Nissan offers Renault seats on board as it rebuffs merger talks
Japanese group in olive branch to French partner as it moves to close down tie-up
Nissan plans to unveil a new slate of directors as early as Friday that will include Renault’s chief executive Thierry Bolloré in an olive branch to its French alliance partner as it rebuffs merger talks.
The new board, which will be created to address a governance crisis that followed the ousting of its former chairman Carlos Ghosn, is expected to retain Nissan’s chief executive Hiroto Saikawa, according to people with knowledge of the plan.
Earlier this week, Nissan’s board, which already includes Renault’s new chairman Jean-Dominique Senard, approved the list of directors that were recommended by a provisional nomination committee, the people said.
The director candidates will then be put to a shareholder vote in June.
Nissan and Renault declined to comment.
Nissan had earlier opposed having both the chairman and chief executive of Renault join its board, but the concession was probably made as the Japanese company seeks to retain Mr Saikawa.
Mr Saikawa has been explicit about his opposition to a full merger and has refused to engage in talks with Renault for now. Instead, he has stressed the need to focus on rebuilding its US business after it warned this week that its operating profit will fall to the lowest level in more than a decade.
In Paris, there remain deep concerns about Mr Saikawa staying on as Nissan’s boss, according to people close to Renault.
Under his watch, the Japanese group’s financial performance has sharply deteriorated, and there are lingering questions among investors about how Mr Saikawa and other executives at the Japanese group could have overlooked Mr Ghosn’s alleged misconduct for nearly a decade.
The former Nissan and Renault chief has denied charges that he understated his pay at Nissan and made personal gains by diverting $5m from the Japanese carmaker. He has blamed his downfall on “conspiracy” and a “dirty game” by Nissan executives opposed to his plan to merge the Japanese group with Renault.
People close to Nissan’s board said some executives at the Japanese company favour continuity in the top management to fend off increasing pressure from Renault, which owns a 43 per cent stake in the Japanese group, to resume merger talks which were halted following Mr Ghosn’s arrest in November.
Analysts also say the composition of Nissan’s new board will be a test case of how committed the Japanese company is to reforming its flawed governance structure.
In line with proposals made by a special governance committee in March, Nissan has said it plans to set up separate board committees to oversee remuneration, audit and appointments.
The new board, which was first reported by the Nikkei newspaper, will have a majority of external directors.
Altice bumps size of stake in Portuguese fibre-optic network sale; timetable slip
Altice [AMS:ATC] is now open to selling a majority stake in its Portuguese fibre-optic network, four sources familiar with the situation said.
Binding bids were initially due on 20 May, though this has been pushed back, the first and second sources said. Bidders have been asked to revise their non-binding bids, the first source said.
Initially, discussions were over the sale of a 49% stake in the business, though this has evolved into a majority, the first, third and fourth sources said. However, the exact stake has not yet been decided, these three sources said.
Altice is working off a high EBITDA for the business, pointing to an enterprise value of EUR 3bn, said the fourth source. Altice Portugal’s fibre-optic network is expected to have a projected EBITDA figure of EUR 210m for the first year after the sale, as previously reported.
Consortia are forming on this deal, the first and third sources said. A consortium deal might make sense for Cellnex Telecom[BME:CLNX], but this company has its hands full closing a big tower deal, said a fifth source familiar with the situation. Cellnex last week announced it agreed to acquire 10,700 towers in France, Italy and Switzerland from Illiad, a France-based telecoms provider and 2,800 sites from the Swiss MNOSalt in a deal totalling EUR 2.7bn.
Cube Infrastructure, with local DST Telecom, which it acquired two years ago, may need a partner, said a sixth source familiar. Four of the sources questioned Cube’s financial capacity to take part in a deal of this size.
Other bidders in the fray include Antin Infrastructure Partners, said the sources, as well as Stonepeak Infrastructure Partners, said the sixth source and a seventh source familiar. Stonepeak missed out on a deal in the US and just raised capital, noted the sixth source. It is unclear whether Brookfield [NYSE:BIP] and EQT Partners remain in the process.
In Altice’s previous fibre optic network deal, it sold a 49.99% stake in SFR FTTH, its French fibre-to-the-home assets, to AXA IM, Allianz Capital Partners and OMERS Infrastructure in a EUR 1.8bn all-equity deal, as reported.
Amsterdam-headquartered Altice is being advised by Lazard and KPMG, as reported.
Altice, Cellnex, EQT, Cube, DST Telecom, Brookfield and Antin declined to comment. Stonepeak did not reply to requests for comment.
Gapping down
In reaction to disappointing earnings/guidance:
- VRTU -24.4%, DDS -7.3%, WIX -5.7%, FTCH -5.3%, NGG -3.3%, DRYS -2.1%, FRO -1.8%, ZTO -1.2%
Other news:
- ADMA -10.1% (announces proposed public offering of $45 mln of its common stock)
- EOLS -9.6% (ALPHAEON agreed to sell ~4.0 million shares of common stock in Evolus in an underwritten public offering)
- PLYM -9.3% (prices public offering of 3 mln shares of its common stock at a public offering price of $17.50 per share)
- ADRO -7% (updates clinical development programs for BION-1301)
- NKTR -5.6% (light volume; announced five abstracts accepted for presentation at ASCO)
- DZSI -4.9% (launches underwritten registered public offering of common stock)
- ABR -4.7% (prices 8 mln shares of common stock for gross proceeds of $102.2 mln)
- AABA -1.1% (Altaba announces planned sale of shares of Alibaba (BABA), per previously announced intentions)
Analyst comments:
- BLD -1.3% (downgraded to Neutral from Buy at Nomura)
Gapping up
In reaction to strong earnings/guidance:
- QIWI +10.5%, TRQ +9.4%, MMYT +7.4%, NICE +3.8%, NTES +3.6%, FLO +3.6%, CSCO +3.4%, WMT +1.4%, ALC +0.9%, JACK +0.5%
Other news:
- IOVA +25.1% (updates from ongoing clinical trials including new interim data from studies of TIL therapy LN-145 in patients with advanced cervical cancer and with TIL therapy lifileucel in advanced melanoma)
- MGNX +14.6% (SOPHIA phase 3 breast cancer ASCO abstract released)
- AGIO +13.1% (announces that Phase 3 ClarIDHy trial of TIBSOVO achieved its primary endpoint)
- CHRA +11.9% (after closing 40% lower on the day)
- NTEC +8.9% (research collaboration agreement with Merck)
- VSTM +3.9% (light volume; to present new COPIKTRA dose modification data from patients treated in the Phase 3 DUO study - dose interruptions of a median 15 days do not significantly impact response or PFS)
- CFX +2.7% (to sell Air and Gas Handling business to KPS Capital Partners for enterprise value of $1.80 bln)
- MRNA +1.3% (ASCO abstract on mRNA-4157 in patients with resected solid tumors and in combination with pembrolizumab in patients with unresectable solid tumors released)
- DRE +0.8% initiated with Buy at Goldman)
- AMZN +0.7% (Buffett's Berkshire affirms new Amazon holding)
Analyst comments:
- STNG +1.6% (upgraded to Overweight from Neutral at JP Morgan)
- M +0.5% (upgraded to Neutral from Sell at Goldman)
Early premarket gappersGapping up:
- AGIO +19.8%, CHRA +16.1%, MGNX +13%, TRQ +9.4%, NTEC +4.2%, VSTM +3.9%, CSCO +3.5%, NTES +3.4%, NICE +2.7%, FLO +2.4%, HOME +0.9%, ALC +0.9%, BABA +0.8%, DRE +0.8%, AMZN +0.8%
Gapping down:
- VRTU -24.4%, ADRO -14.3%, ADMA -9.7%, PLYM -8%, EOLS -7.9%, DDS -7.3%, FTCH -5.3%, DZSI -4.9%, ABR -4.9%, NKTR -2.7%, NGG -2.6%, DRYS -2.1%, PCG -1.3%, ZTO -1.2%, AABA -1.1%, S -0.5%
Soros Fund (George Soros) discloses updated portfolio positions in 13F filing: New GRFS ATUS CDAY positions
Highlights from 2019 Q1 filing as compared to 2018 Q4 filing:
- New positions in: GRFS (~2.13 mln shares), ATUS (~1.65 mln), CDAY (~1.65 mln), BGCP (~1.48 mln), FDC (~1.22 mln), CMCSA (~1.1 mln), DHI (~0.97 mln), VIAB (~0.85 mln), KDP (~0.5 mln), SC (~0.5 mln), TWNK (~0.2 mln), LYFT (~0.2 mln), NAVI (~0.2 mln), ETSY (~0.14 mln), ADBE (~0.13 mln), TWLO (~0.13 mln), WP (~0.12 mln)
- Increased positions in: SIRI (to ~4.21 mln shares from ~1.96 mln shares), DNR (to ~2.5 mln from ~1 mln), MRVL (to ~1.4 mln from ~0.17 mln), CAG (to ~1.85 mln from ~1.13 mln), VNOM (to ~0.95 mln from ~0.29 mln) FLMN (to ~1.17 mln from ~0.64 mln), SYF (to ~0.5 mln from ~0.05 mln) ADM (to ~0.7 mln from ~0.33 mln),
- Maintained positions in: LBRDK (~7.29 mln shares), COUP (~0.61 mln shares), LPLA (~0.57 mln shares)
- Closed positions in: ALLT (from ~3.27 mln shares), OKE (from ~0.2 mln), T (from ~0.73 mln), WPX (from ~0.7 mln), VZ (from ~0.61 mln), PM (from ~0.59 mln), CF (from ~0.34 mln), KHC (from ~0.3 mln), GSKY (from ~0.23 mln), HSY (from ~0.22 mln)
- Decreased positions in: CZR (to ~24.82 mln shares from ~33.16 mln shares), VICI (to ~19.64 mln from ~20.9 mln), XLF (to ~0.92 mln from ~2.03 mln), LGFA (to ~1.05 mln from ~1.5 mln), NRG (to ~0.3 mln from ~0.58 mln), CMA (to ~0.01 mln from ~0.27 mln), ZION (to ~0.06 mln from ~0.27 mln), AABA (to ~2.35 mln from ~2.56 mln), BUD (to ~0.02 mln from ~0.15 mln), COTY (to ~1 mln from ~1.13 mln)
Pershing Square (PSHZF Bill Ackman) discloses updated portfolio positions in 13F filing: Increased UTX holding
Highlights from 2019 Q1 filing as compared to 2018 Q4 filing:
- Increased position in: UTX (to ~5.82 mln shares from ~5.58 mln shares)
- Maintained position in: HLT (~10.97 mln shares
- Closed position in: ESI (from ~40.45 mln shares)
- Decreased positions in: SBUX (to ~9.99 mln shares from ~11.75 mln shares), QSR (to ~18.34 mln from ~19.69 mln), CMG (to ~1.86 mln from ~1.94 mln), HHC (to ~1.19 mln from ~1.23 mln), LOW (to ~9.32 mln from ~9.54 mln), ADP (to ~4.03 mln from ~4.07 mln)
Greenlight Capital (David Einhorn ) discloses updated portfolio positions in 13F filing: New TGP position
Highlights from 2019 Q1 filing as compared to 2018 Q4 filing:
- New position in: TGP (~0.5 mln shares)
- Increased positions in: CNX (to ~5.79 mln shares from ~3.49 mln shares), AER (to ~4.16 mln from ~3.85 mln), CEIX (to ~0.34 mln from ~0.14 mln)
- Maintained positions in: GRBK (~24.12 mln shares), CCR (~5.49 mln shares), ATUS (~4.11 mln shares), BHF (~3.29 mln shares), ADNT (~1.98 mln shares), HGV (~1.12 mln shares), MDCO (~0.95 mln shares), SATS (~0.6 mln shares)
- Closed positions in: SFLY (from ~0.52 mln shares), DDS (from ~0.25 mln), CC (from ~0.2 mln)
- Decreased positions in: GM (to ~9.12 mln shares from ~11.94 mln shares), TPX (to ~0.66 mln from ~1.33 mln), XELA (to ~8.02 mln from ~8.38 mln), VOYA (to ~0.74 mln from ~1.05 mln)