Bezeq board changes may jeopardise Eurocom-Saidoff deal - report
06 MAR 2018
The fight to appoint three new directors at B Communications, the parent firm for Bezeq, threatens to jeopardize US-Israeli businessman Naty Saidoff's offer to take over Israeli communications company Eurocom, Globesreported citing banking sources.
Bezeq chairman David Granot is attempting to block the appointment of three directors to the board of B Communications, the immediate holding company of Israeli telecommunications firm Bezeq. Eurocom is the ultimate holding of Bezeq.
Bezeq chairman David Granot is attempting to block the appointment of three directors to the board of B Communications, the immediate holding company of Israeli telecommunications firm Bezeq. Eurocom is the ultimate holding of Bezeq.
The Saidoff group has informed the banks that there was a material deterioration in relation to the proposed acquisition. Although Saidoff is not currently planning to withdraw, it warned that things may change if the banks fail to act and Saidoff is unable to make use of the control permit it had for Bezeq, according to the report.
The report said that Eurocom creditors are fully aware of the risks posed to the Saidoff-Eurocom deal should Granot be successful in thwarting the appointments and they are attempting to persuade financial institutions not to support Granot's position.
Link to the original source.
A report in Ha'aretz said Saidoff is looking to block changes to the way Bezeq appoints board members. Bezeq's acting chairperson Granot and the Psagot Investment House have proposed a change to the way Bezeq's directors are nominated. Under the proposals minority shareholders would be allowed work jointly tonominate directors. Saidoff believes this would render any future control of Bezeq meaningless and is seeking an injunction blocking the proposed changes, according to the report.
Thales chief warns on progress of European defence consolidation
Italian elections could jeopardise creation of alliance between Fincantieri and Naval Group
Italy’s election, which saw anti-establishment parties make sweeping gains, could throw the progress of European defence consolidation into doubt, said the head of one of Europe’s largest defence companies.
The elections could jeopardise the creation of an alliance between Italy’s Fincantieri and France’s state-owned Naval Group, which is 35 per cent owned by Paris-based Thales.
“We need to understand what is the policy of this new government . . . Probably new ministers will be appointed and new ministers may have a different opinion,” said Patrice Caine, chief executive of Thales, while stressing it was too soon to prejudge what government might be formed in Italy.
Mr Caine was speaking as his company delivered full-year results that saw sales, earnings and order intake beat market expectations, with net income under-performing after a one-off hit by US and French tax reforms.
The results pushed Thales shares up 6.5 per cent in early Paris trading.
France and Italy last year announced the creation of a study group to explore a potential alliance between the two defence groups in order to create a “European champion” in military shipbuilding.
Fincantieri and Naval are due to report on the shape of any agreement by June and a deal risks being delayed or reconsidered by elections that saw populist and Eurosceptic parties position themselves to be the dominant force in a future Italian government.
The creation of a European champion in military shipbuilding was already fraught with difficulties.
“[Naval and Fincantieri] only just started down the road, there are a lot of topics to be discussed,” said Mr Caine. “We have just begun to work on difficult topics like mutual dependence, how do we export from Italy, from France. What are the impacts in terms of employment, which is not neutral for politicians.”
Mr Caine also noted that the overlaps between Thales and Leonardo, a large Italian defence company which supplies Fincantieri, made any deal potentially tricky.
“We have some strong overlaps between the four companies in the CMS system [a combat management system] . . . It’s not symmetric, CMS is within Naval Group but on the Italian side CMS is within Leonardo,” he said. “There is another non-symmetric aspect — we are a shareholder of Naval Group, Leonardo is not a shareholder of Fincantieri.”
Mr Caine is, however, cautiously optimistic about the prospect for more defence co-operation in general, particularly as Europe attempts to forge closer defence ties through permanent structured co-operation.
Of Europe’s 28 member states, 25 have signed up to the scheme that involves 17 projects ranging from improving military mobility to developing a new infantry fighting vehicle.
“This political momentum coming from some countries, namely France and Germany, is new,” said Mr Caine. “Where will it end up? It’s too soon to say. If you look at the past you could be pessimistic, but if you look at the recent statements you could be optimistic.”
The Thales boss said 2018 would be a decisive moment for the company, not least as it puts it halfway down the road of its 10-year strategic plan. Mr Caine will present updated targets for 2021-22 to investors in June.
Thales will also absorb Gemalto this year after buying the struggling digital company in December for €4.8bn. The deal is expected to close in the second half of 2018.
Vaccination contre la dengue : le fiasco de Sanofi
Le laboratoire français est-il allé trop vite ? Après le décès de plusieurs enfants aux Philippines, l’industriel a dû interrompre brutalement sa campagne contre cette maladie tropicale.
Tous les ingrédients d’un succès étaient pourtant réunis. En 2008, Sanofi acquiert pour 332 millions d’euros une petite biotech anglo-américaine, Acambis, qui a mis au point un vaccin prometteur contre la dengue. Créé à partir du virus de la fièvre jaune génétiquement modifié pour exprimer certaines protéines de la dengue, il se distingue des vaccins testés jusque-là sans succès, y compris par Sanofi. Le laboratoire français imagine alors avoir mis la main sur le Graal : un vaccin permettant d’éviter plus de 3 millions de cas de dengue sévère et environ 10 000 décès par an sur 100 millions de cas symptomatiques. Qui ferait économiser plus de 7,2 milliards d’euros annuels à des pays en développement. Et qui pourrait rapporter plus de 1 milliard d’euros par an au laboratoire.
Le seul test possible se fait sur l’homme
Avec la technologie d’Acambis, Sanofi ambitionne de protéger simultanément
Smurfit Kappa rejects takeover approach from International Paper
Europe’s largest cardboard box maker calls the proposal ‘highly opportunistic’
Europe’s largest cardboard box maker Smurfit Kappa has rejected an unsolicited cash and share offer from International Paper of the US, describing the approach as “fundamentally opportunistic and conditional”.
The Dublin-based company did not disclose the value of the bid but said the proposal “fails entirely to reflect the group’s strong growth prospects and attractive industry outlook”. Smurfit Kappa’s enterprise value is about €9.8bn, according to FactSet data.
A statement from Smurfit Kappa said the proposal comprised “a combination of cash and a minority holding in the combined business”. International Paper is the world’s largest paper and pulp company.
Liam O’Mahony, chairman of Smurfit Kappa, said
The board of Smurfit Kappa has unanimously rejected this unsolicited and highly opportunistic proposal. It does not reflect the group’s true intrinsic business worth or its prospects.
He added that the company had a “proven management team which we believe will deliver significantly greater value for shareholders on a standalone basis”.
Smurfit Kappa was created by Jefferson Smurfit’s 2004 merger with Dutch rival Kappa Industries, the new company returned to the market in 2007 after a period owned by Madison Dearborn, the US private equity company.
The company, which is headed by Tony Smurfit, grandson of the founder, announced record earnings before interest, tax, depreciation and amortisation for 2017 of €1.24bn and said it would accelerate an investment programme to “improve its market position”.
International Paper did not comment.
ML
SMURFITT - Has rejected unsolicited approach from Intl Paper (2859.75)..+10-15%
DS SMITH - Positive read across from SKG being approached by Intl Paper(503)+5%
HELICAL - £150m disposal to Blackstone, 14% premium to Sept book value (342)+5%
MONDI - Positive read across from SKG being approached by Intl Paper (2007).+5%
COVESTRO - Confirmation 1COV to replace PSM in the DAX on March 16th (90.9).+3%
THALES - FY org growth 7.2% YoY with Q4 15% YoY with EBIT to growth 20% (92)+3%
INTERTEK - Pre tax profit 1% ahead with good margin growth and CF (5015)....+3%
T.ITALIA - Elliott said to build a stake. Concerned re Vivendi's role (0.8).+3%
BODYCOTE - H2 sales +3.7% v cons with org growth 5.1% & profit +7.8% (930)..+2%
EVONIK - Sales inline,EBITDA 2% below. Group margin 13.3% v 13.5% cons(31)+1-2%
AENA - In talks to acquire stake in Luton Airport; Expansion reporting (169)+1%
MINERS - Copper +0.6%, Iron ore fut +0.5% with BHP OZ +2.1%, RIO OZ +0.5%...+1%
ASHTEAD - PBT 5% beat, though co is guiding to inline at the full yr (2050).+1%
VONOVIA - Inline with FFO EUR 20.8m, just above top end. CFO leaving (37.8).u/c
CAIRN HOMES - Op profit hits top end of guide. Moves nos down slightly (1.8)u/c
W.HILL - CrownBet set to buy William Hill's Australian biz; AFR says (316)..u/c
IBSTOCK - Numbers look inline.Don't expect this to move the dial today (262)u/c
SPORTS DIRECT - Findel look at potential commercial supply arrangement (362)u/c
ROTORK - Revs 2%/ EBIT 6% ahead with H2 margins of 22.1% v 21.2% cons (286).u/c
BAWAG - BAML DOWNGRADE to Neutral and revise our PO to EUR47 from 49 (43.3).-1%
PROSIEBEN - Covestro to replace in DAX. BAML est 9.15m shrs to SELL (29.5)..-2%
MCCARTHY & STONE - H1 revs £240m v FY exp £730m. Op profit lower too (134)..-3%
NORWEGIAN AIR - Pricing -6% YoY in Feb with load factors falling 2% YoY(166)-3%
AGGREKO - PBT & EPS 2% below. Guide to flat PBT at CC, may drive cons (688).-5%
JUST EAT - Revs 8%/ EBITDA 3% ahead v cons. Guidance 23% below ests (792).-6-8%
CS
Aggreko +3-5% Sees FY18 pretax inline with FY17, revs ahead, EPS
light
Ashtead +1-2% Adj PBT 2% ahead, US strong, UK soft
Bodycote +1-2% FY revs 690.2mln cons 688.4mln, 2018 started inline
Bucher +1-2% FY17 EBIT 4.5% ahead, dividend better
Covestro +2% Entering the DAX effective March 19th
Dormakaba -3% H1 Turnover 1.5% ahead, Organic Sales light
Easyjet M/P Traffic stats - load factor 93% from 92%,
Eurofins +1-2% FY revs 2.97bln cons 2.98bln, increasing 2018 rev
objective
Evonik -2% Q4 EBITDA 474m, Cons 482m, miss in Services
Forbo M/P FY sales slightly ahead, dividend slightly light
Intertek M/P EBITA 1.7% ahead, EPS 1.9% ahead
IWG M/P Numbers inline with market expectations
Just Eat -10-15% Revs 4% ahead, investing in the biz, pft guidance light
Lindt +1-1.5% FY EBIT 595.4mln cons 597.7mln
Logitech -2% CMD - Confirms target for 2017/18, 2018/19 guidance
light
Meyer Burger +2% Awarded contracts with combined order vol of about
CHf14m
Miners +0.5-1% Copper +0.70%, Brent +0.15%, Iron Ore +0.95%, China
+0.90%
Mondi +1-2% CS UPGRADE to OUTPERFORM (Earnings prospects/valuation)
Oerlikon +1-2% FY17 Order intake 3.5% ahead, sales 3% ahead
Ontex Group -3% Pre-warned in Jan, guiding to low single Digit LFL
Rotork -7-10% 1% beat on sales and profit, margin outlook weak
Saipem -8-10% Revs light, 4Q adj loss EU105M est profit EU53.0M
Smurfit Kap +10% IP approach/turned down, no price detail given
Tele Italia +2% Elliott is said to build T Italia stake to take on
Vivendi
Thales +2% EBIT EU 1.54b est EU 1.51b, Targets higher 2018
earnings
Unicaja +1-2% CS ASSUME OUTPERFORM (potential merger)
Vonovia +1% EPRA NAV EUR 38.49/share (vs CSe 37.65), Re-confirmed
Divi
Will Hill +1-2% Disposal of Australian business to CrownBet, £168.5m
Macq Indications:
* Aggreko- FY Rev’s £1.73bn, expects FY18 PBT to be inline with last year. +1-2%
* Ashtead- Rev 4% beat, op profit inline, CAPEX at top end, keeps FY guidance; +1-2%
* IWG- FY Rev’s inline, Div increased. Unch
* Just Eat- Results in line with consensus but outlook slightly negative. -5%
* McCarthy & Stone- Slow H1, FY Profits to be H2 weighted. -1%
* Papers- Read-across from SKG bid approach. SMDS, MNDI, +2-3%
* Smurfit Kappa- Received approach from Intl Paper Company, believes it to undervalue company. +10%
* William Hill- Selling Australian Business to Crownbet for AUS$300m. Unch
* Aena- In talks to buy stake in Luton Airport (Expansion). Unch
* Evonik- EBITDA inline, Selling Methacrylates Unit. -2%
* Saipem- No's a miss at EBITDA level due to provision on Onshore E&C division, but outlook ok. -1-2%
* Thales- FY Rev’s & EBIT small ahead of est’s, Sets FY18 Guidance range €1.62-1.66bn.
* Vonovia- No’s top end of Guidance range, increasing Divi. Reiterates 2018 forecasts. CFO Stepping down. +1-2%