TheChek News Flow

BGZ could be sold this year; BNP Paribas offers EUR 1bn

Rabobank, the Dutch owner of BGZ (Bank Gospodarki Zywnosciowej), will select a buyer for the Polish bank at the turn of November and December, Puls Biznesu reported. The Polish daily cited a source close to the negotiations, who added that the sale deal could be signed this year.

Puls Biznesu also learned that Rabobank is in parallel talks with all interested bidders. According to the source, apart from three bidders - Santander, UniCredit and BNP Paribas - there are other interested parties, names of which Puls Biznesu was unable to establish.

According to unofficial information, BNP Paribas submitted an offer of EUR 1bn. Polish lender Pekao (a part of UniCredit) and Santander have placed lower offers, a representative of an unspecified bank told Puls Biznesu.

The paper said, citing unofficial sources, that Rabobank wants to complete the transaction as soon as possible. The article also reported that Credit Agricole, Erste Bank and Intesa SanPaolo , which have been interested in the Polish banking sector, are whispered as potential buyers. The article added that Polish listed insurer PZU had been also interested in the transaction.

Source Puls Biznesu

Spending on U.S. shale drilling should pick up next year, sparking fast profit growth for the Houston-based oil services outfit.

Halliburton is poised for a rapid rise in profits as oil companies ramp up spending to tap new shale finds. That could send its shares more than 40% higher within a year. The U.S. is enjoying an oil production boom driven by new drilling technology, which has unlocked vast amounts of oil and gas from porous rock. Early on, that proved lucrative for oil services companies. More recently, too many of them competed for work in a handful of major shale deposits in states like Texas, North Dakota and Ohio, which drove down service prices and profit growth. Halliburton (ticker: HAL) reported a profit decline in 2012 and is expected to grow earnings per share just 4% this year, according to analysts polled by FactSet. Its shares more than doubled in two years ended July 2011 to peak at over $57. Since then they've lost ground and recovered, trading recently near $52. Halliburton and rivals like Baker Hughes (BHI) and Schlumberger (SLB) have trimmed costs to preserve profits. At the same time, recent U.S. shale finds promise to spread demand for drilling services more broadly, to states like Colorado and Louisiana and to new parts of Texas. Industry spending on exploration and production should rise 6% this year, predicted Goldman Sachs in a Monday note to investors. That bodes particularly well for companies like Halliburton, which has heavy exposure to onshore production services. Its earnings per share should rise at a compounded rate of 34% per year through 2015, according to Goldman. The Wall Street consensus shows earnings totaling $3.13 this year and jumping to $5.13 by 2015. The fast growth could catch stock investors by surprise. At 16.6 times this year's earnings estimate, Halliburton shares look fairly priced. But those earnings represent a slow patch. The stock trades at just 10.1 times the 2015 estimate. Cowen and Company analyst James Crandell predicts the stock will hit $75 in a year, a 44% increase. That's based on the stock rising to 14.3 times his 2015 earnings estimate of $5.25 a share. Crandell predicts gains of more than 20% for Schlumberger and Baker Hughes, too.

Halliburton will host an analyst day on Nov. 6 when it will likely update Wall Street on its colorfully named efficiency drives, Frac of the Future, aimed at drilling, and Battle Red, a corporate cost overhaul. It may also report on changes in service demand and pricing. If the news is promising, it could prompt Wall Street to raise its near-term earnings targets, giving shares a quick lift. Several drillers have recently released capital spending budgets for next year that show healthy growth. Halliburton collects more than half its revenue in North America but is also benefitting from strong growth in Russia, the North Sea, Saudi Arabia and Norway. Activity in Brazil and Mexico has been slumping but should bottom out in the first quarter of next year and recover thereafter, according to Cowen's Crandell. Shares carry only a modest dividend yield of 1%. Halliburton last quarter splurged to repurchase more than 7% of its outstanding shares. If profits jump as much as expected in coming years, it will likely have gotten an excellent deal. In short, Halliburton is a well-oiled money maker that should reward investors.

Link : {http://bit.ly/19RrM6l}

Man buys $27 of bitcoin, forgets about them, finds they're now worth $886k

Bought in 2009, currency's rise in value saw small investment turn into enough to buy an apartment in a wealthy area of Oslo

The meteoric rise in bitcoin has meant that within the space of four years, one Norwegian man’s $27 investment turned into a forgotten $886,000 windfall. Kristoffer Koch invested 150 kroner ($26.60) in 5,000 bitcoins in 2009, after discovering them during the course of writing a thesis on encryption. He promptly forgot about them until widespread media coverage of the anonymous, decentralised, peer-to-peer digital currencyin April 2013 jogged his memory. Bitcoins are stored in encrypted wallets secured with a private key, something Koch had forgotten. After eventually working out what the password could be, Koch got a pleasant surprise:  "It said I had 5,000 bitcoins in there. Measuring that in today's rates it's about NOK5m ($886,000)," Koch told NRK.

In April 2013, the value of bitcoin peaked at $266 before crashing to a low of $50 soon after. Since then, bitcoin has seen large fluctuations in its value, most recently following the seizure of online drugs marketplace Silk Road, plummeting before jumping $30 in one day to a high of $197 in October. Koch exchanged one fifth of his 5,000 bitcoins, generating enough kroner to buy an apartment in Toyen, one of the Norwegian capital’s wealthier areas.

Typically bitcoins are bought using traditional currency from a bitcoin "exchanger", although due to strict anti-money laundering controls, the process can can be tricky. A user can then withdraw those bitcoins by sending them back to an exchanger like Mt Gox, the best known bitcoin exchange, in return for cash. However, bitcoin is gaining more and more traction within the physical world too. It is now possible to actually spend bitcoins without exchanging them for traditional currency first in a few British pubs, including the Pembury Tavern in Hackney, London, for instance. On 29 October, theworld's first bitcoin ATM also went online in Vancouver, Canada, which scans a user's palm before letting them buy or sell bitcoins for cash.  A small group of hardcore users also generate extra bitcoins by "mining" for them – a process that requires computers to perform the calculations needed to make the digital currency work, in exchange for a share of the built-in inflation. Mining is a time-consuming and expensive endeavour due to the way the currency is designed. Each subsequent bitcoin mined is more complex than the previous one, requiring more computational time and therefore investment through the electricity and computer hardware required.

The pressure is mounting on Oracle’s Larry Ellison. Just ahead of the company’s Thursday annual meeting, CalSTRS, one of the country’s largest pensions, joined New York City’s pensions in calling for a change in the tech giant’s board to stop what it considers Ellison’s runaway pay. It is the first time long-time Oracle shareholder CalSTRS has gone public with its opposition. “We have severe concerns about executive compensation and proper board accountability at Oracle,” CalSTRS said in a letter sent Tuesday to fellow Oracle shareholders that was also signed by two large European pensions. Ellison, who owns 25 percent of Oracle’s shares, has pocketed $851 million from stock options over the last six years, according to a recent pay survey. Critics say the options are not performance-based. CalSTRS — based in Oracle’s backyard — is supporting New York City’s nonbinding proposal calling for performance-driven compensation. New York City, in its proposal, said, “The company’s executive compensation program is poorly structured and is not significantly performance-driven.” Ellison’s stock options “simply vest with time and not on the achievement of performance hurdles,” NYC says. GMI Ratings in a 2013 CEO Pay Survey reported that Ellison has made more than $851 million in profits from options over the last six years, stemming from annual grants. “It appears Oracle is putting Ellison’s interests ahead of ours,” Michael Garland, the New York City Comptroller’s executive director for corporate governance, told The Post. Over the last twelve months, Oracle’s shares have risen less than 10 percent, closing Tuesday at $33.71. The Redwood City, Calif., company counters in public filings that the stock options are performance-driven, since they only have value if the share price rises. The company says $100 invested in May 2008 would be worth $153.38 in May 2013. Even though the vote is nonbinding, Garland said, “I think the clock will start ticking after Thursday’s vote” for real change to occur. CalSTRS, in its letter, goes further, saying, “We consider it is in the best interests of our beneficiaries to withhold support from all nominees to the board at the 2013 annual shareholder’ meeting. Consistent with this view, we further consider that it is in the best interests of our beneficiaries to support the shareholder proposal seeking the appointment of an independent chairman to the board.” New York City said it is voting against the three directors on the board’s compensation committee. The city’s pensions owned 10.3 million shares of Oracle, worth $330 million, as of the record date. CalSTRS owned 11.5 million shares at a market value of $382 million.

Volkswagen 3Q Ebit EU2.8b, est. EU2.72b. • Rev. EU47b, est. EU49.6b • Outlook confirmed for 2013 op. profit unchanged y/y, higher rev. and unit sales • Call: 2pm, CET 44 203 427 1921/646 254 3376

Air France-KLM may let stake fall via capital increase and then take majority stake at future point

Air France-KLM could allow its 25% stake in Italian airline Alitalia be diluted by not taking part in a EUR 300m capital increase, but then might take a majority stake afterwards if a new due diligence phase turns out to be positive, Italian language daily Milano Finanza reported. The unsourced report said that if in the case that due diligence is satisfactory, Air France will buy the unsubscribed portion of the capital increase with the aim of taking a majority stake. The report said that this would include the shares held by Intesa Sanpaolo and Unicredit in their role as guarantors of the capital increase.

The report said that Air France is likely to take a month to carry out due diligence. The report added that Air France will also insist on not paying a premium for the shares, and having a say in drawing up the industrial plan and in debt renegotiations.

The report noted that the deadline to subscribe to the capital increase is 16 November while unsubscribed parts of the capital increase will be available up to 31 December.

Source Milano Finanza daily edition

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BN 10/30 07:07 *GENEL ENERGY HAD CASH BALANCE AT END-SEPTEMBER OF $805M BN 10/30 07:06 *GENEL ENERGY SEES '13 KRI CAPEX AT EST. $450M BN 10/30 07:05 *GENEL FORECASTS '13 CAPEX TOWARD TOP END OF $500-550M GUIDANCE BN 10/30 07:05 *GENEL SEES FULL OIL EXPORTS VIA KRI EXPORT SYSTEM IN 1Q, 2014 BN 10/30 07:03 *GENEL KEEPS '13 REVENUE GUIDANCE UNCHANGED AT $300M-400M BN 10/30 07:03 *GENEL KEEPS '13 OUTPUT GUIDANCE UNCHANGED AT 45-55,000BOPD BN 10/30 07:03 *GENEL ENERGY 3Q AVG GROSS OUTPUT FROM TAWKE FIELD 61,000BOPD BN 10/30 07:02 *GENEL ENERGY 3Q AVG TRUCKED EXPORTS VIA TURKEY 29,000BOPD BN 10/30 07:01 *GENEL ENERGY 3Q AVG GROSS OUTPUT AT TAQ TAQ 85,000BOPD BN 10/30 07:01 *GENEL ENERGY 3Q AVG NET WORKING INTEREST OUTPUT RISES 10% Y/Y BN 10/30 07:01 *GENEL ENERGY 3Q AVG NET WORKING INTEREST OUTPUT 53,000BOPD BN 10/30 07:00 *GENEL ENERGY INTERIM MGMT STATEMENT

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Genel Energy 2013 Production, Rev. Guidance Unchanged 2013-10-30 07:08:11.774 GMT

By James Cone Oct. 30 (Bloomberg) -- 3Q net working interest production avgd 53,000bopd, +10% y/y. * Gross Taq Taq (44% working interest) production avgd c.85,000bopd; Gross Tawke (25% working interest) c.61,000bopd * 2013 production guidance unchanged at 45-55,000bopd; rev. guidance unchanged at $300-400m. * Cash at end-September $805m * 2013 capex forecast to be toward top end of $500-550m guidance * Co. says finalization of Turkey-KRI 10bcma Gas Sales Agreement is expected in 1Q 2014

Link to Statement:{NSN MVGZGT3HHEDC <GO>} Link to Company News:{GENL LN <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: James Cone at +44-20-7673-2572 or jcone@bloomberg.net

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Air France May Not Take Part in Alitalia Cap Increase, MF Says 2013-10-30 07:04:20.807 GMT

By Chiara Vasarri Oct. 30 (Bloomberg) -- MF reports without saying how it got the information. * Air France considering not taking part in capital increase, whose subscription deadline is Nov. 16: MF * Co. wants to have a say on industrial plan, debt renegotiation before making any decision: MF * Co. may decide to increase its stake in Alitalia at later stage by taking unoptioned shrs, including those held by banks: MF * Air France already owns 25 percent of Alitalia and is a partner in the Skyteam alliance * NOTE: Air France Demands Alitalia Overhaul Before Considering Merger {NSN MUUXWB6JTSEO <go>}

Link to Company News:{19941Z US <Equity> CN <GO>} Link to Company News:{AZA IM <Equity> CN <GO>} Link to Company News:{AF FP <Equity> CN <GO>} Link to Company News:{POST IM <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: Chiara Vasarri in Rome at +39-06-4520-6325 or cvasarri@bloomberg.net

To contact the editor responsible for this story: Dan Liefgreen at +39-02-8064-4204 or dliefgreen@bloomberg.net

US MArket continue to close higher, with Tech still lagging the rest of the market...AAPL -2.5%...IBM +2.7% on $15b share buyback...Semi best perf of Tech...Japan industrial production returns to growth in September after stumbling in August; Govt raises its assessment on output for the first time in 7 months, noting production is "picking up"; BOJ on tap for policy statement tomorrow..Press spec, on BoJ raising FY14/15 GDP forecasts...Nikkei +1.23%...China money market rates remain elevated (7d repo +55bps @ 5.6%), though the rise has paused ahead of omorrow's PBoC decision on open market operations Shanghai +1.31%...NZD falls on news of potential Moody's dwg from AAA to AA (like Fitch & S&P)... German Financial Industry Officials Reject Transaction Tax: Bild...

Eu$ 1.3744 S&P fut: 10bps higher European Fut.10bps higher

Keep an eye on : - ALU FP : Nokia Solutions and Networks can afford large acquisitions-Kauppaleht - ABG LN : African Barrick 3Q Net Drops; FY Gold Output to Exceed Forecast - CS FP : Axa Plans San Francisco Office to Monitor Tech Startups: Echos - BNP FP : BNP Offers All Employees EU1,000 Bonus in Wage Talks: Les Echos - CLN VX : Clariant 3Q Sales Miss Estimates, to Sell Leather Unit to Stahl - DB1 GY : Deutsche Boerse 3Q Net Rev. €457.9m Vs Est. €457.8m, 3Q Ebit €101m non comp. Withest. €222.4m, Confirms FY net rev. forecast - EAD FP : raised to buy to A- by Fitch, outlook stable - EAD FP : Germany Made >EU1b on EADS Stake as Shares Rose, Welt Says - EBS AV : Erste Bank 3Q Net Income EU129m; Est. EU133m - ENI IM : Eni 3Q Adj. Net EU1.17b Beats Est. EU998m; Production 1.65mboe/d, Sees 2013 Output Lower Than 2012 on Libya, Nigeria - ETL FP : 1Q €323,5m vs Est.€325,5m, confirmed outlook. - FUM1V FH : Finnish Government Won’t Buy Fortum Distribution Assets, HS Says - IPN FP : Ipsen 3Q Sales Beat Ests.; Confirms 2013 Financial Targets - KER FP : to cut 670 positions at la Redoute - LUX IM : Q3 Rev. In line, Net Beats, may look for acquisitions in 2014 - MC FP : invests EUR30m in FRench book publisher Gallimard for a 9.5% stake - EMG LN : Man Group rumoured to be eyed for GBP 1.50-per-share bid from BofA - MKS LN : M&S Slows Decline in Share of Clothing Market, FT Reports - MMT FP : M6-Metropole 3Q Rev. EU293.3m vs EU283m Y/y - ORK NO : Orkla 3Q Ebita, Sales Boosted by Consumer Goods Co. Purchases - POH1S FH : Pohjola Bank 3Q Net Interest Income Drops; Cuts Some Forecasts - QIA GY : Qiagen 3Q Rev., EPS Beat Ests.; Confirms 2013 Forecast - RBI AV : shareholders will have to cut expectations on div. ( Bbg Dvd est : €1,17) - SAN FP : Sanofi 3Q Business EPS Misses Est.; Sees 2013 EPS at Lower End, 3Q Vaccines Sales Down 7.2% on Manufacturing Issues - SBS GY : Stratec Biomedical 3Q Ebit Margin 16.2%; Confirms 2013 Forecast - SCH NO : Schibsted 3Q Net Loss Bigger Than Est.; Keeps Online Investments - SNC PL : Sonaecom offers to buy 24,16% of its own stock, will offer the equivalent of €24,5/share part in Zon Optimus & part in cash - STB NO : Storebrand 3Q Net Rises More Than Est., Sees Further Cost Cuts - STCBV FH : Stockmann 3Q EPS, Sales Meet Ests.; Reduces Full-Year Forecasts - STL NO : Statoil 3Q Adj. Net Income NK12.1b; Est. NK11.9b, 3Q Net Attrib. NOK14.3b; Refining Margin $3.8/bbl, Boosts 2013 Expl Spending to $3.75b Vs $3.5b - SWMA SS : Swedish Match open to disposing Scandinavian Tobacco Group - TLV1V FH : Finnish state evaluating Talvivaara rescue package-Helsingin Sanoma - TOM2 NA : TomTom Raises Full-Year Forecast for Adjusted Earnings Per Share - UMI BB : Umicore’s Recycling to Face Challenges; Citi Cuts to Sell - WDF IM : Buy World Duty Free, May Lead Industry Consolidation, Citi Says - WDI GY : Wirecard 3Q Sales Rise 23%, Ebitda Up 17%; Confirms 2013 Outlook - YTY1V FH : YIT 3Q Profit Misses Ests.; Russian Housing Starts Increase

Up

*AQUARIUS PLATINUM RAISED TO NEUTRAL VS SELL AT GOLDMAN *BP RAISED TO BUY VS HOLD AT SOCGEN *FUGRO CUT TO SELL VS NEUTRAL AT GOLDMAN *NEXITY RAISED TO BUY VS HOLD AT SOCGEN *POSTNL RAISED TO BUY VS NEUTRAL AT BOFAML *SBM OFFSHORE CUT TO NEUTRAL VS BUY AT GOLDMAN *TECHNIP CUT TO SELL VS NEUTRAL AT GOLDMAN *UNICREDIT RAISED TO OVVERWEIGHT VS NEUTRAL AT HSBC *YOOX RAISED TO BUY VS NEUTRAL AT CITI

Down

*AZIMUT CUT TO HOLD VS BUY AT DEUTSCHE BANK *GAS NATURAL CUT TO NEUTRAL VS BUY AT CITI *NMC HEALTH CUT TO HOLD VS BUY AT DEUTSCHE BANK *PETROFAC RAISED TO BUY VS NEUTRAL AT GOLDMAN *PROSAFE RAISED TO NEUTRAL VS SELL AT GOLDMAN *UMICORE CUT TO SELL VS NEUTRAL AT CITI *VISCOFAN CUT TO SELL VS HOLD AT SOCGEN *VOESTALPINE CUT TO HOLD VS BUY AT DEUTSCHE BANK *VOLVO CUT TO SELL VS HOLD AT DEUTSCHE BANK * UMICORE CUT TO SELL AT CITI

PT Change

*Ansaldo PT Raised to EU7.7 vs EU7.5 at Mediobanca *AUTOGRILL PT RAISED TO EU7.9 VS EU6.25 AT CITI; KEPT AT BUY

Initiation

*AMER SPORTS RATED NEW BUY AT CITI, PT EU19 *GLANBIA RATED NEW BUY AT CANTOR; PT EU11.9 *HANNOVER RE RATED NEW SECTOR PERFORM AT RBC; PT EU60 *SCOR SE RATED NEW OUTPERFORM AT RBC; PT EU30 *STEINHOFF RATED NEW NEUTRAL AT JPMORGAN *TEKNOSA RATED NEW BUY AT GOLDMAN *WORLD DUTY FREE RATED NEW BUY AT CITI, PT EU9.30

Country Sector Stock Call

*Buy World Duty Free, May Lead Industry Consolidation, Citi Says *NOKIA ADDED TO EUROPE 1 LIST AT BOFAML *Qiagen Shrs Seen Up on Demand, Installations, Jefferies Says *Umicore’s Recycling to Face Challenges; Citi Cuts to Sell