>>> Cambian Group rejects 210p per share takeover bid from CareTech Holdings - r

Cambian Group rejects 210p per share takeover bid from CareTech Holdings - report
10 JUL 2018
Cambian Group’s [LON:CMBN] board has rejected a 210p per share takeover bid from rival social services company CareTech Holdings[LON:CTH], Sky News reported. CareTech made a bid approach to Cambian weeks ago, which is believed to have been rebuffed by Cambian’s board, according to the unsourced report.
It is understood that several institutional shareholders in Cambian were in favour of the takeover offer, the item said, adding that some of them are now calling for Cambian’s chairman Christopher Kemball to resign.
It was not know as of Monday, 9 July whether the two companies have held further talks or if the discussions are continuing, the item said.
Cambian and CareTech both refused to comment, according to the report.
CareTech’s executive chairman Farouq Sheikh said in June that the company was considering several “consolidation opportunities,” the item noted.
Cambian Group’s share price closed 2.2p up at 148.2p in London on Friday, 6 July, giving the company a market capitalisation of GBP 272m (EUR 306m).
Cambian has contracts with municipal authorities covering work including the provision of services to children with behavioural problems, while CareTech provides specialist services to children and adults who have learning disabilities, the report noted.

>>> What to look at today - 10th of July 2018

Stocks in Asia edged higher, extending a rise from a nine-month low amid optimism the upcoming earnings season will be robust enough to overshadow a rise in trade tensions.
Equities in Japan, Hong Kong and South Korea rose after the S&P 500 Index climbed to the upper end of its recent trading range. Regional gains were muted as shares in Shanghai and Sydney bucked the positive trend. Still, the yen fell past 111 per dollar and 10-year Treasury yields ticked higher as risk aversion faded. With U.S. President Donald Trump focusing on a Supreme Court pick and upcoming trip to Europe, trade-war headlines have faded since last Friday’s imposition of U.S. and Chinese tariff hikes.

Nikkei +1.04% Hang Seng +0.25% CSI -0.44% Shanghai -0.33% Shenzen +0.01%

Eur$ 1.1742 CNH 6.6207 CNY 6.6117 JPY 111.11 GBP 1.3234 CHF 0.9923 RUB 62.49 WTI$ 74.24 +0.53 %

S&P +0.08% EuroStoxx -0.03% Dax +0.1% SMI -0.03% FTSE +0.07%

Macro :
- Watch Turkey-Exposed European Stocks After Lira’s Plunge

Keep an eye on :
- AF FP : Air France KLM Board Meets Thursday: Les Echos
- BSL GY : Basler Takes Over MVLZ Machine Vision Operations in China
- COPN SW : Cosmo Pharma Says Has Very Positive Phase 3 Results for Winlevi
- COFB BB : Cofinimmo to Buy Nursing & Care Home in Bad Sassendorf for EU15m
- DANSKE DC : Danske Bank Laundering Fine Risks Priced In, Berenberg Says
- DTE GY : Deutsche Telekom Wins Unconditional EU Nod to Buy UPC Austria
- EIG LN : *EI GROUP IS SAID TO MULL SALE OF PROPERTY BUSINESS: TIMES
- ELI BB : Elia Plans to Spend EU5b in 2020-2030 Investment Plan: De Tijd
- ING FP : Ingenico Good Target for Atos, Could Pay EU110/Share, UFP Says
- ISAT LN : Exane BNP Paribas speculates co. could get offer from Dish Network
- MTG SW : Meier Tobler Suspends 2018, 2019 Dividends
- REP SM : Repsol Shut Down Gyda Production After Uncovering Deficiencies
- RMG LN : ISS, Glass Lewis Ask Royal Mail Holders to Reject Pay Report: FT
- ROU BB : Roularta 1H Ad Sales Drop 5%-10%; Ex-Date for Payout Is July 16
- SAN SM : Santander Wants to Sell EU6b Property Portfolio This Month: EFE
- SAN FP : Sanofi Halts Ops at Site With Excess Solvent Emissions: AFP
- SAE GY : Shop Apotheke Europe 1H Revenue More Than Doubled to EU257M
- SKY LN : Fox Is Said to Ready Higher Sky Bid With U.K. Approval Seen Near
- TKA GY : U.S. Steel Tariffs Not ’Fundamental Change’ to Market: Vestager
- TRYG DC : Tryg Second Quarter Pretax Profit Misses Estimates
- URW NA : Unibail-Rodamco-Westfield May Increase Asset Sales: Macquarie
- WPP LN : Sorrell Is Said to Have Beat WPP to MediaMonks Acquisition: FT
- ZEHN SW : Zehnder to Cut 35 Jobs at Graenichen Site in Wake of Relocation

>>> Europe : Brokers Upgrades & Downgrades - 10th of July 2018

>>> Up
* Acacia Mining Upgraded to Overweight at Barclays; PT 1.71 Pounds
* Ascential Upgraded to Add at Peel Hunt; PT 5.15 Pounds
* Atos Upgraded to Overweight at Barclays; PT 140 Euros
* Chemring Group Raised to Overweight at Barclays; PT 2.66 Pounds
* Danske Bank Upgraded to Hold at Berenberg
* dormakaba Upgraded to Buy at Kepler Cheuvreux; PT 880 Francs
* Salvatore Ferragamo Upgraded to Hold at Jefferies
* Wacker Chemie Upgraded to Buy at SocGen; Price Target 150 Euros

>>> Down
* Computacenter Cut to Underweight at Barclays; PT 11 Pounds
* Straumann Cut to Market Perform at Bernstein; PT 755 Francs
* Temenos Cut to Underweight at Barclays; Price Target 120 Francs

>>> Initiation
* Fresenius Medical Reinstated at BofAML With Buy; PT 102 Euros
* IntegraFin Holdings Rated New Neutral at Macquarie
* Leonteq Rated New Buy at Research Partners; PT 75 Francs
* Ted Baker Rated New Buy at HSBC; PT 29 Pounds

>>> Call

>>> US After Hours Summary: OCX +48% on encouraging lung cancer di

After Hours Summary: OCX +48% on encouraging lung cancer diagnostic blood test results, XLRN +11% on Luspatercept phase III data

After Hours Gainers:

Companies trading higher in after hours in reaction to news: OCX +47.5% (reports 'encouraging' new study results for lung cancer blood test), XLRN +10.8% / CELG +0.7% (Celgene and Acceleron announce Luspatercept achieved primary and all key secondary endpoints in Phase III BELIEVE study), ARA +3.1% (light volume; American Renal Associates and UnitedHealthcare reach settlement), SFUN +2.4% (Fang signs non-binding memorandum to acquire 10% equity interest in Chongquing Wanli New Energy for RMB200 mln), DNLI +2.1% (still checking), HEAR +2% (initiated with a Buy at DA Davidson), PCAR +1.1% (announces $300 mln share repurchase of common stock), SFIX +0.7% / WTW +0.6% (initiated with Overweight ratings at KeyBanc Capital Mkts), CBOE +0.3% (initiated with a Buy at Compass Point; tgt $115)

After Hours Losers:

Companies trading lower in after hours in reaction to news: ADMP -6.4% (files for $150 mln mixed securities shelf offering), WHD -5.3% (commences 10 mln share Class A common stock offering; provides prelim Q2 expectations with revs of $136.0-139.0 mln vs. $126.60 mln Capital IQ Consensus Estimate) DAC -4% (files for 99,342,271 share common stock offering by selling shareholders), LOXO -1.6% (attributed to block trade pricing), JWN -1% / URBN -0.7% (downgraded to Sector Weight at KeyBanc Capital Mkts),

>>> US Close Dow +1.31% S&P +0.88% Nasdaq +0.88% Russell +0.62%

Closing Market Summary: Financials Pace Third Straight Advance

Stocks rallied for a third consecutive session on Monday as investors shelved their trade war fears and set their sights on the Q2 earnings season, which will unofficially kick off on Friday. The S&P 500 and the Nasdaq advanced 0.9% apiece, and the Dow added 1.3%, climbing back into positive territory for the year (+0.2% YTD). The market started in the green and climbed steadily throughout the session.

Growth-sensitive sectors were the top-performing groups on Monday, underlining a risk-on attitude from market participants. Financials (+2.3%), industrials (+1.8%), and energy (+1.5%) finished atop the sector standings, while the top-weighted information technology space (+0.8%) struggled to keep pace -- although it did gain some ground in the afternoon.

On the downside, four groups -- mostly countercyclical -- finished in negative territory. The lightly-weighted utilities sector was particularly weak, tumbling 3.1%, following an impressive four-week run; the group surged 10.5% from June 12 to July 6.

In corporate news, Groupon (GRPN 4.83, +0.47) rallied 10.7% after Recode reported that the company is looking for a buyer, but Twitter (TWTR 44.14, -2.51) dropped 5.4% following a Washington Post report that the company has sharply escalated its battle against fake accounts, putting user growth at risk. Also of note, Dow component Pfizer (PFE 37.16, +0.05) finished roughly flat after President Trump singled the company out for high drug prices.

Elsewhere, U.S. Treasuries sold off, pushing yields higher across the curve; the benchmark 10-yr yield climbed three basis points to 2.86%. WTI crude futures rose 0.3% to $74.04 per barrel -- nearly a new three-and-a-half year high -- and the U.S. Dollar Index ticked up 0.1% to 93.82.

Overseas, the UK's Foreign Minister Boris Johnson, Brexit Minister David Davis, and Parliamentary Private Secretary to the Department of Transportation Chris Green resigned from government due to ideological differences with Prime Minister Theresa May.

Separately, President Trump said China may be "exerting negative pressure" on a deal between the U.S. and North Korea. Over the weekend, North Korean officials accused the U.S. of being "gangster-like" in its demand for denuclearization following two days of talks with Secretary of State Mike Pompeo.

Reviewing Monday's economic data, which was limited to the Consumer Credit report for May:

  • The Consumer Credit report for May showed an increase of $24.6 billion (consensus $12.4 billion). April credit growth was revised to $10.3 billion from $9.3 billion.
    • The key takeaway from the report is that the surge in credit expansion will serve as a catalyst for a strong pickup in consumer spending that should manifest itself in a strong Q2 GDP number.

Looking ahead, investors will receive the NFIB Small Business Optimism Index for June and the Job Openings and Labor Turnover Survey for June on Tuesday.

  • Nasdaq Composite +12.4% YTD
  • Russell 2000 +11.0% YTD
  • S&P 500 +4.1% YTD
  • Dow Jones Industrial Average +0.2% YTD