>>> Hammerson the subject of stakebuilding by activist investor Elliott Advisors

Hammerson the subject of stakebuilding by activist investor Elliott Advisors
21 APR 2018
Hammerson [LON:HMSO], a UK-based property company, has seen the activist investment firm Elliott Advisors build a 1.52% stake. The stake, held via derivatives, was disclosed in a London Stock Exchange filing on Friday, 20 April.
Hammerson agreed to acquire UK-based rival Intu [LON:INTU] in December, but Hammerson’s board withdrew its recommendation for the offer on 18 April, citing a downturn in the UK's retail sector and changing "market dynamics."
The French property company Klepierre [EPA:LI] made a 615p per share bid approach for Hammerson last month, which Hammerson rejected. Klepierre followed up with a 635p per share proposal on 11 April, which was also rejected. Klepierre announced on 13 April that it does not intend to make an offer for Hammerson.
Hammerson’s market capitalisation stood at GBP 4.28bn (EUR 4.86bn) at the close of trading in London on Friday, 20 April.

>>> Temenos will not raise offer price for Fidessa; to launch share buyback of u

Temenos will not raise offer price for Fidessa; to launch share buyback of up to USD 250m in 2Q18
21 APR 2018
On 20 April Temenos (SWX: TEMN) issued the following statement regarding Fidessa group plc (LON: FDSA) and a proposed USD 250m share buyback.
Press release:
Temenos Group AG ("Temenos") notes the announcement by Fidessa today. The Board of Temenos announces that it does not believe that it would be in the best interests of Temenos shareholders for Temenos to amend the terms of its offer for the entire issued and to be issued ordinary share capital of Fidessa which was announced on 21 February 2018 (the "Proposed Acquisition"). The Board of Temenos recognises the importance of maintaining strong financial discipline and carefully considering capital allocation in order to optimise shareholder returns. Accordingly, Temenos will not be making a revised offer for Fidessa.
In light of the announcement by Fidessa today that it proposes to adjourn the Scheme Court Meeting and the General Meeting that had been convened to consider the Proposed Acquisition, the Board of Temenos confirms that it will not consent to an extension of the date by which the Scheme Court Meeting and the General Meeting must be held, and therefore, should there be an adjournment of either the Scheme Court Meeting or the General Meeting, the Proposed Acquisition will lapse in accordance with its terms on 28 April 2018. Further, in light of the announcement by Fidessa, Temenos has notified Fidessa of the termination of the Co-operation Agreement in accordance with its terms.
Commenting on the announcement, Andreas Andreades, Executive Chairman of Temenos said:
“We have a very significant addressable market in the banking segment which is seeing strong growth underpinned by multiple structural drivers including digitisation, regulation and the move to open banking. We are the leader in this winner-takes-all market, having won all the key strategic deals, and expect our business to continue to achieve double-digit organic revenue growth annually as we pull further ahead of the competition.
In this context we decided it was not in the best interest of our shareholders to raise our offer price for Fidessa. I am confident we will continue delivering very strong shareholder value as we grow the business and are in an excellent position to take advantage of other opportunities to enter adjacent segments as they arise in a manner that will create exceptional value as we are doing in our core business, and capture a greater share of the IT and software spend of banks."
The Board of Temenos has also given approval for a share buyback of up to a total of USD 250m to be launched in Q2 2018, subject to regulatory approval. The share buyback will be funded through Temenos’ strong cash flow generation, with the company’s leverage expected to be maintained at 1-1.5x EBITDA by year end. Temenos intends to use the repurchased shares for potential acquisitions and/or for any other corporate purposes.
Capitalised terms used, but not defined, in this announcement shall have the same meaning as set out in the scheme document published by Fidessa in connection with the Proposed Acquisition on 13 March 2018.

>>> Honeywell up 1.5% following beat and raise report; spin-offs on track (148.

Honeywell up 1.5% following beat and raise report; spin-offs on track (148.13)
  • Strong sales, orders and EPS growth, good margin expansion, robust cash generation; Impactful new Connected product launches.
  • "We are making great progress in transforming Honeywell into a software-industrial leader. In the first quarter, we had significant new Connected product launches and commercial wins across our portfolio. The preparations to spin-off our Transportation Systems and Homes businesses are well underway, and we expect those to be complete by the end of the year."
  • U.S. Section 232 Steel and Aluminum Tariffs Enacted March 2018:
    • - HON limited direct purchases of steel / aluminum ... mostly indirect (tier 2) exposure - HON expects minor total impact from tariffs (<$10M on ~$60M imports) - Inflationary impact on non-imported steel and aluminum more relevant - Largest exposure in Performance Materials and Technologies: ~2/3 of HON exposure - Risk mitigation strategies developed in all businesses -- expect impact to be fully offset><10M on $60M in imports) Inflationary impact on non-imported steel and aluminum more relevant - Largest exposure in Performance Materials and Technologies: ~2/3 of HON exposure - Risk mitigation strategies developed in all businesses -- expect impact to be fully offset.
  • U.S. Section 301 Proposed Tariffs on Chinese Original Goods Under Comment Period Until May 11:
    • - Currently assessing HON exposures and developing mitigation strategies - Largest expected HON impacts: Aerospace (turbine parts), HBT, and SPS - China retaliatory tariffs could impact PMT / UOP (catalysts, adsorbents) - U.S. agreed to hold consultations with China -- developments ongoing - Closely following progress, while simultaneously developing mitigation plans to offset impacts
  • China grew over 20%. Higher growth regions were high single digits; India (will improive throughout the year) and middle east mid-single digits Brazil remains challenged
  • Stock absolutely compelling in the low-$140s; bought back more stock than usual in Q1; also looking for acquisitions.
  • Boeing relationship remain strong.

>>> Embraer, Boeing close to reaching agreement on business combination - report

Embraer, Boeing close to reaching agreement on business combination - reports (translated)
20 APR 2018
Embraer [NYSE:ERJ] and Boeing [NYSE:BA] are close to announcing a business combination agreement, Brazilian newspapers O Globo and O Estado de Sao Paulo reported citing unnamed sources for the information.
Both items said that the agreement will include the creation of a new company that will have Embraer’s commercial aircraft producing unit, which focuses on aircrafts with up to 150 seats. The US-based company will have an 80% stake in this new company, while Embraer the remaining 20%, the Portuguese-language articles noted.
O Estado de Sao Paulo said that the deal will not be announced next week because the Brazilian defense minister Joaquim Silva will be out of the country, the item added.
A third newspaper, Folha de Sao Paulo, said that the parties still are discussing the composition of the board of directors of the new company to be created. The deal will be announced once that issue is resolved, the article said citing unnamed sources.
O Estado de Sao Paulo added that the Brazilian government wants at least one seat on the board of the new company to be occupied by a Brazilian resident, and Boeing has rejected the idea.
Link to original source (O Globo)
Link to original source (O Estado de Sao Paulo)
Link to original source (Folha de Sao Paulo)