Pre-MarketsML
AMS - Apple supply chain strong on Apple beat and buyback post close (86.5).+5%
DIALOG - Apple supply chain strong on Apple beat & buyback post close (18)+3-4%
OCADO - Another international deal, this time in Sweden with ICA (567.5)..+2-3%
SWISSCOM - Revs 2% ahead, EBITDA inline and 2018 outlook confirmed (490)..+2-3%
INMARSAT - Mixed as govt misses, aviation inline & guidance reiterated (369)+2%
HOWDEN - UK revs +14.8% and sales growth driven by increase in vols (490)...+2%
NOVOS - EBIT beat and guidance raised, sales growth 3-5% v prior 2-5% (300).+2%
STANDARD - PBT Inline, revs only slightly weaker but capital strong (785)...+2%
CONVATEC - Org growth +3.7% ahead of cons for 2.4% and FY guide reit'd (222)+2%
VIVENDI - Management to present findings to board on future of UMG (22.2).+1-2%
MINERS - Copper +1.25%, Iron ore fut +1.8% and BHP OZ -0.26%, RIO OZ +0.33%.+1%
BOSS - Small beat with EBITDA 2% ahead and sales growing 7% v +5.5% (78.6)..+1%
SAGE - No material changes to the fin info or guidance made 13th Apr (636.4)u/c
RYANAIR - Traffic grew +9% YoY to 12.3m and load factor is unch at 96% (16).u/c
PROSIEBEN - Sentiment negative that FB might enter the dating market (29).-1-2%
DIRECT LINE - Small miss. Motor premiums +3%, with total group GWP -5% (370)-2%
PADDY POWER - Soft with revs -2% YoY and underlying EBITDA -6% CC (7109.9)..-2%
RBC
*ASML/DLG: +1% positive read from AAPL strength overnight.
*BOSS: +2% Q1 retail LFL ahead, gross margins light, strong into numbers.
*CONVATEC: 0% Q1 organic revenue growth ahead, solid start to year.
*DIRECT LINE: -1% Q1 trading statement mixed, gross written premiums @ £769.9M.
*EVOTEC: +1% announced expanding its CRISPR service offering.
*FIAT: -1% US SAARS data overall sector weak.
*GEM DIAMONDS: 0% management changes, name COO Velloza deputy CEO.
*GLENCORE: +2% obtained temporary injunction against Gertler.
*HOWDEN: +2% on track with FY'18 plans, UK looks solid.
*INDIVIOR: +2% Q1'18 numbers ahead, FY'18 guidance confirmed.
*INTESA: +1% BOERSEN-Z: ISP wants to grow on its own.
*ISAT: -2% Q1 revenues miss, FY'18 guidance unchanged, not enough.
*LUNDIN PETRO: 0% Q1 numbers in line, FY'18 guidance unchanged.
*MITTAL: -1% US waiver pushed to June 1, ADR move from Monday.
*NOVO: +4% Q1 numbers ahead, solid, boosts FY'18 forecasts.
*OCADO: +5% to develop ICA's online grocery business in Sweden.
*OERLIKON: +3% Q1 orders beat, EBITDA ahead, FY'18 guidance maintained.
*PADDY POWER: -2% Q1 trading update light, EBITDA guidance light.
*RENAULT/UG: +2% French car sales +9% for April, RNO +11% and UG +20%.
*SAGE: 0% H1 numbers in line, no material changes to guidance.
*SCHNEIDER: -1% expands in India with $2.1B buy of L&T unit, 3% ex-div today.
*STANDARD CHART: +1% Q1 slight miss @ top level, stronger capital and loan growth.
*SWISSCOM: +1% Q1 revenues & EBITDA ahead, driven by Fastweb.
CS
Convatec -2-3% Revs ahead but driven by infusion, Ostomy Care weak
Direct Line -2% Trading update slightly disappointing
DWS M/P CS INITIATE with NEUTRAL (Valuation)
GN Store +2% Organic growth 10% cons 8%, hearing guidance unchanged.
Hugo Boss UNCH Q1 EBITDA 3% beat, sales 00.5% beat, confirms FY guidance
Indivior M/P 1Q Sales $255m vs cons $280m, Reconfirms 2018 Guidance
Inmarsat +1% Revs 1% below cons, EBITDA 1% ahead, Reiterate outlook
IWG -1% Revs ahead, FX headwinds, increased costs
Mittal -1-2% ADR's weak vs Mondays European close
Miners +0.5-1% Copper +1.55%, Brent -0.65%, Iron Ore closed, China -0.30%
Novo Nordisk +2-3% 1Q EBIT DKK12.45B est DKK11.61B, boost guidance
Norsk Hydro -2% US officials softened rhetoric on sanctions against Rusal
Ocado +3-5% Announce a deal with ICA for Smart Platform
Oerlikon +1-2% Revs CHF813m vs cons CHF810m, EBITDA ahead
Oils -1% US API build of 3.43m barrels vs a build of 1m last week
Paddypower -2-3% EBITDA guidance for FY is €470-495m, vs CS ests €499m
Ryanair M/P Load factor flat, passengers +9%
Sage M/P H1 rev meets estimates, no material changes to guidance
Sensirion M/P CS INITIATE with NEUTRAL (Valuation)
Staffline -1-2% CS DOWNGRADE to UNDERPERFORM (Higher risks)
Stan Char +1% Q1 PBT of $1187m cons $1206m, CET1 ratio ahead
Swisscom -1% Q1 Net rev CHF 2,89bln est CHF 2.83bln, Outlook unchanged
Thom Cook +1% CS UPGRADE to OUTPERFORM (New operating model)
exane :EARLY INDICATIONS...
BOSS GY +2%/+3%
CTEC LN + 1%
LUPE SS +1%
NOVOB DC + 2%
OCDO LN +4% L
RYA LN +1%
SAN FP - 50 Bps
SCMN SW: +1%
STAN LN: +1%
SU FP +0.5%
Stocks in Asia declined and European futures signaled a lower open after the Federal Reserve said inflation is close to its target, without indicating any need to waver from its path of gradually tightening monetary policy. The dollar dropped. Hong Kong stocks underperformed just as Chinese smartphone maker Xiaomi Corp. filed for what’s expected to be the world’s biggest IPO since 2014. Chinese shares rebounded from earlier losses. Equities rose in Sydney, with recently battered Australian banks extending a recovery. Japan was closed for a holiday. FTSE 100 futures declined. The dollar retreated after hitting its highest since January, while the euro and pound gained.Fed officials may have signaled their willingness to allow inflation to exceed their 2 percent goal somewhat by adding a reference to the “symmetric” nature of their target. The Federal Open Markets Committee also noted a soft patch in growth in the first quarter, removing a reference in the March statement that the economic outlook had “strengthened in recent months.” They balanced that out by noting strong growth in business investment.
Nikkei -0.16% Hang Seng -1.02% CSI +0.89% Shanghai +0.77% Shenzen +0.91%
Eur$ 1.1988 CNH 6.3575 CNY 6.3608 JPY 109.59 GBP 1.3601 CHF 0.9969 RUB 63.6684 WTI|$ 67.89 -0.06%
S&P +0.05% EuroStoxx -0.37% FTSE 0.35% DAX -0.40% SMI -0.10%
Macro :
- French Fin Min: Ending Exit Tax to Boost France Attractiveness
Keep an eye on :
- ABI BB : AB InBev Drop to Multi-Year Low on Molson 1Q Overdone: Jefferies
- ADP FP : Aeroports De Paris First Quarter Sales +37.3%
- ADS GY : Adidas First Quarter Operating Profit Beats Highest Estimate
- AIR FP : Airbus, Bombardier Appoint New Head of C Series Program: Reuters
- ANDR AV : Andritz Expects to Make Up for Weak 1Q in Coming Months (1)
- NDA GY : Germany’s BaFin Reviewing Aurubis Share Movements: Boerse Online
- AR4 GY ; Aurelius First Quarter Revenue Declines to EU912.3 Million
- AKE FP : Arkema 1Q Adjusted Net EU195m; Confirms 2018 Targets
- BAMNB NA : BAM First Quarter Adjusted Pretax Profit EU19 Mln
- BAYN GY : Bayer Lowers 2018 Sales, Adj. Ebitda Forecasts
- BPOST BB : Bpost First Quarter Adjusted Ebitda Misses Estimates --> Bpost 1Q May Trigger Single-Digit Consensus EPS Cuts: Jefferies
- GBF GY : Bilfinger on Way to Release From DOJ Supervision by Yr End: BZ
- BRAV SS : Bravida First Quarter Net Sales Beat Highest Estimate
- DB1 GY : Deutsche Boerse May Cut About 300 Jobs, Handelsblatt Reports
- EDF FP : EDF’s Hunterston B7 U.K. Reactor to Stay Offline for More Checks
- EKT SM : Euskaltel First Quarter Revenue Meets Estimates
- RF FP : Eurazeo 1Q Economic Rev. EU1.42B
- FINGB SS : Fingerprint About to Reach Its 2018 Goal for New Business Areas
- FRE GY : Fresenius SE First Quarter Ebit Meets Estimates
- GEBN SW : Geberit First Quarter Revenue Beats Highest Estimate
- GLEN LN : Glencore 1Q Own-source Copper Production 345,400 Tons
- RMS FP : Hermes 1Q Sales at Constant FX Beat Estimates, Outlook Confirmed
- INTER NA : Intertrust: Bookbuild Abt 7.5M Shares for Blackstone Perpetual
- ING FP : Payments Stocks Drop After Amazon Said to Push Its Pay System
- IFX GY : Infineon Boosts Full Year Segment Result Margin Forecast
- KYG ID : Kerry Group First Quarter Revenue +0.1%
- SKB GY : Koenig & Bauer First Quarter Revenue Misses Lowest Estimate
- LRE LN : Lancashire First Quarter Gross Written Premiums $215.8 Mln
- LR FP : Legrand Confirms FY Targets; to Pursue Strategic Acquisitions
- LEO GY : Leoni First Quarter Sales Beat Highest Estimate
- LOGN SW : Logitech Fourth Quarter Sales Beat Highest Estimate
- LUPE SS : North Sea Brynhild Oil Field Restart Hampered by Host FPSO
- NEX FP : Nexans 1Q Rev. EU1.03B; Confirms Strategic Plan Targets
- OR FP : L’Oreal Acquires Korean Makeup and Fashion Brand Stylenanda
- ORA FP : Orange Is Said to Hire Credit Agricole’s de Leusse: Challenges
- ORP FP : Orpea 1Q Organic Growth 5.4%; Co. ‘Confidently’ Confirms Targets
- OSR GY : Osram 2Q Profit Misses Ests, Will Sell U.S. Service Business
- PFV GY ; Pfeiffer Vacuum First Quarter Sales EU170.4 Mln
- RATOB SS : Ratos First Quarter Loss Per Share SEK0.47
- GLE FP : SocGen Is Said Ready to Pay Up to $1 Billion to End U.S. Probes
- SOLB BB : Solvay First Quarter Adjusted Ebitda Meets Estimates
- SAZ GY : Stada First Quarter Ebitda EU118.6 Mln
- SCHA NO : Schibsted First Quarter Ebitda Misses Estimates
- SHL GY : Siemens Healthineers Second Quarter Revenue Meets Estimates
- SHP LN : Takeda May Get 3T Yen Loan From MUFG, SMFG, JPMorgan: Nikkei
- SUBC NO : Subsea 7 Withdraws Proposal to Buy McDermott After Deal With CBI
- SRCG SW : Sunrise First Quarter Ebitda CHF137 Mln
- HO FP : Thales 1Q Sales Up 4.1% to EU3.4b; New Orders Up 34% to EU3b
- UBSG SW : UBS Applies for 51% Ownership in China Brokerage Venture: Xinhua
- VIE FP : Veolia 1Q Current Net Income EU193Million; Confirms Targets
- VNA GY : Vonovia Makes Higher Bid for Victoria Park Than Starwood
- VNA GY : Vonovia Sees Full Year FFO I EU1.00 Bln To EU1.02 Bln
- XPO US : XPO Logistics Considers Up to $8b For Potential New Deals: FT
>>> Up
* Accor Upgraded to Add at AlphaValue
* Iberdrola Upgraded to Add at AlphaValue
* Lagardere Upgraded to Overweight at Barclays; PT 30 Euros
* Lundin Petroleum Raised to Overweight at Barclays; PT 305 Kronor
* Panalpina Upgraded to Hold at Jefferies
* Telefonica Deutschland Raised to Overweight at Barclays
* Vinci Upgraded to Buy at SocGen; PT 100.70 Euros
*
>>> Down
* BT Downgraded to Equal-weight at Barclays; PT 2.80 Pounds
* Direct Line Downgraded to Neutral at JPMorgan; PT 4.30 Pounds
* Lundbeck Cut to Sell at DNB Markets; Price Target 330 Kroner
* Metro AG Downgraded to Equal-weight at Barclays; PT 12.50 Euros
* Moncler Downgraded to Hold at Jefferies
>>> Initiation
* Alfen Beheer BV Rated New Overweight at Barclays; PT 14 Euros
* Elkem Rated New Buy at ABG; PT 38 Kroner
* Frontier Developments Rated New Buy at Citi; PT 15.40 Pounds
* NIBC Rated New Buy at Citi; PT 10 Euros
After Hours Summary: NSIT +15%, DATA +6%, DXCM +5%, KHC +4% are higher, while SPOT -8%, CRUS -7%, CERN / SQ / AIG / FIT -6%, TSLA -5% are lower following earnings/guidanceAfter Hours Gainers:
Companies trading higher in after hours in reaction to earnings/guidance: NSIT +14.6%, CZR +7.4%, SFS +6.6% (light volume), EXEL +6%, DATA +5.7%, DXCM +4.6%, KHC +3.9%, MIC +3.5%, HCC +3.3%, MET +2.1%, BZH +2%, ZNGA +1.6%
Companies trading higher in after hours in reaction to news: MTGE +6.7% (to be acquired by Annaly Capital [NLY] for $19.65/sharein cash and shares of Annaly common stock), CLLS +2.2% (ticking higher; submits an IND application to the FDA requesting approval to initiate a Phase 1 clinical trial for UCART22 for the treatment of B-cell acute lymphoblastic leukemia), ACIA +1.1% (authorized the repurchase of up to $60 mln of common stock through December 31, 2018)
After Hours Losers:
Companies trading lower in after hours in reaction to earnings/guidance: PACB -17.5%, SPOT -7.9%, CRUS -7.1%, HOLX -6.2%, CERN -6.1%, SQ -6.1%, AIG -5.9%, FIT -5.6%, PXLW -5.5% (light volume), FEYE -5.1%, HOS -5% (light volume), TSLA -4.9%, ESRX -2.6%, DDD -2.3% (also Apergy will replace 3D Systems in the S&P MidCap 400, who will replace Impax Laboratories in the S&P SmallCap 600), WPX -2.1%, AI -1.9%, CLR -1.8%, HGV -1.8%, AUY -1.7%
Companies trading lower in after hours in reaction to news: AKAO -31.9% (FDA 'in favor of plazomicin for complicated' UTI), MEDP -1.4% (commences 3 mln common stock offering by selling shareholder Cinvven Capital), PANW -0.9% and FTNT -0.4% (following FEYE results)
Notable post-earnings movers
- Post-earnings gainers: NSIT +14.3%, SFS +6.6%, ACLS +6.3%, DATA +5.1%, CZR +4.8%, EXEL +4.8%, KHC +4.6%, LOPE +4.3%, HCC +4.1%, GIL +3.8%, FMC +3.8%, BZH +3.6%, LADR +3.3%, ZNGA +3%, MEET +3%, DXCM +2.8%, MET +2.6%
- Post-earnings losers: PACB -19.8%, CERN -7.9%, SPOT -7.6%, CRUS -7.1%, FEYE -6.2%, SQ -5%, HOLX -4.9%, AIG -4.8%, XPO -2.7%, AUY -2.7%, WPX -2.4%
Closing Market Summary: Upbeat Apple Earnings Can't Uphold Broader MarketThe major averages finished the midweek session on a lower note despite an upbeat quarterly earnings report from Apple (AAPL 176.57, +7.47) and a status quo directive from the Federal Open Market Committee. The S&P 500 and the Dow lost 0.7% apiece, while the tech-heavy Nasdaq declined 0.4%. Small caps advanced though, sending the Russell 2000 higher by 0.3%.
As expected, the Fed unanimously decided to leave the federal funds target range unchanged at 1.50% to 1.75% on Wednesday while laying the groundwork for a rate hike at the June meeting -- which would be the second rate increase of 2018. Following the policy directive -- which noted that inflation on a 12-month basis is expected to run "near" the Fed's 2.0% target over the medium term -- the market is still anticipating at least three rate hikes in total this year, with the chances of a fourth hike sitting near 50% (according to the fed funds futures market).
The S&P 500 briefly touched positive territory following the Fed's decision, reclaiming the modest loss it held throughout the morning, but soon moved sharply lower, notching new session lows along the way. The benchmark index never recovered from the late-afternoon drop and eventually finished near its worst mark of the day.
Wednesday's ending, while bitter, wasn't really all that surprising as equity futures struggled to take off overnight despite an upbeat earnings report from Apple -- the S&P 500's largest and most influential component -- which was released on Tuesday evening. Apple beat earnings estimates for its fiscal second quarter, raised its profit guidance for Q3, increased its share repurchase program by $100 billion, and raised its dividend by 16%. The tech giant's shares rallied 4.4% following the report, as one might expect, but the S&P's technology sector finished a tick lower.
Social media giant Facebook (FB 176.07, +2.21) did have a positive session though, adding 1.3%, after its rival Snap (SNAP 11.03, -3.10) missed revenue estimates and reported lower-than-expected daily active users (DAUs) for the first quarter; SNAP shares tumbled 21.9%, hitting a new all-time low.
In total, 10 of the 11 S&P groups finished Wednesday in the red, with financials (-1.2%), health care (-1.4%), consumer staples (-1.9%), and telecom services (-1.8%) leading the retreat. Gilead Sciences (GILD 66.88, -5.68) led the health care sector lower, dropping 7.8%, after reporting worse-than-expected earnings and revenues for Q1. Meanwhile, in the consumer staples group, CVS Health (CVS 65.94, -2.06) declined 3.0% despite beating Q1 earnings estimates and issuing upbeat guidance. Energy (+0.4%) was the only advancing sector.
U.S. Treasuries finished Wednesday on a modestly higher note, with yields slipping across the curve; the benchmark 10-yr yield declined one basis point to 2.96%. Meanwhile, the U.S. Dollar Index jumped 0.4% to 92.59, a fresh 2018 high, and WTI crude futures rallied 0.9% to $67.91 per barrel.
On the data front, the ADP National Employment report for April was released on Wednesday, showing an increase of 204,000 (consensus 225,000); the March reading was revised to 228,000 from 241,000. The ADP reading is seen as a prelude to the BLS's nonfarm payrolls figure (Briefing.com consensus 190,000), which will be released on Friday.
Looking ahead to Thursday, investors will receive a big batch of economic data that includes the preliminary readings for first quarter Productivity (Briefing.com consensus +0.8%) and Unit Labor Costs (consensus +3.0%), the March Trade Balance report (Briefing.com consensus -$49.8 billion), weekly Initial Claims (consensus 220K), March Factory Orders (consensus +1.2%), and the ISM Services Index for April (consensus 58.3).
- Nasdaq Composite: +2.9% YTD
- Russell 2000: +1.3% YTD
- S&P 500: -1.4% YTD
- Dow Jones Industrial Average: -3.2% YTD
Tesla beats by $0.18, beats on revs; expecting positive GAAP net income and positive cash flow in Q3 and Q4
Reports Q1 (Mar) loss of $3.35 per share, excluding non-recurring items, $0.18 better than the Capital IQ Consensus of ($3.53); revenues rose 26.4% year/year to $3.41 bln vs the $3.3 bln Capital IQ Consensus.
Model 3 production hit 2,270/week in April for the 3rd straight week over 2,000
"Our goal is to produce ~5,000 Model 3 vehicles per week in about two months. Model S and X deliveries in Q2 will likely be similar to Q1 but should pick up considerably in Q3 to achieve our goal of 100,000 deliveries for the full year.
Our long-term gross margin target of 25% for Model 3 has not changed. In the medium term, we expect to achieve slightly lower margin due to higher labor content in certain areas of manufacturing where we have temporarily dialed back automation, as well as higher material costs from recently imposed tariffs, commodity price increases and a weaker US dollar. On the other hand, our average selling price is significantly higher than prior projections, so we expect to achieve higher gross profit per vehicle than we previously estimated.
With increasing capacity for Powerwall and Powerpack products at Gigafactory 1, energy generation and storage revenues should continue to grow significantly throughout the year. Energy storage gross margins should therefore become positive in the second half of 2018. Our solar business is likely to experience mild growth for another quarter or two before our revised sales strategy starts to show its full impact in final deployments.
Quarterly non-GAAP operating expenses should grow sequentially at approximately the same rate as in the past four quarters, with our gross profit expected to grow much faster than our operating expenses. Thus, provided that we hit the 5,000 unit milestone in our projected timeframe and execute to the rest of our plan, we will at least be profitable in Q3 and Q4 excluding non-cash stock based compensation and we expect to achieve full GAAP profitability in each of those quarters as well. Also, considering our capex targets, we expect to generate positive cash in Q3 and Q4, including the inflow of cash that we receive in the normal course of our business from financing activities on leased vehicle and solar products.
We have significantly cut back our capex projections by focusing on the critical near-term needs that benefit us primarily in the next couple of years. At this stage, we are expecting total 2018 capex to be slightly below $3 billion, which is below the total 2017 level of $3.4 billion. Ultimately, our capex guidance will develop in line with Model 3 production and profitability."
Sprint beats by $0.04, beats on revs; Q4 prepaid churn was 4.58% (5.17 -0.25)
Reports Q4 (Mar) earnings of $0.02 per share, excluding non-recurring items, $0.04 better than the Capital IQ Consensus of ($0.02); revenues fell 5.3% year/year to $8.08 bln vs the $7.99 bln Capital IQ Consensus.
Reported Q4 postpaid phone net additions of 55,000 marked the eleventh consecutive quarter of net additions; Q4 prepaid net additions of 170,000
Prepaid churn of 4.58% was the lowest in three years; for Q4, postpaid churn was 1.78%, prepaid churn was 4.30%
Postpaid ARPU was $44.40, prepaid was $37.15
The company expects FY18 adjusted EBITDA of $11.3 billion to $11.8 billion. Including the impact of the new revenue recognition accounting standard, adjusted EBITDA is expected to increase to a range of $11.6 billion to $12.1 billion.
For FY18, co expects cash capital expenditures excluding leased devices to be $5 billion to $6 billion.
Co also announced that its Board of Directors has elevated Marcelo Claure to Executive Chairman, and appointed Michel Combes to the role of CEO. In their new roles, Claure and Combes will collaborate on the continued execution of Sprint's strategy as well as its planned combination with T-Mobile. The transition is expected to occur on or before May 31, 2018. In connection with these changes, Sprint has initiated a search for a new Chief Financial Officer. The Company will consider internal and external candidates.
Spotify reports Q2 results, reports revs in-line with prior guidance; guides Q2 revs in-line; reaffirms FY18 revenue guidance (169.99 +5.06)
Reports Q1 (Mar) loss of €1.01 per share. The Capital IQ Consensus of (€0.29). Revenues fell 0.9% year/year to €1.14 bln vs the €1.14 bln Capital IQ Consensus. This is inline with its guidance of EUR1.10-1.15 bln.
Gross Margin was 24.9%, above the high end of its guidance range of 23-24%. Excluding adjustments to prior period estimates primarily related to changes in rights holder liabilities booked in the quarter, it would have finished at the high end of our stated range. These adjustments accounted for approximately 124 basis points of Gross Margin in Q1.
SPOT finished the quarter with 170 million Monthly Active Users (MAU) and 75 million Premium Subscribers, up 30% and 45%, respectively, y/y.
Co issues in-line guidance for Q2, sees Q2 revs of 1.1-1.3 vs. €1.29 bln Capital IQ Consensus Estimate. Expects MAUs of 175-180 mln, up 28-32% y/y; gross margin of 24-26%; and operating loss of EUR60-140 mln
Co issues reaffirms revenue guidance for FY18, sees FY18 revs of 4.9-5.3 vs. €5.2 bln Capital IQ Consensus Estimate. Expects MAU of 198-208 mln; gross margin of 23-25%; operating loss of EUR 230-330 mln.
Carlyle's Novolex in lead to acquire Newell Brands' Waddington -sources
Reuters Staff
2 MIN READ
May 2 (Reuters) - Novolex Holdings Inc, a packaging manufacturing company owned by buyout firm Carlyle Group LP , is in the lead to acquire Newell Brands Inc’s unit Waddington Group Inc for more than $2 billion, three people familiar with the matter said.
A deal for Waddington, which makes disposable cutlery and drinkware for the food service sector, would be the first major divestiture by Newell since it said in January it would explore options for several of its business lines, including Rubbermaid Commercial Products and Mapa.
Carlyle and Newell are in the process of finalizing deal terms after Novolex made the best offer in an auction for Waddington, and could reach an agreement in the next few days, the sources said on Wednesday, cautioning there was always a possibility that negotiations fall through at the last minute.
The sources asked not be identified because the matter is confidential. Carlyle and Newell declined to comment.
Newell, a U.S. consumer products maker, ended a proxy fight with activist hedge fund Starboard Value LP last month, with the company agreeing to add three new directors to its board. Billionaire investor Carl Icahn agreed to give up two of the four seats he secured earlier this year to pave the way for the addition of two new independent directors.