WSJ : Telefonica, KPN Units to Submit Antitrust Documents

Telefonica, KPN Units to Submit Antitrust Documents in Nov -- Sources

Telefonica SA's (TEF) German mobile unit and KPN subsidiary E-Plus are likely to submit documents to European Union regulatory authorities by mid-November seeking approval for Telefonica Deutschland's purchase of E-Plus, people familiar with the matter told The Wall Street Journal Deutschland this week.

E-Plus and Telefonica Deutschland, which does business under the brand O2, are finalizing their antitrust proposal and are also in regular contact with Germany's national regulatory authorities, the people added.

It looks like there are no major obstacles for the deal, the people said, but that might change during an EU probe. "So far talks with the EU Commission have been constructive," the people said.

KPN agreed in July to sell E-Plus to Telefonica Deutschland in an 8.1 billion euro ($11.07 billion) part cash-part shares deal. KPN won shareholder backing for the sale about two weeks ago, leaving the fate of the deal in the hands of antitrust authorities.

Last year, in another European cross-border telecom deal, the combined company resulting from the sale of France Telecom's (FTE) Austrian unit Orange Austria GmbH to a subsidiary of Hutchison Whampoa Ltd. was ordered to sell some of its spectrum rights to gain antitrust approval.

Write to Archibald Preuschat at archibald.preuschat@dowjones.com

>>> US Gapping up

Gapping up

In reaction to strong earnings/guidance: ZHNE +25.4%, ALGN +16.5%, (also upgraded to Buy from Hold at Cantor Fitzgerald), CPSS +9.8% (light volume), GOOG +9.2%, CMG +7.7%, CPHD +6.8%, ATHN +4.3%, HCA +4.1%, BHI +3.8%, MS +3.2%, PH +3%, (light volume), SLB +2.8%, GE +2.5%, COF +0.5%.

M&A news: WTSL +5.6% (Wet Seal considering sale of the company, according to The Deal story out yesterday), CHK +2.1% (reports that BP and Royal Dutch Shell may be interested in the company ), BBRY +1.2% (late spike on WSJ story suggesting renewed Lenovo (LNVGY) interest).

A few financial related names showing strength: PUK +3.2%, IBN +1.3%, BAC +0.7%, DB +0.6%.

Select mining stocks trading higher: RIO +1.5%, BBL +1.2%, BHP +0.8%, GOLD +0.6%.

Many tech/internet names are higher following GOOG results: QIHU +1.5%, YNDX +1.2%, SOHU +1.1%, BIDU +1%, SINA +0.5%, ASML +-1.6%,

Solar names trading higher: RSOL +3.6%, LDK +3.1%, CSIQ +2.7%, JKS +2.1% (Signs Strategic Agreement for 120MW with the local authority in Electromechanical Industrial Park, Zhenjiang New Area in Jiangsu Province), SPWR +1% (E20/327 Solar Panels Achieve Lowest Potential Induced Degradation),

Other news: ANAC +18.8% (Anacor Pharma announces favorable ruling in its arbitration with Valeant Pharmaceuticals), GAIA +7.1% (Cinedigm to acquire Gaiam's entertainment unit for $51.5 mln), CPE +2.6% (enteres into an agreement with W&T Offshore (WTI) to sell its interests in the Medusa field and Medusa Spar and substantially all of its Gulf of Mexico shelf assets, for total cash consideration of $100 mln), FB +2.3% (sympathy strength with GOOG, still checking for anything additional), CVM +2.3% (receives notification from NYSE Regulation dated Oct 17, 2013 that the co is now considered to have regained compliance with the listing requirements of the NYSE MKT Company Guide, HIMX +2% (still checking), CF +1.5% ( increases quarterly dividend by 150% to $1.00 per share), THC +1.2% (following HCA results), DEO +0.9% (continued strength following earnings), TSLA +0.8% (still checking), OXY +0.4% (announces initial phase of strategic review; Board of Directors authorized pursuing sale of a minority interest in the Middle East/North Africa operations).

Analyst comments: AMZN +2.7% (Amazon.com upgraded to Buy from Neutral at UBS), BTU +2.3% (Peabody Energy upgraded to Outperform from Market Perform at BMO Capital), VMW +2.2% (VMware upgraded to Overweight from Neutral at JPMorgan), UNP +1.2% (Union Pacific upgraded to Buy from Neutral at Goldman), VZ +1% (Verizon upgraded to Buy from Hold at Deutsche Bank), TMUS +0.9% (added to Conviction Buy List at Goldman), INTU +0.5% (Intuit upgraded to Buy from Neutral at BofA/Merrill),

>>> US Gapping down

Gapping down

In reaction to disappointing earnings/guidance: ACTG -17.4%, AMD -9.5%, TXT -6.3%, ISRG -6%, BGS -3.1%, RMBS -2.1%, (light volume), STI -1.9%, HON -0.9%.

Other news: PSDV -47.4% and ALIM -38.7% (receive Complete Response Letter For ILUVIEN), ARIA -29.8% (announces discontinuation of the Phase 3 Epic Trial of Iclusig in Patients with Newly Diagnosed Chronic Myeloid Leukemia), VLCCF -10.6% (announced a public offering of common shares), CIDM -8.5% (intends to offer and sell in an underwritten public offering 7,904,340 registered shares of Class A common stock, to acquire Gaiam's entertainment unit for $51.5 mln), EVEP -5.1% (announces public offering of 5 mln of its common units representing limited partner interests), TAM -5.1% (still checking), CMLP -2.7% (commenced an underwritten public offering of 14,000,000 common units representing limited partner interests), SAP -1.8% and ASML -1.6% (still checking), OMER -0.5% (files for $100 mln mixed securities shelf offering to replace expiring universal shelf registration statement), .

Analyst comments: SWIR -3.5% ( downgraded to Mkt Perform from Outperform at Raymond James), AMRN -2% (downgraded to Neutral from Buy at Citigroup), MPWR -1.7% (downgraded to Market Perform from Outperform at Wells Fargo), IRF -1.6% (downgraded to Market Perform at Wells Fargo), PNRA -1.3% (downgraded to Neutral from Outperform at Wedbush ), BAX -0.5% (downgraded to Market Perform from Outperform at Raymond James, downgraded to Equal-Weight from Overweight at Morgan Stanley)

>>> US Early premarket gappers

Early premarket gappers

Gapping up: ZHNE +16.1%, ALGN +14%, CMG +7.9%, GAIA +7.1%, CPHD +6.8%, GOOG +6.3%, HCA +4.1%, CPSS +3%, CPE +2.6%, BBRY +2.4%, FB +2.3%, HIMX +2%, COF +2%, CF +1.5%, QIHU +1.5%, FB +1.5%, MS +1.3%, IBN +1.3%, THC +1.2%, YNDX +1.2%, BBRY +1.2%, SOHU +1.1%, BIDU +1%, DEO +0.9%, TSLA +0.8%

Gapping down: ACTG -13.4%, VLCCF -10.6%, CIDM -8.5%, AMD -7.1%, ISRG -6%, EVEP -5.1%, CMLP -2.7%, SAP -1.8%, ASML -1.6%, OMER -0.5%, LVS -0.5%

(BoA-ML) The Flow Show: Companies are safer than Countries

(Full note attached) * Asset Class Flows - Equities: $17.2bn inflows ($14.6bn via ETF's) (Table 1) - Bonds: $3.3bn outflows (3 straight weeks) - MMF: outsized $70bn outflows (same size as Aug'11 outflows) - Precious metals: $1.1 outflows (largest outflows in 14 weeks)

* Equity Flows - US: $10.6bn inflows (all via ETF's - SPY, IWM) (breaks 3-week outflow streak) - Europe: 3rd largest weekly inflows on record ($3.4bn) (16 straight weeks) - EM: $0.9bn inflows (inflows in 5 out of past 6 weeks) (Table 2) - Japan: $0.6bn inflows (6 straight weeks)

*Fixed Income Flows - 69 straight weeks of inflows to floating-rate debt ($0.6bn) (Table 3) - 6th straight week of inflows to HY bond funds ($1.7bn) - 6th straight week of redemptions from govt/tsy funds ($0.9bn) - $2.0bn outflows from IG bond funds - $0.5bn outflows from EM debt funds (3 straight weeks) - 27 straight weeks of outflows from TIPS ($0.2bn)

>>> US Gapping up

Gapping up

In reaction to strong earnings/guidance: SVU +6.4%, BTU +4.5%, WGO +3.7%, VZ +3.5%, SYT +3.2%, STLD +2.8% (light volume), NE +2.4%, SNDK +1.8%, LHO +1.7% (light volume), DEO +1.7% (light volume), CYS +1.6%, SLM +1.4%, NTCT +1.4% (light volume), AXP +0.3%, EXPO +0.1%.

Metals/mining stocks trading higher: HL +4.5%, MUX +4.3%, AUY +4.3%, EGO +4.2%, SLW +3.4%, GG +2.8%, ABX +2.7%, AU +2.4%, NEM +2.4%, SLV +2.4%, GDX +2.2%, GOLD +2.1%, GLD +2.1%, GFI +1.1%, IAG +0.9%, .

Select oil/gas related names showing strength: STO +1.2%, TOT +0.8%, BP +0.5%.

Other news: IRE +3.5% (still checking),UN +2.3% (still checking, NSRGY/DEO reported),DVAX +2.2% (reports on HEPLISAV regulatory path: 'finalized a study design' ),ACI +1.8%/ WLT +2.5% (on BTU results),NOK +1.3% (still checking on anything specific),AZN +1.2% and SNY +1.1% (RHHBY reported).

Analyst comments: SCTY +3.7% (initiated with an Overweight at JPMorgan),AAP +2% (light volume, upgraded to Outperform from Neutral at Wedbush),CLF +1.4% ( upgraded to Market Perform at Cowen),BBY +1% (upgraded to Outperform from Perform at Oppenheimer),DDD +0.9% ( tgt to $61 from $52 at Piper Jaffray)

>>> US Gapping down

Gapping down

In reaction to disappointing earnings/guidance: SCSS -26.4% (also downgraded at Keybanc and Piper), IBM -6.3% (IBM downgraded to Neutral from Buy at UBS), USG -5.6%, RDA -5.3%, XLNX -4.6%, EBAY -4.2%, UNH -2.9%, GS -2.5%, BX -1.9%, DGX -1.7%, FLR -0.9%, EWBC -0.9%.

Select financial related names showing weakness following GS results: BCS -1.8%, MS -1.2%, C -0.7%, BAC -0.4%.

Select tech names lower following IBM results: HPQ -1.2% SI -1% , ORCL -0.7% (acquires Compendium; financial terms not disclosed ), MSFT -0.1%

A few names are lower with XLNX/CY: AMD -2.2%, TXN -0.7%, ARMH -1.8%.

Other news:AMRN -61.3% (Amarin confirms FDA Advisory Commitee voted 9 to 2 against approval of Vascepa for AHCNOR indication), TPX -4% (following SCSS results), MFRM -3.9% (following SCSS results), AMZN -1.3% (on EBAY results), COST -0.7% (disclosed in 10-K it received from DEA subpoenas and administrative inspection warrants concerning the Company's fulfillment of prescriptions ), EXP -0.7% (following USG results),LPX -0.6% (following USG results), CTXS -0.4% ( CEO Mark Templeton to Take Temporary Leave of Absence; David Henshall to Serve as Acting CEO),. .

Analyst comments: ASML -1.7% (downgraded to Neutral from Overweight at HSBC, downgraded to Equal-Weight from Overweight at Morgan Stanley), SWK -1% (downgraded to Equal Weight at Morgan Stanley; downgraded to Underweight from Equal Weight at Barclays), BAC -0.8% (downgraded to Outperform from Strong Buy at Raymond James), CSX -0.6% (downgraded to Market Perform from Outperform at BMO Capital Mkts)