RTL Group renonce finalement à céder M6
Le groupe Bertelsmann a décidé de donner du temps au temps. «Nous avons travaillé pendant près de deux ans à une consolidation du secteur. Ce projet était sans doute trop en avance. Nous le regrettons», a déploré Nicolas de Tavernost.
La vente du groupe M6 n'aura pas lieu. Lundi soir, après un week-end de réflexion, le groupe Bertelsmann a décidé de donner du temps au temps. «Nous avons reçu trois offres, toutes de qualité. Notre actionnaire RTL Group, en concertation avec nous, a néanmoins considéré qu'il fallait mieux travailler dans la stabilité compte tenu d'un cadre réglementaire complexe», indique Nicolas de Tavernost, le président du directoire de M6.
En fin de semaine dernière, trois offres fermes étaient sur la table. La première de FL Entertainment, leader mondial de la production audiovisuelle (Banijay) contrôlé par Stéphane Courbit, associé à Rodolphe Saadé, le patron du géant du transport maritime CMA-CGM, et de Marc Ladreit de Lacharrière (Fimalac). La seconde du binôme constitué de Xavier Niel, patron de Free et de MediaForEurope, le groupe de la famille Berlusconi. La troisième, enfin, formulée par le milliardaire tchèque Daniel Kretinsky, qui dispose en France d'un groupe de presse avec CMI (Elle, Marianne).
«Nous avons travaillé pendant près de deux ans à une consolidation du secteur. Ce projet était sans doute trop en avance. Nous le regrettons», a déploré Nicolas de Tavernost. Mais je me réjouis de voir l'intérêt pour notre groupe. Il a été très fort. Le groupe restera le pivot d'une consolidation. Nous restons attractifs pour des partenaires locaux et internationaux».
Ofgem admits Britain is at risk of ‘gas supply emergency’
Regulator warns country faces shortages this winter, raising fears about potential power cuts
Britain’s energy regulator has warned that the country faces a possible “gas supply emergency” this winter as a result of Russia’s squeeze on natural gas exports to Europe.
The admission by Ofgem came in a response to a request by the FTSE 100 energy group SSE for a modification to a rule that would trigger heavy fines for operators of gas-fired power stations should they be unable to generate the electricity they are contracted to supply.
The watchdog noted in the letter that “due to the war in Ukraine and gas shortages in Europe, there [was] a significant risk that gas shortages could occur during the winter”, adding: “As a result, there is a possibility that [Britain] could enter into a gas supply emergency.”
The UK’s gas emergency plan allows for supplies to be cut off to large users, such as power stations, should appeals to the public and businesses to limit usage prove insufficient to avoid destabilising the system. Other measures include suspending exports to other European countries via undersea pipelines.
Ofgem said in its letter, dated September 30, that SSE’s proposed changes should be “progressed on an urgent basis” because very high penalties for gas-fired power stations could “result in [the] potential insolvency of gas-fired generators if a gas supply emergency occurs”.
The admission by the regulator, first reported by The Times, will increase fears of energy shortages this winter.
The government and National Grid, which is responsible for ensuring Britain has enough supplies of gas and electricity, have been carrying out stress tests in the event of energy shortages this winter.
Officials have so far insisted that their “central case” suggests there will be adequate supplies, although privately they have admitted the crisis is putting “extreme” pressure on the energy system.
National Grid is due to release its winter outlook reports on Thursday, which will set out in detail its assessment of whether there will be sufficient supplies available to avoid power cuts.
Energy companies and analysts have grown increasingly concerned about shortages during the coldest months since Russia suspended gas exports to the EU via the Nordstream 1 pipeline in early September.
LCP Energy Analytics has estimated that Britain could experience 10 hours of insufficient electricity supply this winter.
Britain’s energy market is closely linked to those on the continent and normally relies on gas and electricity imports through the subsea pipelines and cables from the EU and Norway to make up for shortfalls.
Russia’s gas export squeeze has been compounded by other problems in some of the countries that Britain regularly relies on for energy imports.
Norway, one of Europe’s biggest electricity exporters, warned in August that it may have to limit exports this winter if water levels for its hydropower stations remain low. France has been hit by outages across its fleet of nuclear reactors and has warned that it expects to rely on imports from neighbouring countries this winter.
To bolster domestic supplies, the UK government has ordered three coal-fired power plants that were due to shut down last month to remain on standby this winter. But ministers were criticised for failing to act soon enough to prevent the Hinkley Point B nuclear power plant from closing in July.
The government did not immediately respond to a request for comment on Ofgem’s warning.
Vodafone and Three in talks to create UK’s biggest mobile operator
Vodafone has been under pressure from activist investors to change strategy and improve returns
Vodafone has confirmed it is in talks with CK Hutchison, owner of rival telecoms group Three, to combine their UK businesses and create the biggest mobile operator in the country.
In a statement on Monday, Vodafone said it would own 51 per cent of the combined business and Hong Kong conglomerate CK Hutchison 49 per cent. Vodafone UK and Three UK are at present the third and fourth largest mobile operators in Britain.
“As [regulator] Ofcom has identified, some operators in the UK — Vodafone UK and Three UK — lack the necessary scale to earn their cost of capital,” the statement said. “By combining our businesses, Vodafone UK and Three UK will gain the necessary scale to be able to accelerate the rollout of full 5G in the UK and expand broadband connectivity to rural communities and small businesses.”
Vodafone’s share price rose 2.5 per cent in morning trading, to 104p.
The company has been under pressure from activist investors to change strategy and improve shareholder returns.
Earlier this year, Europe’s largest activist investor, Cevian Capital, bought an unspecified stake in Vodafone and has been pushing for it to pursue deals that would allow it to simplify its sprawling international business and sell off poorly performing divisions.
Last month, French billionaire Xavier Niel built a 2.5 per cent stake in Vodafone, adding to the pressure to shake up the business and improve returns.
The merger is very likely to be scrutinised by the UK’s Competition and Markets Authority.
Telecoms executives thought regulators had become more sympathetic to the prospect of mergers to facilitate investment in network infrastructure, but high inflation has bought worries about rising consumer prices to the fore.
“Bulking up would offer many synergies and cost-saving opportunities,” said Kester Mann, an analyst at consultancy CCS Insight. “It would be up to the competition authorities to decide whether reducing the number of players is for the overall good of the market. Advocates will argue it encourages investment; dissenters will claim it’s a reason to push up prices.”
Operators in the UK have been criticised recently for increasing prices significantly above inflation and failing to advertise cheaper tariffs, at a time when millions of people are struggling with rising costs.
European telecoms groups have not performed very well over the past decade, in a highly competitive market with pro-consumer regulation. Vodafone’s share price is down more than 11 per cent since the start of the year, and more than 50 per cent over the past five years.
Three UK has struggled to expand for several years. Its revenue in the first half of the year was flat compared with the same period last year.
Vodafone’s chief executive Nick Read has said he wants to pursue deals to consolidate in competitive markets such as Spain, Italy, UK and Portugal.
On Friday, the company announced an agreement to buy Portuguese telecoms operator Nowo from Spanish operator MasMovil.
Research Calls
- Upgrades:
- Box (BOX) upgraded to Overweight from Equal-Weight at Morgan Stanley; tgt raised to $34
- CF Industries (CF) upgraded to Outperform from Sector Perform at RBC Capital Mkts; tgt raised to $135
- Deliveroo plc (DROOF) upgraded to Neutral from Underweight at JP Morgan
- New Gold (NGD) upgraded to Outperform from Sector Perform at RBC Capital Mkts; tgt raised to $1.25
- Qualtrics (XM) upgraded to Outperform from Neutral at Exane BNP Paribas; tgt $15
- Sandvik AB (SDVKY) upgraded to Overweight from Equal-Weight at Morgan Stanley
- Southwestern Energy (SWN) upgraded to Buy from Hold at Truist; tgt raised to $11
- Wells Fargo (WFC) upgraded to Buy from Neutral at Goldman; tgt raised to $48
- Downgrades:
- Citigroup (C) downgraded to Neutral from Buy at Goldman; tgt lowered to $47
- DocuSign (DOCU) downgraded to Equal-Weight from Overweight at Morgan Stanley; tgt lowered to $47
- Enfusion (ENFN) downgraded to Neutral from Buy at BofA Securities; tgt lowered to $15
- Livent (LTHM) downgraded to Underperform from Neutral at BofA Securities; tgt lowered to $27
- Mosaic (MOS) downgraded to Sector Perform from Outperform at RBC Capital Mkts; tgt lowered to $65
- Ryan Specialty Group (RYAN) downgraded to Underweight from Neutral at JP Morgan; tgt $40
- Others:
- Edison (EIX) initiated with a Neutral at Credit Suisse; tgt $64
- Global Business Travel Group (GBTG) initiated with a Buy at Deutsche Bank; tgt $7.10
- Roblox (RBLX) initiated with an Underperform at MoffettNathanson; tgt $19
- Vacasa (VCSA) initiated with a Hold at Deutsche Bank; tgt $3
- Vivid Seats (SEAT) initiated with a Hold at Deutsche Bank; tgt $9
Gapping down
News:
- APRN -23.2% (CFO resigns, lowers guidance, equity offering)
- CLNN -15.4% (to report HEALEY ALS platform trial topline results on Monday)
- CS -5.9% (Planned issue for the Credit Suisse Real Estate Fund Green Property postponed)
- TSLA -5.1% (Q3 deliveries)
- ABB -4.6% (completes Accelleron Spin-Off)
- DV -1.5% (files 79,040,908 common stock offering by selling stockholders)
- XPEV -1.5% (Sep deliveries)
- AMPX -1.3% (files for 16,825,366 share common stock offering by selling shareholder)
- HCC -1.2% (files mixed securities shelf offering)
Analyst comments:
- ENFN -6% (downgraded to Neutral from Buy at BofA Securities )
- DOCU -4.2% (downgraded to Equal-Weight from Overweight at Morgan Stanley)
- LTHM -4% (downgraded to Underperform from Neutral at BofA Securities)
- MOS -0.7% (downgraded to Sector Perform from Outperform at RBC Capital Mkts)
Gapping up
In reaction to earnings/guidance:
- AMTD +6.7%, IDCC +2.4%
Select oil/gas related names showing strength:
- OIH +5%, BP +4.2%, USO +4%, HAL +4%, TTE +3.8%, SHEL +3.5%, XLE +3.3%, SLB +3.3%, PSX +3%, XOM +2.8%
Other news:
- MYOV +31.7% (confirms receipt of preliminary, non-binding proposal from Sumitovant Biopharma and Sumitomo Pharma to acquire remaining shares for $22.75 per share)
- CLVS +10.1% (Phase 3 trial of Rubraca achieves primary endpoint in men with metastatic castration-resistant prostate cancer with BRCA or ATM Mutations )
- LXRX +8.3% (reports new analysis of SOLOIST-WHF Trial Underscores Sotagliflozin's Effect on Reducing Recurrent Heart Failure Events)
- AXSM +7.6% (announces Sunosi meets primary endpoint)
- BCDA +7.2% (presents positive CardiAMP cell therapy heart failure trial two-year data at HFSA Annual Meeting)
- OMER +4.8% (announces royalty monetization transaction with DRI Healthcare Trust)
- ACTG +3.7% (provides update on strategic partnership with Starboard Value LP)
- RDW +2.9% (acquires QinetiQ Space NV)
- FLR +2.8% (awarded a $1.33 bln US Navy modification to previously awarded contract for Naval Nuclear Propulsion work)
- NOTE +2.8% (has acquired the core operating assets and book of business of DT-Global Business Consulting)
- FRPT +2.4% (trades +4% after hours on report co has hired bankers to explore a potential sale, according to Barron's)
- AQN +2.1% (to sell ownership interests in a portfolio of operating wind projects in the United States and Canada to InfraRed Capital Partners)
- BITF +1.9% (Provides September 2022 Production and Mining Operations Update)
- XOS +1.7% (files for 11,571,966 share common stock offering by selling shareholder)
- LMT +0.9% (increases its quarterly dividend 7.1% to $3.00/share)
- NIO +0.8% (Sep deliveries)
Analyst comments:
- BOX +3.7% (upgraded to Overweight from Equal-Weight at Morgan Stanley)
- CF +2.8% (upgraded to Outperform from Sector Perform at RBC Capital Mkts)
- WFC +1.4% (upgraded to Buy from Neutral at Goldman)
Early premarket gappers
- Gapping up:
- MYOV +28.2%, AXSM +9.3%, AMTD +8.4%, LXRX +8.3%, BP +4.1%, TTE +3.8%, USO +3.7%, HAL +3.6%, SHEL +3.3%, FLR +2.8%, SLB +2.8%, XLE +2.7%, OIH +2.7%, XOM +2.6%, PSX +2.6%, XOS +1.7%, IDCC +1.5%, FRPT +1.3%, RDW +1.3%, LMT +0.9%, STNG +0.9%
- Gapping down:
- APRN -11.6%, CS -4.8%, ABB -4.7%, TSLA -4.7%, CLNN -4.3%, DV -1.5%, XPEV -1.5%, HCC -1.2%, AMPX -0.8%