’ DOESN’T FULLY DEAL WITH RISKS BFW 12/13 13:16 *FDIC’S HOENIG: NEED TO SPLIT COMMERCIAL BANKS, BROKER-DEALERS BN 12/13 13:16 *HOENIG SAYS FULL SPLIT WOULD BENEFIT ALL PARTIES BN 12/13 13:16 *FDIC VICE-CHAIRMAN THOMAS HOENIG SPEAKING AT DUBLIN EVENT BN 12/13 13:16 *HOENIG SAYS VOLCKER `USEFUL,' DOESN'T FULLY DEAL WITH RISKS BN 12/13 13:16 *HOENIG SAYS NEED TO SPLIT COMMERCIAL BANKS, BROKER-DEALERS

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FDIC’s Hoenig Says Commercial Banks, Broker-Dealers Should Split 2013-12-13 13:19:52.687 GMT

By Donal Griffin Dec. 13 (Bloomberg) -- FDIC vice-chairman speaks at event in Dublin. * Volcker rule is useful, doesn’t fully deal with risks, Hoenig says

Link to Company News:{C US <Equity> CN <GO>} Link to Company News:{GS US <Equity> CN <GO>} Link to Company News:{JPM US <Equity> CN <GO>}

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

To contact the reporter on this story: Donal Griffin in Dublin at +353-1-523-9523 or dgriffin10@bloomberg.net

To contact the editor responsible for this story: Keith Campbell at +44-20-3525-3829 or k.campbell@bloomberg.net