FT : German police seal off air base over sabotage fears

German police seal off air base over sabotage fears
Move reflects heightened concern that Russia may be plotting violent acts across Europe

German police temporarily sealed off an air base near Cologne as they investigated a suspected case of sabotage, authorities have said, with media reports indicating its water supply had been contaminated.

The operation at the military facility, an important hub for western allies’ military support of Ukraine, comes at a time of heightened concern in European capitals that Russia could be plotting violent acts across the continent as it commits to a course of permanent conflict with the west.

Intelligence agencies believe Russia has already begun to prepare covert bombings, arson attacks and damage to infrastructure in Europe, either directly or through proxies.

Col Arne Collatz, a spokesperson for the defence ministry, said an intruder was suspected of illegally entering the Cologne-Wahn barracks and carrying out an act of sabotage. He said investigators as well as officials of the State Protection Office, a police unit that deals with politically motivated crimes, were at the air base, which was set to reopen later on Wednesday.

“You can assume that the safety of barracks has absolute priority at the moment and everyone is very alert to possible gaps [in security] that might arise,” Collatz said. 

Authorities also said there had been another incident at a Nato air base in Geilenkirchen, close to Germany’s border with the Netherlands, and said they could not exclude a link with the suspected sabotage in Cologne-Wahn. The security level was raised at the facility, but it was not sealed off, Nato said.

The news magazine Spiegel reported that the saboteur at Cologne-Wahn may have contaminated the barracks’ water supply. It cited internal communications in which soldiers and civilian employees were warned not to drink any tap water. Collatz declined to comment. The air base has its own waterworks.

A statement by the Bundeswehr’s territorial leadership command said it “wishes all members of the armed forces who had come to harm during the incident a speedy and complete recovery”. The Bundeswehr did not say how many people had been affected or provide other details about the incident.

Spiegel said the military air base to the south-east of Cologne, the biggest city in the western state of North Rhine-Westphalia, provides military support for Kyiv, while Ukrainian soldiers who undergo training in Germany return home from the facility.

It also hosts several military and civilian departments of the Bundeswehr as well as the headquarters of the department that provides military planes to German cabinet ministers for official trips. The facility is adjacent to Cologne’s commercial airport.

Spiegel said Bundeswehr officers inspecting the site on Wednesday morning found a hole in a section of fence surrounding the barracks.

Thomas Haldenwang, head of German domestic intelligence, said in April that the “risk of state-controlled acts of sabotage [had] significantly increased” in recent months. He said Russia now seemed comfortable carrying out operations on European soil “[with] a high potential for damage”.

He was speaking just days after two German-Russian nationals were arrested in Bayreuth, Bavaria, for allegedly plotting to attack military and logistics sites in Germany on behalf of Russia.

Meanwhile, two men were charged in the UK in late April with having started a fire at a warehouse containing aid shipments for Ukraine. English prosecutors have accused them of working for the Russian government.

>>> Jana Partners (Barry Rosenstein) discloses updated portfolio positions in 13

Jana Partners (Barry Rosenstein) discloses updated portfolio positions in 13F filing: Affirms new RPD holding and new BL FTRE positions, Added to WOLF TRMB THS, Exited FRPT
Highlights from Q2 2024 filing as compared to Q1 2024 (all amounts are approximate):
  • New positions in: RPD (2.72 mln shares), BL (1.15 mln), FTRE (0.69 mln)
  • Increased positions in: WOLF (to 6.17 mln shares from 4.56 mln shares), TRMB (to 4.18 mln from 3.76 mln), THS (to 4.91 mln from 4.91 mln)
  • Maintained positions in: MRCY (6.92 mln shares) EHAB (2.08 mln shares)
  • Closed positions in: FRPT (from 1.09 mln shares)
  • Decreased positions in: FIS (to 3.14 mln shares from 3.44 mln shares), SPY (to 0.44 mln from 0.68 mln), QDEL (to 1.03 mln from 1.2 mln) FYBR (to 9.58 mln from 9.72 mln)

>>> US Research Calls

Research Calls
  • Upgrades:
    • American Woodmark (AMWD) upgraded to Outperform from Peer Perform at Wolfe Research; tgt $110
    • Ball Corp (BALL) upgraded to Outperform from Neutral at Robert W. Baird; tgt $70
    • Chipotle Mexican Grill (CMG) upgraded to Outperform from Neutral at Wedbush; tgt raised to $58
    • Cidara Therapeutics (CDTX) upgraded to Buy from Neutral at H.C. Wainwright; tgt $24
    • EQT Corp. (EQT) upgraded to Overweight from Equal Weight at Wells Fargo; tgt raised to $42
    • Hudbay Minerals (HBM) upgraded to Buy from Hold at Jefferies
    • HUYA (HUYA) upgraded to Buy from Sell at Citigroup; tgt raised to $6
    • Illumina (ILMN) upgraded to Equal Weight from Underweight at Barclays; tgt $125
    • Illumina (ILMN) upgraded to Buy from Hold at TD Cowen; tgt raised to $144
    • Johnson Controls (JCI) upgraded to Sector Perform from Underperform at RBC Capital Mkts; tgt raised to $69
    • L'Oreal (LRLCY) upgraded to Hold from Underperform at Jefferies
    • Meritage (MTH) upgraded to Outperform from Peer Perform at Wolfe Research; tgt $230
    • nCino (NCNO) upgraded to Buy from Neutral at Goldman; tgt raised to $42
    • Nkarta (NKTX) upgraded to Strong Buy from Outperform at Raymond James; tgt $16
    • Sportradar Group AG (SRAD) upgraded to Buy from Hold at Jefferies; tgt raised to $16
    • Starbucks (SBUX) upgraded to Outperform from In-line at Evercore ISI; tgt raised to $120
    • Starbucks (SBUX) upgraded to Buy from Hold at Deutsche Bank; tgt raised to $118
    • Starbucks (SBUX) upgraded to Buy from Hold at Stifel; tgt raised to $110
  • Downgrades:
    • ACELYRIN (SLRN) downgraded to Neutral from Buy at H.C. Wainwright; tgt lowered to $6
    • Emerson (EMR) downgraded to Neutral from Overweight at JP Morgan; tgt lowered to $115
    • Hershey Foods (HSY) downgraded to Hold from Buy at Argus
    • Hexcel (HXL) downgraded to Sector Perform from Outperform at RBC Capital Mkts; tgt lowered to $68
    • Hudson Pacific Properties (HPP) downgraded to Peer Perform from Outperform at Wolfe Research
    • Intuit (INTU) downgraded to Equal-Weight from Overweight at Morgan Stanley; tgt lowered to $685
    • L3Harris (LHX) downgraded to Sector Perform from Outperform at RBC Capital Mkts; tgt lowered to $240
    • Marinus Pharmaceuticals (MRNS) downgraded to Neutral from Buy at Ladenburg Thalmann
    • Medtronic (MDT) downgraded to Hold from Buy at Stifel; tgt lowered to $85
    • Playa Hotels & Resorts (PLYA) downgraded to Neutral from Buy at Citigroup; tgt lowered to $8
    • PulteGroup (PHM) downgraded to Peer Perform from Outperform at Wolfe Research
    • Ranpak (PACK) downgraded to Neutral from Outperform at Robert W. Baird; tgt $10
  • Others:
    • Bitdeer Technologies (BTDR) resumed with a Buy at Rosenblatt; tgt $9
    • DTE Energy (DTE) initiated with a Buy at Ladenburg Thalmann; tgt $131
    • Enova International (ENVA) initiated with a Buy at BTIG Research; tgt $90
    • Gain Therapeutics (GANX) resumed with an Outperform at Oppenheimer; tgt $8
    • Korro Bio (KRRO) initiated with an Outperform at William Blair; tgt $180
    • Montrose Environmental Group (MEG) initiated with an Outperform at Evercore ISI; tgt $43
    • TeraWulf (WULF) resumed with a Buy at Rosenblatt; tgt $5
    • VSE Corp (VSEC) initiated with a Buy at Jefferies; tgt $100

>>> US D1 Capital discloses updated portfolio positions in 13F filing: New QSR W

D1 Capital discloses updated portfolio positions in 13F filing: New QSR WMG XPO MRVL IREN positions, Added to LEN AMZN LYV SQ, Exited EQR DLO GOOGL PCOR META AVB CPT ADI UNH
Highlights from Q2 2024 filing as compared to Q1 2024 (all amounts are approximate):
  • New positions in: QSR (2.84 mln shares), WMG (2.75 mln), XPO (2.56 mln), MRVL (1.55 mln), IREN (1.53 mln), HUT (1.16 mln), VIK (0.88 mln), MTZ (0.74 mln), BTDR (0.53 mln), PDD (0.47 mln)
  • Increased positions in: LEN (to 2.42 mln shares from 0.46 mln shares), NU (to 14.61 mln from 12.92 mln), LYV (to 3.54 mln from 2.45 mln), SQ (to 1.83 mln from 1.04 mln), RCL (to 1.51 mln from 0.74 mln), GEV (to 1.37 mln from 0.7 mln), AMZN (to 1.29 mln from 0.78 mln), WDAY (to 0.52 mln from 0.21 mln), SPOT (to 0.68 mln from 0.64 mln)
  • Maintained positions in: CART (28.91 mln shares)
  • Closed positions in: EQR (from 6.93 mln shares), DLO (from 3.77 mln), GOOGL (from 2.37 mln), PCOR (from 0.81 mln), META (from 0.79 mln), AVB (from 0.45 mln), CPT (from 0.33 mln), GWRE (from 0.31 mln), ADI (from 0.3 mln), UNH (from 0.16 mln)
  • Decreased positions in: RIVN (to 0.1 mln shares from 5.87 mln shares), WRBY (to 9.44 mln from 14.94 mln), INVH (to 3.4 mln from 6.28 mln), HDB (to 3.43 mln from 5.83 mln), TPX (to 0.13 mln from 1.3 mln), PM (to 6.09 mln from 7.24 mln), CCL (to 3.72 mln from 4.57 mln), PODD (to 0.27 mln from 1 mln), ELV (to 0.3 mln from 0.53 mln), PFE (to 7.62 mln from 7.83 mln), STZ (to 0.57 mln from 0.66 mln), MSFT (to 0.31 mln from 0.33 mln)

>>> US Gapping down

Gapping down
In reaction to earnings/guidance
:
  • OUST -15.8%, EAT -15.1%, GLBE -14.6%, USPH -3.9%, IBTA -3% (also announces partnership with Instacart), NPCE -2.5%, FNV -1%
Other news:
  • SLRN -11.1% (announces phase 3 data for Izokibep; focuses strategy on Lonigutamab)
  • RNA -3.3% ($250 mln stock offering)
  • NAVI -2.8% (to sell equity interests in Xtend Healthcare for $365 mln)
  • ENZL -1.8% (agreed to ease the level of monetary policy restraint by reducing the OCR to 5.25%)
  • VALE -1.6% (completes acquisition of stake in Aliança Energia)
  • GOOG -1.4% (DOJ considers breaking up Google following court ruling, according to Bloomberg)
  • SQSP -0.9% (Glazer Capital details its opposition to the proposed acquisition of Squarespace by Permira)
  • BLUE -0.9% (files to delay form 10Q)

>>> US Gapping up

Gapping up
In reaction to earnings/guidance
:
  • SERV +20.6%, VSCO +15.2% (guidance), MRX +14.8%, MRCY +11.7%, GRAL +8.9%, SPHR +8.7%, SDHC +8.4%, XP +7.1%, FLUT +7% (also does not plan to match rival DKNG, which plans to introduce a player surcharge in high-tax states, according to Bloomberg), QFIN +6.6%, SLDB +6.3%, CAH +6.3%, CAE +5.9%, RSKD +5.5%, INTA +4.7%, FATE +4.2%, SVM +3.7%, PFGC +3.4%, UBS +3.1%, NATL +2.4%, NU +2.2%, ESLT +1.3%, DOLE +1%, ARCO +0.8%
Other news:
  • VRCA +22.6% (results from Part 2 of its Phase 2 clinical trial studying VP-315 for the treatment of basal cell carcinoma)
  • ANAB +11% (prices offering of 2,750,498 shares of its common stock at $36.50 per share)
  • HA +10.3% (Hawaiian Holdings discloses that it and Alaska (ALK) agreed with the DOJ to further extend the Review Period until 12:01 a.m., Eastern Time, on August 16, 2024) K +7.9% (Mars confirmed it will acquire Kellanova for $83.50/share in cash)
  • GEO +4.8% (Executive Chairman disclosed the purchase of 250,000 shares at $12.17 - $12.35 worth about $3.1 mln)
  • PFGC +3.4% (enters into a definitive agreement with Cheney Bros. for $2.1 billion in cash)
  • NVST +2.4% (CFO insider buy disclosure - bought 24,532 shares at $16.26 - $16.42 worth approx. $400K)
  • ARM +1.9% (Intel (INTC) discloses that it sold stake in Arm Holdings)
  • BITF +1.8% (Riot Platforms reports beneficial ownership of 18.9% in Bitfarms)
  • ALL +1.7% (to sell American Heritage units to StanCorp for $2 bln in cash)
  • CORZ +1.5% (prices $400 mln of 3.00% convertible senior notes due 2029)
  • LUV +1.4% (Elliott Mgmt to launch proxy fight, according to WSJ; Elliott Management Announces Director Candidates for the Board of Southwest Airlines)
  • RIOT +1.3% (Riot Platforms reports beneficial ownership of 18.9% in Bitfarms)
  • LYFT +1.2% (CEO bought 51,815 shares)
  • ZURA +1.2% (presentation that Phase 2 study for tibulizumab targeting SSc starts in 4Q 2024, followed by HS in 2Q 2025)
  • USFD +1.1% (to repurchase $221 mln of its shares owned by a fund)
  • FIX +1% (increases share buyback authorization to 1 mln shares)

>>> 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.