>>> Kellanova and Mars have entered into a definitive agreement under which Mars

Kellanova and Mars have entered into a definitive agreement under which Mars has agreed to acquire Kellanova for $83.50/share in cash, for a total consideration of $35.9 bln, including assumed net leverage (74.50)
  • The transaction price represents a premium of approximately 44% to Kellanova's unaffected 30-trading day volume weighted average price and a premium of approximately 33% to Kellanova's unaffected 52-week high as of August 2, 2024. The total consideration represents an acquisition multiple of 16.4x LTM adjusted EBITDA as of June 29, 2024.
  • Under the terms of the agreement, Mars will acquire all outstanding equity of Kellanova for $83.50 per share in cash, representing a total enterprise value of $35.9 billion. All of Kellanova's brands, assets and operations, including its snacking brands, portfolio of international cereal and noodles, North American plant-based foods and frozen breakfast are included in the transaction.
  • Mars intends to fully finance the acquisition through a combination of cash-on-hand and new debt, for which commitments have been secured.
  • The agreement has been unanimously approved by the Board of Directors of Kellanova. The transaction is subject to Kellanova shareholder approval and other customary closing conditions, including regulatory approvals, and is expected to close within the first half of 2025. The transaction agreement permits Kellanova to declare and pay quarterly dividends consistent with historical practice prior to the closing of the transaction.
  • The W.K. Kellogg Foundation Trust and the Gund Family have entered into agreements pursuant to which they have committed to vote shares representing 20.7% of Kellanova's common stock, as of August 9, 2024, in favor of the transaction.
  • After closing, Battle Creek, MI will remain a core location for the combined organization.

>>> Europe : Brokers Upgrades & Downgrades - 14th of August 2024 V3(++)

>>> Up
* Atlas Copco Raised to Buy at ABG; PT 205 kronor
* BPER Banca Raised to Outperform at KBW; PT 6.84 euros
* Domino's Pizza Group Raised to Buy at Investec; PT 383 pence
* Grieg Seafood Raised to Buy at Pareto Securities (+)
* Henkel Raised to Add at AlphaValue/Baader (++)
* JDE Peet's Raised to Buy at Jefferies; PT 28.50 euros
* Johnson Controls Raised to Sector Perform at RBC; PT $69
* Jupiter Raised to Neutral at UBS (++)
* L'Oreal Raised to Hold at Jefferies; PT 365 euros
* Salmar Raised to Buy at Pareto Securities (+)
* Starbucks PT Raised to $100 from $80 at Gordon Haskett
* Starbucks Raised to Buy at Deutsche Bank; PT $118 (++)
* Starbucks PT Raised to $98 from $82 at Citi (++)
* Swissquote Raised to Buy at Kepler Cheuvreux (+)
* United Internet Raised to Buy at UBS (++)

>>> Down
* Aker Solutions Cut to Hold at Pareto Securities; PT 48 kroner
* Cancom Cut to Hold at DZ Bank; PT 32 euros
* Cancom Cut to Hold at Hauck & Aufhaeuser; PT 32 euros (+)
* Emerson Electric Cut to Neutral at JPMorgan; PT $115
* Hargreaves Lansdown Cut to Hold at Investec; PT 1,110 pence (++)
* Hypoport PT Cut to 220 euros from 238 euros at Bankhaus Metzler (+)
* LPP Cut to Neutral at JPMorgan; PT 16,500 zloty
* Mandatum Cut to Market Perform at KBW; PT 4.20 euros
* Mandatum Cut to Reduce at Inderes; PT 4.50 euros
* UCB Cut to Hold at KBC Securities (+)
* Sparebanken Sor Cut to Hold at DNB Markets; PT 165 kroner (++)
* Swissquote Cut to Hold at Research Partners; PT 290 Swiss francs (+)

>>> Initiation
* IMI Rated New Buy at Redburn; PT 2,380 pence

>>> Call
* BPER Banca Raised to Outperform, KBW Sees 42% Share Upside (+)
* JDE Peet’s Making Encouraging Progress, Jefferies Upgrades
* L’Oreal Upgraded to Hold at Jefferies, Caution Now Priced In
* Svitzer Rises; Citi Sees Consensus Uplift on Guidance Commentary (++)
* United Internet Gains as UBS Upgrades on Better 1&1 Outlook (+)
* Vestas Results Miss the Mark and Consensus Cuts Are Likely: RBC (+)

WSJ : Google’s New Phones Aren’t Really About the Phones

Google’s New Phones Aren’t Really About the Phones
Latest Pixel series is another distribution channel for Google’s premium AI services—plus a bit of a flex against Apple

Google has been in the smartphone business for a long while now—with seemingly little to show for it. But even the company that powers 91% of the world’s internet searches needs a little extra help sometimes.

At an event Tuesday afternoon, Google unveiled the ninth generation of its Pixel smartphone line. These are the phones that Google designs fully in-house, which typically draw high praise from reviewers but generate little in the way of actual sales. Google’s Pixel phones accounted for just under 1% of global smartphone shipments last year and the first half of this year, according to data from Counterpoint Research.

But the new phones are giving Google and its parent, Alphabet GOOGL 1.15%increase; green up pointing triangle, a chance to lean even harder into generative artificial intelligence. New AI features, such as an image-generating app called Pixel Studio and another app that scans screenshots for content, took up the majority of time at Tuesday’s event—far more than any hardware design elements. And some new features won’t even be exclusive to the Pixel, as Google wants its AI tools widely dispersed across other phones running on its Android mobile operating system. Gemini Live—a conversational AI chatbot powered by voice—is rolling out to all compatible Android phones in English on Tuesday, and Google said a version for Apple’s AAPL 1.72%increase; green up pointing triangle iOS devices is also coming soon.

The catch? Gemini Live and other AI features are only available to subscribers of Google’s Gemini Advanced plan. That plan costs $20 a month, though Google is throwing in a year of free access to buyers of its higher-end Pixel Pro, XL and Fold devices.

That might seem steep—especially since Android users are already accustomed to having Google’s well-known digital assistant free of charge. But Google has actually proven more adept at upselling once-free services than it has in selling premium smartphones. Non-advertising revenue from YouTube—much of which comes from viewers wishing to avoid ads—totaled $11.9 billion last year, which is 20% higher than Google’s total hardware revenue for the year, according to consensus estimates from Visible Alpha. YouTube’s non-ad revenue has also averaged 52% annual growth over the past four years, compared with 16% for all Google hardware, according to those same estimates.

Upselling AI on a mobile device is still no sure thing, though. Particularly given some high-profile stumbles by Google over the past 18 months, as it has raced to stay competitive with Microsoft and its anointed AI partner, OpenAI. And Google now faces the added challenge of competing with Apple’s generative AI debut. Apple Intelligence—the iPhone maker’s moniker for a set of new AI tools designed for its devices—is set to launch this fall.

But while Google may be a bit player in hardware, its products like search, Gmail and Android are effectively the world’s largest distribution network for new technologies such as generative AI. And its Pixel event Tuesday proved a bit of a flex in that regard, coming a month ahead of when Apple typically introduces its new iPhones. Rick Osterloh, who runs Google’s device business, emphasized repeatedly Tuesday that the AI services shown at the event are ready for launch—another subtle dig at the more gradual rollout expected for Apple Intelligence.

Google’s little phone business is clearly still looking to punch above its weight.

>>> US Early premarket gappers

Early premarket gappers
  • Gapping up:
    • SERV +15%, MRCY +8.8%, GRAL +8%, FLUT +6.6%, INTA +6.3%, XP +6%, SVM +4.7%, QFIN +4.7%, FATE +4.5%, CAE +4.4%, NU +3.9%, DOLE +3.1%, SLDB +2.9%, UBS +2.5%, NATL +2.4%, BITF +1.8%, ALL +1.7%, ESLT +1.7%, LUV +1.6%, NPCE +1.6%, ARM +1.4%, FIX +1.3%, SOL +1.3%, CORZ +1.2%, USFD +1.1%, LYFT +1%, RIOT +0.9%, SFL +0.8%
  • Gapping down:
    • OUST -16.1%, IBTA -8.1%, USPH -3.9%, RNA -3.8%, NAVI -2.8%, VALE -1.8%, GOOG -1%, FNV -1%

WWD : California Legislature Passes Historic Bundle of Retail Theft Bills

California Legislature Passes Historic Bundle of Retail Theft Bills
The California Legislature on Monday passed 10 bills related to retail and property crimes, sending them to Gov. Gavin Newsom's desk for final sign-off.

The California Legislature is back in session, and lawmakers are making quick work of passing a multitude of bills to target rising retail crime in the Golden State.

A total of 10 mostly bipartisan proposals addressing retail theft and property-related offenses passed through the state Assembly and Senate on Thursday, receiving final votes on Monday. By the end of the day, they were sent to Gov. Gavin Newsom’s desk for final sign-off.

The package of legislation orbits around the California Retail Theft Reduction Act (AB 2943), which was introduced in February by select committee on retail theft chair and Assemblymember Rick Zbur (D-L.A.).

AB 2943 foists some responsibility onto online marketplaces, as sellers would be required to maintain records proving their products were obtained legally. Larger retail businesses would also be required to provide data to law enforcement to help strengthen crime laws and prevent stolen stuff from being sold on the web.

The bill package, which operates under the header of “Californians Against Retail Theft,” also includes AB 1779, which allows California district attorneys to prosecute theft cases across multiple jurisdictions at once, AB 1802, which removes the sunset provision for the state’s organized retail crime statute, making a statewide California Highway Patrol (CHP) criminal task force permanent, and AB 1972, which expands that CHP task force to include cargo theft.

Passed in the State Senate on Monday was SB 1144, which would require online marketplaces to establish and maintain policies for prohibiting the sale of stolen goods. Meanwhile, SB 1242 imposes longer sentences on individuals convicted of setting reckless fire to a retailer’s property in order to commit organized retail crime, and SB 1416 beefs up sentences for those convicted of selling, exchanging or returning stolen goods. SB 982 eliminates the statute of limitations for prosecuting organized retail theft.

The lawmakers behind the bundle of bills have been chomping at the bit to get the proposals passed as a means of thwarting the advancement of a ballot initiative that would imperil one of the state’s most controversial laws: Prop. 47. But despite the crime reduction proposals’ rapid advancement in recent days, Prop. 36, the Homelessness, Drug Addiction and Theft Reduction Act, is still headed to the polls.

If passed, the petition will most notably revise the 2014 law that established $950 as the felony threshold for theft. “Currently, [under Prop. 47] theft of items worth $950 or less is generally a misdemeanor,” according to the California Legislative Analyst’s Office. “Proposition 36 makes this crime a felony if the person has two or more past convictions for certain theft crimes (such as shoplifting, burglary or carjacking).” The resulting sentence could be up to three years in a county jail or state prison.

Prop. 36 would also lengthen certain felony sentences for theft or property damage by up to three years if three or more people committed the crime together — a move that the authoring advocacy group, Californians for Safer Communities, believes will deter organized retail theft.

The petition is backed by Mayor London Breed of San Francisco, Mayor Matt Mahan of San Jose and Assemblymember James Ramos of San Bernadino, as well as dozens of other policymakers and law enforcement groups. It has reportedly received signatures from hundreds of thousands of California voters, sealing the deal for its inclusion on the November ballot.

The lawmakers behind the Californians Against Retail Theft package, as well as Newsom, don’t want to see Prop. 47 repealed or picked apart, as they believe the 10-year-old law has been an instrumental element of the state’s prison reform strategy.

In 2010 when it passed — also as a ballot initiative decided by voters — Prop. 47 was billed as a way to reduce prison overcrowding. Reducing the charges for certain non-violent drug- or property-related crimes has saved the state more than $800 million in funds that would have been spent on housing prisoners, Newsom’s office said.

“What’s happening in our neighborhoods is unacceptable and we must act expeditiously, but we must also look at facts and find solutions that will actually work,” Zbur said on the Assembly floor Monday.

“We need to make sure we’re pursuing reforms that are effective at targeting retail crime while avoiding a rollback of criminal justice reforms that have been successful at keeping our communities safe and reduce the human cost of imprisoning people for minor infractions.”

The governor is reportedly planning to sign the bills quickly, though his office has not indicated a timeline.

>>> Europe : Brokers Upgrades & Downgrades - 14th of August 2024 V2(+)

>>> Up
* Atlas Copco Raised to Buy at ABG; PT 205 kronor
* BPER Banca Raised to Outperform at KBW; PT 6.84 euros
* Domino's Pizza Group Raised to Buy at Investec; PT 383 pence
* Grieg Seafood Raised to Buy at Pareto Securities (+)
* JDE Peet's Raised to Buy at Jefferies; PT 28.50 euros
* Johnson Controls Raised to Sector Perform at RBC; PT $69
* L'Oreal Raised to Hold at Jefferies; PT 365 euros
* Salmar Raised to Buy at Pareto Securities (+)
* Starbucks PT Raised to $100 from $80 at Gordon Haskett
* Swissquote Raised to Buy at Kepler Cheuvreux (+)

>>> Down
* Aker Solutions Cut to Hold at Pareto Securities; PT 48 kroner
* Cancom Cut to Hold at DZ Bank; PT 32 euros
* Cancom Cut to Hold at Hauck & Aufhaeuser; PT 32 euros (+)
* Emerson Electric Cut to Neutral at JPMorgan; PT $115
* Hypoport PT Cut to 220 euros from 238 euros at Bankhaus Metzler (+)
* LPP Cut to Neutral at JPMorgan; PT 16,500 zloty
* Mandatum Cut to Market Perform at KBW; PT 4.20 euros
* Mandatum Cut to Reduce at Inderes; PT 4.50 euros
* UCB Cut to Hold at KBC Securities (+)
* Swissquote Cut to Hold at Research Partners; PT 290 Swiss francs (+)

>>> Initiation
* IMI Rated New Buy at Redburn; PT 2,380 pence

>>> Call
* BPER Banca Raised to Outperform, KBW Sees 42% Share Upside (+)
* JDE Peet’s Making Encouraging Progress, Jefferies Upgrades
* L’Oreal Upgraded to Hold at Jefferies, Caution Now Priced In
* Vestas Results Miss the Mark and Consensus Cuts Are Likely: RBC (+)

>>> Stoxx 600 Pre-Market Indications

  • TUI (TUI1 TH) +6.6%
    • TUI 3Q Underlying Ebit Beats Estimates
  • Talanx (TLX TH) +2.5%
    • Talanx 1H Ebit EU2.52B
  • K+S (SDF TH) +2.1%
    • K+S Narrows FY Ebitda Forecast
  • Wolters Kluwer (WOSB TH) +1.2%
  • Siemens Energy (ENR TH) +1.2%
  • Neste (NEF TH) -1.3%
  • Prosus (1TY TH) -1.3%
  • Glencore (8GC TH) -1.5%
  • RWE (RWE TH) -1.6%
    • RWE’s First-Half Earnings Drop After Decline in Power Prices
  • Wienerberger (WIB TH) -5.4%
    • Wienerberger 2Q Revenue Beats Estimates, Lowers FY Forecast (1)