Elliott Management (Paul Singer) discloses updated portfolio positions in 13F filing: New WIN, VICI, TVPT positions; Closed AA, NRG
Highlights from 2018 Q1 filing as compared to 2017 Q4 filing:
- New positions in: WIN (~8.95 mln shares), VICI (~7.22 mln), TVPT (~6.75 mln), MFGP (~4.23 mln), TER (~4 mln), CVLT (~2.1 mln), EQT (~1.5 mln), AABA (~1.47 mln), DISH (~1.02 mln), XOM (~0.26 mln)
- Increased positions in: BTU (to ~35.34 mln shares from ~21.19 mln shares), ISBC (to ~9.03 mln from ~6.03 mln), DVMT (to ~8.13 mln from ~5.64 mln), UNIT (to ~8.59 mln from ~6.88 mln)
- Maintained positions in: ARNC (~51.1 mln shares), HES (~21.42 mln shares), ORIG (~18.49 mln shares), NXPI (~16.44 mln shares), CDK (~8.11 mln shares), CTXS (~7.09 mln shares)
- Closed positions in: NRG (from ~10 mln shares), MITL (from ~8.38 mln), TCO (from ~2.92 mln), AA (from ~2.9 mln), CTSH (from ~1.12 mln), TDW (from ~0.69 mln), SAH (from ~0.31 mln), GPI (from ~0.05 mln)
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Third Point (Dan Loeb) discloses updated portfolio positions in 13F filing: New UTX PAGS MPC positions
Highlights from 2018 Q1 filing as compared to 2017 Q4 filing:
- New positions in: UTX (~7.1 mln shares), PAGS (~4.55 mln), MPC (~2 mln), WYNN (~1.54 mln), BKI (~1.25 mln), EA (~1.25 mln), PBF (~1.25 mln), MSFT (~0.55 mln), CRM (~0.45 mln)
- Increased positions in: LEN (to ~6.28 mln shares from ~5.3 mln shares), FB (to ~4 mln from ~3.4 mln), ANTM (to ~0.79 mln from ~0.38 mln), VMC (to ~2.94 mln from ~2.6 mln)
- Maintained positions in: BAX (~36 mln shares), DWDP (~14.08 mln shares), BID (~6.66 mln shares), ICE (~5 mln shares), WP (~4.1 mln shares), DHR (~3.25 mln shares), STZ (~2.3 mln shares), NFLX (~2 mln shares)
- Closed positions in: SWN (from ~15 mln shares), PE (from ~5.75 mln), RSPP (from ~4.6 mln), MGM (from ~3 mln), DVMT (from ~2.5 mln), FMC (from ~2.2 mln), NXPI (from ~2.15 mln), XRAY (from ~2 mln), AET (from ~1.85 mln)
- Decreased positions in: BABA (to ~4 mln shares from ~6 mln shares), NEXA (to ~2.16 mln from ~3 mln), PAM (to ~1.1 mln from ~1.63 mln), BLK (to ~1.09 mln from ~1.55 mln), SPGI (to ~1.5 mln from ~1.8 mln), MHK (to ~0.84 mln from ~1 mln), GOOGL (to ~0.58 mln from ~0.69 mln)
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Appaloosa (David Tepper) discloses updated portfolio positions in 13F filing: New AMLP PAH WFC positions ; Closes EEM, AAPL, CMCS.A, CSX
Highlights from 2018 Q1 filing as compared to 2017 Q4 filing:
- New positions in: AMLP (~5.07 mln shares), PAH (~3.8 mln), WFC (~2.94 mln), AMAT (~1.57 mln), BYD (~1.35 mln), LRCX (~1.3 mln), KNX (~0.95 mln), SMH (~0.74 mln), BTU (~0.59 mln), UAL (~0.53 mln)
- Increased positions in: MU (to ~35.41 mln shares from ~27.5 mln shares), CZR (to ~12.66 mln from ~5.86 mln), MGM (to ~4.07 mln from ~2.33 mln), ETE (to ~6.29 mln from ~5.06 mln), HUN (to ~3.74 mln from ~2.63 mln) LNG (to ~0.92 mln from ~0.18 mln), FB (to ~6.21 mln from ~5.53 mln) PCG (to ~1.65 mln from ~1.13 mln), KMT (to ~1.89 mln from ~1.41 mln),
- Maintained positions in: AABA (~8.02 mln shares), TMUS (~4.15 mln shares), BABA (~4.05 mln shares), AGN (~3.7 mln shares)
- Closed positions in: EEM (from ~9.1 mln shares), AAPL (from ~4.59 mln), CMCS.A (from ~1.99 mln), VST (from ~0.96 mln), CSX (from ~0.18 mln), LUV (from ~0.07 mln), MHK (from ~0.07 mln)
- Decreased positions in: XLF (to ~0.3 mln shares from ~10 mln shares), BAC (to ~10.97 mln from ~17.15 mln), QQQ (to ~0.77 mln from ~5.8 mln), WMIH (to ~3.27 mln from ~7.6 mln), NRG (to ~6.73 mln from ~9.76 mln), ETP (to ~6.69 mln from ~8.18 mln), WPZ (to ~2.72 mln from ~3.72 mln), BSX (to ~3.91 mln from ~4.78 mln)
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MergerMarket
IWG shareholders have yet to hear from possible bidders
15 MAY 2018
- WeWork valuation bolsters price expectations
- Two shareholders plan to march in lockstep with IWG board
Two top IWG [LON:IWG] shareholders told this news service that they have yet to be consulted by any of the company’s three suitors about their possible offers.
Both shareholders said they will follow the lead of IWG’s board when choosing whether – and with which of the three potential bidders – to tender their shares. One of them said he has been in frequent contact with IWG but will defer to the board’s judgment on any offer.
IWG confirmed last week (11 May) that it is evaluating fresh takeover approaches from TDR, Lone Star and Starwood Capital; IWG shares had closed at 227.2p the previous day and now (15 May) trade at 307p. This renewed interest comes after IWG rejected a 280p/share joint bid by ONEX [TSX:ONEX] and Brookfield [TSX:BAM.A] in January that valued the company at GBP 2.5bn.
As an office-space provider active in more than 100 countries, IWG is a unique asset and should not be sold easily, the second shareholder said. IWG could be worth anywhere between 300p/share and 2,000p/share, the shareholder said, and he will sell if founder Mark Dixon sells and hold if Dixon holds.
In June 2017, Dixon sold a 3% stake in the company for 345p/share, the shareholder noted. Later that summer, price expectations were inflated by SoftBank’s [TYO:9984] USD 4.4bn (GBP 3.3bn) investment in WeWork, a similar but smaller company. Though it applies a tech-sector valuation to WeWork, SoftBank’s investment suggests a price near 2,000p/share for IWG, the shareholder said.
This news service reported in February that sector bankers consider WeWork to be no more than a loose comparable for IWG. IWG’s managed properties are split between those it leases and owns, while WeWork’s are leased; WeWork is far smaller on a square-footage basis.
Even on the heels of a profit warning in October that sent IWG shares tumbling to a low of 188.9p, the previous consortium’s 280p/share was indeed a lowball offer, the first shareholder said. Dixon and the board were right to turn it down, especially given the value implied by SoftBank’s WeWork stake. The shareholder said he would follow Dixon’s lead when deciding whether to accept the next bid.
IWG, TDR and Lone Star declined to comment. Starwood did not respond for comment.
Jana Partners (Barry Rosenstein) discloses updated portfolio positions in 13F filing: New BSX ADSK A positions
Highlights from 2018 Q1 filing as compared to 2017 Q4 filing:
- New positions in: BSX (~4.72 mln shares), ADSK (~1.27 mln), A (~1.02 mln), DISCK(~1 mln), IQ (~1 mln), WRK (~0.83 mln), ANTM (~0.61 mln), DPS (~0.59 mln), EA(~0.57 mln)
- Increased positions in: PF (to ~5.36 mln shares from ~1.42 mln shares), JACK (to ~2.15 mln from ~1.09 mln), NOC (to ~0.33 mln from ~0.28 mln)
- Maintained positions in: HDS (~9.09 mln shares), CAG (~3.32 mln)
- Closed positions in: EQT (from ~9.55 mln shares), P (from ~8.56 mln), FWONK (from ~2.38 mln), CMCSA (from ~2.13 mln), EVHC (from ~1.66 mln), SYNH (from ~1.32 mln), DWDP (from ~1.15 mln)
- Decreased positions in: FDC (to ~5.31 mln shares from ~13.3 mln shares; also owns calls), DHI (to ~0.05 mln from ~1.08 mln), PTC (to ~0.6 mln from ~1.42 mln), ZBH(to ~3.11 mln from ~3.85 mln) BLMN (to ~7.16 mln from ~7.93 mln), TIF (to ~3.56 mln from ~3.76 mln
Omega Advisors (Leon Cooperman) discloses updated portfolio positions in 13F filing: New HK TMHC BMY positions
Highlights from 2018 Q1 filing as compared to 2017 Q4 filing:
- New positions in: HK (~0.7 mln shares), TMHC (~0.47 mln), BMY (~0.47 mln), CDEV(~0.47 mln), CLF (~0.47 mln), ANDV (~0.39 mln), DHCP (~0.31 mln), CBAY (~0.28 mln), FTSI (~0.27 mln), MU (~0.27 mln)
- Increased positions in: OCN (to ~14.74 mln shares from ~11.05 mln shares), NBR (to ~8.34 mln from ~6.7 mln), ETE (to ~2.36 mln from ~1.04 mln), HRG (to ~2.05 mln from ~0.86 mln), C (to ~0.68 mln from ~0.13 mln), MXL (to ~2.37 mln from ~1.86 mln), FRAC (to ~2.97 mln from ~2.48 mln) UAL (to ~2.72 mln from ~2.25 mln), SYF(to ~1.69 mln from ~1.24 mln), PE (to ~2.19 mln from ~1.77 mln)
- Maintained positions in: FDC (~7.8 mln shares), AMCX (~3.1 mln shares), DWDP(~1.18 mln shares), MSFT (~1.06 mln shares), GOOGL (~0.16 mln shares)
- Closed positions in: ZNGA (from ~10.23 mln shares), CX (from ~1.7 mln), MGM (from ~0.83 mln), DVMT (from ~0.64 mln), BLL (from ~0.5 mln), CBS (from ~0.32 mln), I(from ~0.31 mln), KRE (from ~0.25 mln), MYL (from ~0.24 mln), EXPE (from ~0.2 mln)
- Decreased positions in: ALLY (to ~0.27 mln shares from ~0.87 mln shares), SHPG (to ~0.41 mln from ~0.98 mln), HES (to ~1.36 mln from ~1.67 mln), NAVI (to ~1.5 mln from ~1.8 mln), ASPS (to ~1.02 mln from ~1.23 mln), WFC (to ~0.41 mln from ~0.61 mln), AER (to ~1.38 mln from ~1.54 mln), EMN (to ~0.34 mln from ~0.46 mln), GLPI(to ~0.2 mln from ~0.28 mln
Gapping down
In reaction to disappointing earnings/guidance:
- VIPS -15.2%, SWCH -4.7%, VOD -3.4%, HD -2.6%, EXP -1.7%, INVH -1.6%, AMRS -1.5%
Other news:
- PFNX 23.8% (Pfenex announces top-line results from its PF708-301 study, which showed comparable overall profiles between PF708 and Forteo after 24 weeks of daily injection in osteoporosis patients)
- MTDR -3.9% (announces 7 mln stock offering)
- AAXN -2.6% Axon files mixed securities shelf offering (56.99 -0.27)
- ATUS -1.5% (declared a one-time cash dividend of $2.035 per share of Altice USA Class A common stock and Class B common stock)
- LOW -1.2% (in sympathy with HD)
Analyst comments:
- CBSH -2% (downgraded to Underperform from Neutral at BofA/Merrill)
- SPOT -1.9% (initiated with a Sell at Loop Capital)
- F -0.5% (downgraded to Neutral from Overweight at Piper Jaffray)
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Gapping up
In reaction to strong earnings/guidance:
- MIME +6.5%, ALTR +3.9%, XNET +3.7%, SYMC +2.5%
Other news:
- PFNX +23.8% (Pfenex announces top-line results from its PF708-301 study, which showed comparable overall profiles between PF708 and Forteo after 24 weeks of daily injection in osteoporosis patients)
- NEWR +1.8% (commences $435 mln private placement of convertible senior notes due 2023) .
Analyst comments:
- NTLA +7.8% (upgraded to Buy at Chardan Capital Markets; tgt raised to $57.50)
- CRSP +3.5% (target raised to $72.50 at Chardan Capital Markets)
- VRX +3.4% (upgraded to Buy from Neutral at Mizuho)
- ULTA +2% (upgraded to Outperform from Perform at Oppenheimer)
- PVTL +1.9% (initiated with a Buy at Goldman)
- SMG +1.2% (upgraded to Buy from Hold at SunTrust)
- MU +1.2% (target raised to $101 at Stifel)
- FGEN +1% (upgraded to Buy from Neutral at Mizuho)
- FLR +0.9% (added to US 1 List at BofA/Merrill)
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RIP le décodeur: Canal+ mise sur l’Apple TV pour séduire les jeunes urbains
A partir du 17 mai prochain, Canal va proposer à ses abonnés de choisir entre son décodeur ou une Apple TV 4K embarquant l’application MyCANAL – et ceci, aux mêmes conditions, soit 6 euros par mois pour la location du boîtier, auxquels il faut rajouter un abonnement mensuel, à partir de 19,99 euros. L’offre ne concerne toutefois pas l’ensemble des abonnés : sur les 5,2 millions d’abonnés Canal, les 2 millions de foyers recevant l’offre par satellite ou par l’intermédiaire d’un fournisseur d’accès internet ne pourront pas y accéder.
C’est la première fois que le groupe de télévision cryptée propose une box autre que la sienne. Et c’est aussi la preuve que l’OTT (Over-The-Top, distribution de contenus par Internet, sans intervention d’un opérateur) s’est imposé en France comme un mode majeur de réception TV. A priori, le risque financier pèsera plutôt sur la chaîne payante, puisque Canal+ sera propriétaire des boîtiers. Cependant, dans cette configuration, elle n’aura pas à partager les revenus issus de l’abonnement, contrairement aux abonnements aujourd’hui conclus via l’Apple TV.
Pour la firme de Cupertino, c’est une façon originale de mettre en avant un device qui, même très apprécié de ses utilisateurs, n’a pas connu le succès commercial attendu depuis son lancement en 2007. Apple a récemment conclu un autre partenariat de ce type, en devenant la box TV de l’opérateur télécom suisse Salt (propriété de Xavier Niel) dans le cadre de l’offre Salt Fiber. L’Apple TV 4K 32 Go est proposée à la vente à 199 euros.
« Le meilleur décodeur du marché »
Pour Canal+, il s’agit désormais de mettre en oeuvre un nouveau volet de sa stratégie de reconquête, centrée sur l’expérience client, en ciblant notamment les jeunes urbains. « On veut faire de l’Apple TV un décodeur clef du dispositif, en particulier pour ceux qui utilisent internet pour accéder à la télévision, et qui ont un débit suffisant pour le faire », a déclaré à l’AFP Maxime Saada, le président du directoire de Canal+. Ce dernier précise même qu’à ses yeux, il s’agit du « meilleur décodeur du marché » — ce qui sonne en creux comme un désaveu certain pour les boîtiers maison.
La filiale de Vivendi a perdu plus de 300 000 abonnés en 2017, sévèrement concurrencée par les nouveaux acteurs, Netflix en tête. Le géant américain du streaming est d’ailleurs reconnu comme un modèle d’expérience utilisateur, notamment grâce à la qualité de son interface, tandis que celles des box des opérateurs TV ou des fournisseurs d’accès internet, poussives et peu ergonomiques, sont généralement vouées aux gémonies.
MergerMarket.com
Shire: Takeda cross shareholders seen supporting acquisition
15 MAY 2018
- Japanese financials and corporates seen silent owners
- General meeting precedents show company support
- Takeda may face objections from founding family
Takeda Pharmaceutical [TYO: 4502] might be able to count on support from its cross shareholders, which account for 30%-40% of its shareholder register, for its proposed acquisition of Shire [LON: SHP] at its EGM, said several fund managers and Takeda shareholders.
“Cross shareholders who do business with Takeda and have supply relationships basically do not vote against the interest of the pharmaceutical company,” said one Tokyo-based fund manager, who is familiar with Japan’s “peculiar” cross shareholding system.
Takeda and Shire announced a merger agreement on 8 May, under which each Shire shareholder will be entitled to receive USD 30.33 in cash and either 0.839 new Takeda shares or 1.678 Takeda ADSs for every Shire share they own. The deal is subject to Takeda shareholder approval of resolutions to approve the issuance of new equity at an EGM.
Cross shareholders are companies that do business with Takeda and hold Takeda shares to maintain their relationships with the pharma company. Currently, about 33.38% of Takeda’s shareholder register is accounted for by domestic financial institutions, 4.22% by domestic brokers, 5.09% by Japanese companies, 29.34% by foreigners and 27.94% by individuals and 0.02% by Takeda.
Almost all of these Japanese financial institutions and companies have traditionally been called silent owners of Takeda shares, in many cases due to the wide-ranging business relationships they have with the pharmaceutical company, according to these companies’ disclosures. A spokesperson at Takeda also agreed with this statement.
A spokesperson at one Japanese regional bank, one of Takeda’s leading shareholders, said: “We hold Takeda shares to strengthen our business relationship with Takeda. This stock holding is not for investment.” Asked whether the bank would act in line with Takeda’s interest at the upcoming EGM, the spokesperson said he cannot make any comments on individual situations.
Precedent votes
Nevertheless, there is some evidence that cross shareholders generally do not vote against the interests of the company at general meetings. In 2008, The Children’s Investment Fund (TCI) experienced a defeat in a proxy fight calling on J-Power’s (Electric Power Development) [TYO: 9513] shareholders to raise the energy wholesale company’s dividends.
At the time, John Ho, former head of TCI’s Asia operations, said: “Why [did] Mizuho, Nippon Life and Kajima vote the way they did? Today’s AGM result is distorted by these cross shareholders who do business with J-Power. This policy [of cross shareholdings] is designed to frustrate genuine investors and protect management.” So-called stable (or cross) shareholders accounted for about 34% at J-Power.
At Yushin Precision Equipment’s [TYO: 6482] AGM in 2016, 90% of its shareholders rejected one individual activist shareholder’s proposal to put a JPY 500m (USD 4.5m) cap on executive pay. However, the same proposal submitted by its board at its AGM last year won overwhelming support from shareholders.
“I think Takeda will be able to clear its EGM. Cross shareholders will never act against the company. It is clear if you look at Yushin’s case,” said Mitsutaka Yamaguchi, the individual activist.
Beginning June, last year, under the revision of Japan’s Stewardship Code, asset managers are now urged to reveal how they vote at a shareholding meeting. The disclosure of individual proxy votes will likely result in more institutional investors with relationship with Takeda casting “yes” votes for the Shire acquisition at the meeting, said one Tokyo-based governance lawyer.
“Generally, Japanese financial institutions would not object to any proposals related to business strategies like this acquisition from day one,” said a Tokyo-based fund manager at a major Japanese financial institution. “We can only judge whether it is a good decision after we see results,”
Possible opposition
Meanwhile, Takeda may encounter opposition from some individual shareholders at its AGM in June and its subsequent EGM, said the first fund manager. A group of 15 shareholders linked to Takeda’s founding family criticized Takeda’s stagnant performance at its AGM last year, according to the AGM minutes.
The group submitted a proposal to remove Yasuchika Hasegawa from the position of current director and chairman of the board, to take the responsibility of the company’s “not so bright” performance stemming from the acquisition of Nycomed.
The shareholder proposal was nevertheless rejected overwhelmingly by 92% of shareholders at the AGM, overcoming earlier opposition from the group.
Takeda’s bid for Shire is not a particularly good deal for the acquirer, said a fund manager at a UK-based firm that owns both Shire and Takeda stock. The fund manager said he was not in favour of the deal, characterizing it is a combination of poor strategy and financing challenges.
The Takeda spokesperson said the company plans to thoroughly explain to all shareholders, including its founding family, about the rational of the planned Shire acquisition. The spokesperson said the founding family’s shareholding should not be significant, although they do not have any knowledge of their shareholding.
An individual shareholder, who bought Takeda’s shares at JPY 3,755 shortly after the 11 March 2011 earthquake, said she will hold onto the stock because Takeda pledged to keep its per share dividend unchanged at JPY 180.
“I look forward to additional revenue synergies from combined development capabilities,” said the shareholder.
As for the Government Pension Investment Fund (GPIF), Takeda’s largest shareholder with a 7.35% stake, several fund managers hired by GPIF exercise their voting rights “at their discretion”, but they are nevertheless obliged to report to GPIF how they have voted on individual situations, said a GPIF spokesperson.
An analyst said a growing number of institutional investors are expected to use recommendations of proxy advisors, such as ISS (Institutional Shareholder Service), to show the process of their voting decisions has been appropriate.
“The disclosure of voting records will encourage them to vote in line with ISS recommendations so they can prepare explanations when asked by GPIF why they voted the way they did,” said the analyst.
“I view this deal as an accretive transaction. Earnings contributions Takeda can get from the enlarged Takeda will be great despite new share issuance. Also, Takeda gets Shire’s future pipelines,” said an asset manager at Hong Kong-based hedge fund, who owns Takeda shares.
Shire did not comment.