>>> Atlantia prepares to sweeten public offer for Abertis to counter ACS bid - r

Atlantia prepares to sweeten public offer for Abertis to counter ACS bid - report
23 NOV 2017
Abertis [BME:ABE] bidder Atlantia [BIT:ATL], is preparing to sweeten its public offer to see of a counterbid from Hochtief [FRA:HOT], the German unit of ACS [BME:ACS], Italian-language daily Il Sole 24 Ore reported. The unsourced report said that Atlantia laid out two options to investors during its roadshow last week. The report said that the first option would be to make the public offer all-cash, while the second option would retain the existing cash-and-share structure but raise the price.
The report said that the second option appears more likely, given that shares in the future merged Italian-Spanish entity are the most attractive part of the Atlantia offer. The report said that Atlantia would also run the risk of engaging in a bidding war, as an all-cash offer would mean that the competing bids would be judged purely on price.
Abertis has a market cap of EUR 18.27bn.

>>> Prisa bondholders request early conversion resulting in 10.4m new shares iss

Prisa bondholders request early conversion resulting in 10.4m new shares issued

Promotora de Informaciones [BME:PRS] (Prisa), late on 22 November, filed the following SIGNIFICANT EVENT stock exchange announcement:
The Company announces that the public deeds referred to in the Relevant Event 258672, issued on 17 November 2017, have been filed today with the Madrid Commercial Registry; i.e.:

(i) The public deed formalizing the resolutions on the reductions of reserves and share capital (face value reduction of each share), which were approved by PRISA’s extraordinary General Shareholders’ Meeting on 15 November 2017 under items 4.1, 4.2 and 4.3 of the agenda.

(ii) The public deed executing the share capital increase by the amount necessary to carry out the early conversion of those bonds issued by means of the agreement adopted by the General Shareholders Meeting on 1 April 2016. The conversion was requested by all the bondholders, in accordance with the bases and forms of conversion. The Company has issued 10,491,405 new shares, and redeemed the totality of the mentioned bonds pursuant to the request seeking the total conversion of the latter.

As a consequence of the amendments approved by virtue of the reductions and increase of the share capital mentioned above –as informed by means of the above mentioned Relevant Event 258672-, PRISA’s share capital amounts to EUR 83,497,721.22 represented by 88,827,363 ordinary shares of the same class and series, each with a par value of EUR 0.94 and consecutively numbered from 1 to 88,827,363.
LINK to stock exchange announcement (register number 258785)

Business of Fashion : Why LVMH May Become a Bigger Beauty Player

Why LVMH May Become a Bigger Beauty Player
As digital fuels brand fragmentation in beauty, LVMH has stayed largely on the sidelines, but the explosive success of Fenty Beauty could spell a change of heart.

GENEVA, Switzerland — The world of mass broadcast media has supported the rise of big brands that, almost by definition, had wide appeal. In contrast, today’s digital media reality favours niche brands that speak the language of specific consumer segments. Furthermore, with much digital media bought and sold through blind auctions, the raw procurement advantage enjoyed by big brands in traditional media is less clear-cut. Add e-commerce with its limitless shelf space, absence of listing fees and direct-to-consumer business models, and we have a recipe for market fragmentation.
In the beauty market, giants like L’Oréal and Estée Lauder have risen to the challenge, acquiring and then globalising niche brands. L’Oréal has bought and developed Nyx and likely has similar internationalisation plans for It Cosmetics and CeraVe. Meanwhile, Estée Lauder is doing the same with Becca and Too Faced. But all this requires capital investment.
French luxury conglomerate LVMH — which owns historic houses, such as Parfums Christian Dior, Parfums Givenchy and Guerlain, as well as brands like Benefit Cosmetics, Fresh and Make Up For Ever — has so far stayed out of the fray. However, the group’s success with the Fenty Beauty by Rihanna line, developed with Kendo, an incubator for beauty brands, may encourage LVMH to take the plunge with a full brand rollout model. If so, the conglomerate would have a significant advantage: Sephora.
Sephora, LVMH’s highly successful multi-brand cosmetics and fragrance play, is a powerful brand in its own right. What’s more, the business has enviable retail expertise and deep experience in assortment management and localisation. It also has a good track record when it comes to the commercial development of niche brands, including Estée Lauder’s Too Faced.
In short, in Sephora, LVMH has the perfect platform with which to harness the power of niche brands without the need to invest capital to acquire them. Sephora effectively gives LVMH a laboratory in which to incubate, test and tweak new brands in a range of locations before expanding into other channels.
And the benefits flow both ways. With the fragmentation of the market playing into Sephora's raison d'être, the pace of expansion at Sephora itself seems set to accelerate, pushing it even further ahead of its competitors.
For LVMH, there are also two indirect, but no less important, benefits. First, a more powerful beauty and cosmetics presence would bring greater stability to the group’s business portfolio. Secondly, it could open up an even more profitable entry point to the middle class whose ranks are growing across the globe.

In short, LVMH looks poised to become a more meaningful player in beauty.

>>> What to look at today - 23rd of November 2017

Dow -0.27% S&P -0.08% Nasdaq +0.07% Russell -0.14%
US Market closed lower in a low volume session ahead of a long week end. DE +4.4%, HPE -7.2%, GME +3.9%, GES-13%. AAPL +1.1% AMZN +1.5% ahead of holiday season. VZ +2%, T+1.5% on FCC net neutrality rules. USD lower after FED minutes. Energy +0.4% helped by WTI$57.98 +1.5%. Asian MArket are mixed. Tokyo closed. Kospi opened flat and has since moved lower: LG Electronics -1.4%, Samsung Electronics -1.1%, Hynix -2% (tracks declines in US chipmakers). In China, Automakers trade mixed: China may reduce EV subsidies by 20% in 2018 versus originally plan for 2019. China planning to set up a more than CNY100B fund for support to mixed-ownership reform of State Owned Enterprises.

Nikkei closed Hang Seng -0.36% CSI -2.64% Shanghai -1.97% Shenzen -2.33%

Eur$ 1.1830 CNH 6.5927 CNY 6.5963 JPY 111.25 GBP 1.3319 CHF 0.9820 RUB 58.5016 WTI$ 57.91 -0.11%

S&P -0.04% EuroStoxx -0.11% FTSE -0.12% DAX -0.33% SMI -0.11%

Macro :
- China to Clean up Existing Online Micro Lenders: Intl Fin News
- EU’s Moscovici Calls for Credible Tax Haven List: Figaro
- Saudi to Buy ~$7b Precision Munitions From U.S. Firms: Reuters
- Italy Can’t Live With Such High Debt: Moscovici to La Stampa

Keep an eye on :
- AKER NO : Aker Third Quarter Net Asset Value Per Share NOK467
- AZA IM : Alitalia Says June-Oct Net Loss EU31.3m, EU845m cash-flow
- ATC NA : Altice Faces Shareholder Complaint Over ‘Misleading’ Debt Level
- ATC NA : Altice seeks to sell Dominican Republic unit to cut debt - FT
- BAYN GY : Brazil Antitrust to Extend Deadline for Monsanto-Bayer Review
- BNP FP : BNP Maintains Its Key Capital Goal as G-SIB Buffer Reduced
- BNR GY : Bucher, Brenntag Investigated by Swiss Antitrust Regulator
- BUCN SW : Bucher, Brenntag Investigated by Swiss Antitrust Regulator
- CAI AV : CA Immo Nine Month FFO I EU84.8 Mln
- DBK GY : Deutsche Bank Asset Mgmt Head Can Stay on Board After IPO: HBT
- EDP PL : EDP to Receive EU584m From Securitization of Tariff Deficit
- ENI IM : ENI: Prosecutor Orders Seizure of Italy Oil Measurement Devices
- ENGI FP : Engie Wins 688MW of Renewable Energy Projects in Mexico
- ENGI FP : Engie Is Said to Sell Loy Yang Coal Plant in Australia to Alinta
- FCA IM : Fiat Chrysler to Recall About 7,000 SUVs to Replace Air Bags
- GNFT FP : Genfit Says Safety Board Ruled That NASH Drug Test Can Proceed
- NN NA : Dutch Kifid Ruling on NN Unit-Linked Policy Cost Is Final: FD
- OPERA NO : Opera Software Third Quarter Revenue Misses Lowest Estimate
- QCM US : Broadcom Is Said to Consider Higher Bid for Qualcomm: Reuters
- RED SM : Red Electrica in Talks W/ Eutelsat Over Hispasat: Expansion
- RCO FP : Remy Cointreau 1H Current Op. Profit EU134M vs Est. EU136M
- RNO FP : Nexter Beats Renault Trucks to French Army Contract: Tribune
- RBREW DC : Royal Unibrew Third Quarter Net Revenue Meets Estimates
- SD US : Icahn Reports SandRidge Stake, to Vote Against Bonanza Deal
- SHP LN : Shire Sues Teva to Block Copies of ADHD Drug Mydayis
- TEVA IT : Teva to Fire Up to 25% of Israeli Workforce: Calcalist
- VIRP FP : Virbac Postpones Option to Buy Chile’s Centrovet for Three Years

>>> Europe : Brokers Upgrades & Downgrades - 23rd of November 20

>>> Up
* Credit Suisse Upgraded to Neutral at Macquarie
* Drillisch Upgraded to Buy at Goldman; PT 75 Euros
* Endesa Upgraded to Outperform at MainFirst; PT 21 Euros
* Munich Re Upgraded to Buy at SocGen
* Nordax Upgraded to Buy at SEB Equities; PT 52 Kronor
* Resurs Holding Upgraded to Buy at SEB Equities; PT 63 Kronor
* Shell Upgraded to Reduce at AlphaValue
* Swiss Re Upgraded to Hold at SocGen; PT 97 Francs
* Software AG Upgraded to Buy at Kepler Cheuvreux; PT 52 Euros

>>> Down
* Borussia Dortmund Cut to Neutral at Oddo BHF; PT 6.50 Euros
* EQS Group Cut to Hold at Quirin Bank AG; Price Target 60 Euros
* GEA Group Downgraded to Sell at Nord/LB; Price Target 35 Euros
* Jupiter Downgraded to Hold at HSBC; PT 6.10 Pounds
* Metro Downgraded to Sector Perform at RBC; PT C$44
* Shell Downgraded to Hold at HSBC
* SocGen Downgraded to Underperform at Macquarie
* Solocal Downgraded to Reduce at Kepler Cheuvreux; PT 80 Cents
* United Internet Downgraded to Neutral at Goldman; PT 62 Euros

>>> Initiation
* Altice Initiated at ABN Amro Bank With Buy; PT 16 Euros
* Rubis Initiated at William O'Neil & Co Incorporated With Buy

>>> Call

(BFW) Broadcom CEO Is Said to Seek Breaking Up Qualcomm-NXP Deal: NYP


Broadcom exec looks to kill Qualcomm purchase of NXP

As he angles to pull off the biggest tech merger of all time, Broadcom Chief Executive Hock Tan is meanwhile looking to scuttle Qualcomm’s $47 billion bid for NXP Semiconductors, The Post has learned.

The boss of the chip-making giant told shareholders of rival Qualcomm in recent days that Broadcom will sweeten its $130 billion buyout offer for Qualcomm if the latter abandons its pursuit of NXP, two sources close to the situation said.

Broadcom’s Tan is aware he will likely need to raise the price of his giant offer, worth $70 a share, to be successful, sources said.

But the Qualcomm board has refused to engage with Broadcom, and Tan is taking his message directly to leading Qualcomm shareholders in private meetings, according to insiders.

“Tan is messaging hard that he expects Qualcomm to be reasonable” when raising its NXP bid, one of the sources who has direct knowledge of the situation said.

Qualcomm’s $110-a-share offer for NXP expires Dec. 15. As of Nov. 17, only 2.4 percent of NXP shares had been tendered, and sources say Qualcomm likewise will need to raise its bid to complete any deal with NXP.

“Broadcom is happy with some parts of NXP, but that’s it,” a second source said. “They would prefer the NXP deal did not happen.”

Reuters reported Wednesday that Broadcom is considering raising its bid for Qualcomm by offering more stock, causing Qualcomm shares to rise more than 2 percent, to $68.13, in Wednesday trading.

Qualcomm shareholders are signaling they want at least $80 a share, sources said.

Some speculate Broadcom will offer $77 a share for Qualcomm without NXP and perhaps a few dollars less if Qualcomm pays a big price for NXP, the source said.

That puts Qualcomm CEO Steven Mollenkopf and his board in a tricky situation.

Qualcomm, which claims to have powered the smartphone revolution, does not want to sell to Broadcom, sources said.

“It is the board’s unanimous belief that Broadcom’s proposal significantly undervalues Qualcomm relative to the company’s leadership position in mobile technology and our future growth prospects,” Qualcomm Chairman Paul Jacobs said Nov. 13.

However, “if the Qualcomm board decides ‘we are going to lose [to Broadcom] no matter what,’ then it might be better not to raise their NXP offer” by much, or at all, so Qualcomm can fetch more in a sale, a source said.

Irvine, Calif.-based Broadcom is preparing to launch a hostile tender for San Diego, Calif.-based Qualcomm, along with a proxy battle to gain control of Qualcomm’s board, by Dec. 8, sources said.

“If I were Qualcomm, I would bid $120 for NXP and try to make it work,” the source said.

Broadcom and Qualcomm did not return calls.

FT : Altice seeks to sell Dominican Republic unit to cut debt

Altice seeks to sell Dominican Republic unit to cut debt
French cable group struggling to reassure investors after share price halves

Altice, the French cable group, is planning to sell its telecoms network in the Dominican Republic as part of plans to dispose of non-core assets to reduce leverage and improve its financial position.

Altice has marked the Caribbean business for disposal and plans to sell it in an auction as part of its efforts to cut debt and reassure investors after seeing its share price halve this month, according to three people briefed on the plans.

The sale process of Altice Dominican Republic, a subsidiary of the Luxembourg-based holding company, is still in the early stages and plans could change, one of the people said. A spokesman for Altice declined to comment.

Earlier this month, Altice founder Patrick Drahi reinstated himself as chairman and the company’s chief executive resigned. Poor third-quarter results compounded investor concerns over Altice’s €51bn mountain of debt and highlighted continuing operational issues in its largest market of France.

Last week Altice announced that it plans to shun expensive dealmaking and de-leverage its balance sheet by disposing of non-core assets, including its mobile masts in Europe. At group level, Altice’s gross leverage after a spending spree that saw it acquire more than 30 companies in the past 15 years stands at 5.5 times earnings before income, taxes, depreciation and amortisation.

Altice said on Monday that it has initiated processes to begin the mobile masts disposal as early as the first half of 2018. It has also earmarked for disposal a small business in Switzerland focused on business customers that is valued at a couple of hundred million euros, according to two people familiar with the plans.

Altice bought the Dominican Republic unit in 2013 for €1.1bn from French telecoms group Orange. It delivers mobile and fixed services to more than 4.8m customers in the country. In 2016, Altice Dominican Republic recorded €717.5m in revenues and €185.2m in operating profit — roughly 3 per cent of the group’s overall revenues last year.

Altice outbid Cable & Wireless, now part of Liberty Global’s Lilac division, for the Dominican business. Lilac, which has been separated from Liberty Global in part to pursue acquisitions in Latin America and the Caribbean where it operates, is seen as an obvious buyer for Altice Dominican Republic, which generates huge amounts of roaming revenue from the tourist trade. A spokesman for Liberty Global declined to comment.

On Tuesday Altice announced another management shake-up, this time at subsidiary Portugal Telecom, which will see it replace its chief executive in Portugal for the second time in four months.

Claudia Goya, who joined Altice in July as chief executive of Portugal Telecom, will become chairman of the division, and Altice’s chief technology officer Alexandre Fonseca was promoted to chief executive. Paulo Neves, Portugal Telecom’s chairman and former chief executive is leaving the group.

Mr Drahi also sought to reassure Portugal Telecom’s employees about Altice’s commitment to Portugal, following claims by a rival that Altice’s plan to acquire Media Capital, the media group that owns national commercial broadcaster TVI, is dead.

Mário Vaz, the chief executive of Vodafone Portugal, said in a national newspaper on Tuesday that he believes that Altice’s acquisition of Media Capital has been “rejected” and said it would be “bad for the country”.

A person close to Altice said that the deal, which was announced in July, is still being reviewed by antitrust regulators and should be completed in the coming months.

In an email to Portugal Telecom’s employees, seen by the Financial Times, Mr Drahi wrote: “Portugal is today one of our biggest bets in the world. Our commitment to the country, to the economy and to innovation is to continue to build a strong, solid, modern and capable Altice/Portugal Telecom group.”

Mr Drahi has spent the past two weeks trying to reassure Altice’s employees and investors, telling them that the group is financially stable despite the decline in its share price. Its debt is guaranteed at 85 per cent with fixed rate and has no major maturities coming up for renewal until 2022.

>>> Asian Update

Asia Market Update: Markets quiet with holidays in Japan and US, HK holds about 30,000; PBOC sets CNY stronger

***Headlines/Economic Data***
- General Themes: Asian equity markets trade mixed amid thin trading conditions on US and Japan holidays
-Energy and Materials sectors add on to Wednesday’s gains
- Looking ahead: US markets closed for Thanksgiving holiday
Japan
-Tokyo Stock Exchange closed in observance of Labour Thanksgiving Day
- Nikkei 225 Futures -0.2%
-USD/JPY consolidates losses seen following FOMC minutes
-(JP) Japan metalworkers to push for a ¥3,000 ($26.90) minimum increase in monthly base pay for the 5th straight year – Nikkei
- (JP) Japan said to be ready to start debate on Constitution reform - financial press
- Looking Ahead: Japan prelim Nov Man PMI due to be released on Friday
Korea
-Kospi opened flat and has since moved lower: LG Electronics -1.4%, Samsung Electronics -1.1%, Hynix -2% (tracks declines in US chipmakers)
-Korean Won (KRW) opened at over 2 year highs versus US dollar; has since pared gains
- South Korea FX Official: Some offshore speculators are failing to notice government's willingness to stabilize financial markets
-South Korea Q3 Short Term External Debt: $119.8B v $117.3B prior; Debt/FX reserves ratio 31.1% v 30.8% prior
Geopolitics: North Korea Foreign Ministry: US designation deemed a severe provocation (responds to move by US to name the country a state sponsor of terrorism)
-South Korea and China to cooperate on stopping North Korea provocation – South Korea Press

China/Hong Kong
-Hang Seng opened +0.1%; Materials Index +3% (Chalco +7%)
-Shanghai Composite opened -0.2% and has extended losses led by appliance makers and wine cos; while banks outperform even with continued talk on tighter regulations; Small-cap Chinext index -1.5%
-Automakers trade mixed: China may reduce EV subsidies by 20% in 2018 versus originally plan for 2019 – Chinese Press
- Nexgo [300130.CN] cancels planned micro loan unit following suspension of approval by China government – US financial press
- (CN) China Banking Regulatory Commission (CBRC) official calling for stricter monetary management - Chinese press
-(CN) S&P: China's wealth product rules are game changing and could be a break to credit
-(CN) China planning to set up a more than CNY100B fund for support to mixed-ownership reform of State Owned Enterprises (SOE) - Chinese press
- (CN) PBOC Deputy Gov Fan Yife; Financing difficulties remain for some small technology companies - China press
-Shorter-term Offshore yuan money market rates ease after Wednesday’s rise: (HK) Offshore yuan Overnight HIBOR rate -3.22ppts to 2.75967%; 1-week HIBOR -47bps to 4.52286
- (CN) PBoC OMO: Injects CNY270B v CNY190B injected in 7,14 and 63-day reverse repos prior; Net injects CNY100B v CNY0B prior
-Offshore Yuan (CNH) +0.1%
-(CN) PBoC sets yuan reference rate at 6.6021 v 6.6290 prior (strongest level since Oct 18th)

Australia/New Zealand
-S&P ASX 200 opened -0.1%, closed flat; Utilities index -0.9% (follow-through selling) Consumer Discretionary Index -0.6%; Resources Index +0.8%
- TAP.AU Issues letter to shareholder regarding Risco – filing; -20%
- ASX 200 Financials Index -0.4%: Australia Treasurer Morrison summoned the chairs of the big banks to a series of urgent meetings; banks have said they will hold their opposition to in inquiry - Australian press
-NZX 50 closes flat
- Aussie and Kiwi slightly lower during session
-(NZ) NEW ZEALAND Q3 RETAIL SALES (EX-INFLATION) Q/Q: 0.2% V 0.1%E (smallest gain since Q2 2015); Y/Y: 5.4% V 5.1%E
- (AU) JPMorgan: In 2018, the Australia/US 10-year bond yield spread may turn negative
- (AU) Moody’s: Sees stable outlook for corporates in Australia in 2018; Sees moderate levels of debt maturities over the next 18 months
- (AU) Australia sells A$500M in Feb 2018 notes, avg yield 1.7244%, bid to cover 4.46x
- (AU) Australia sells A$394.5M in RMBS at auction (resumed as of today)
-(NZ) New Zealand sells NZ$150M in 3.5% 2033 bonds, avg yield 3.1338%, implied bid to cover 2.48x
-(NZ) New Zealand Former Labour Finance Minister will head group to consider changes that would improve the structure, fairness and balance of the tax system
- (NZ) New Zealand immigration minister wants to tighten work visa rules - NZ press
-Looking ahead: New Zealand Oct Trade Balance due for release on Friday.
- Australia to sell A$500M in 2.00% Dec 2021 bonds

Other Asia
Singapore
-Straits Times Index opened +0.3%; has since pared gains
- Q3 GDP revised higher: SINGAPORE Q3 FINAL GDP Q/Q: 8.8% V 7.8%E; Y/Y: 5.2% V 5.0%E
- Singapore sees 2018 GDP growth slowing to 1.5-3.5%, while 3.0-3.5% is expected for 2017
- Singapore Central Bank (MAS) official: 2017 monetary policy remains appropriate
- SINGAPORE OCT CPI M/M: -0.3% V -0.1%E; Y/Y: 0.4% V 0.5%E; Core CPI Y/Y: 1.5% v 1.5%e



North America
- US equities closed mostly lower: Dow -0.3%, SP500 -0.1%, Nasdaq +0.1%, Russell2000 -0.1%
-S&P500 Financial Sector -0.5%
- (US) FOMC MINUTES FROM NOV 1 MEETING: MANY FED POLICYMAKERS SAW NEAR-TERM RATE HIKE AS WARRANTED; SOME OPPOSED NEAR-TERM HIKE DUE TO WEAK INFLATION; A few Fed officials concerned hikes would undermine credibility; Several on Fed concerned about low inflation expectations
- US Treasury yields ended lower amid release of FOMC minutes
-(US) DOE CRUDE: -1.9M V -1.5ME
-M&A: 21st Century Fox (FOXA) said to remain engaged in prelim talks with suitors including Comcast and Disney; Broadcom (BRCM) reportedly considering higher offer for Qualcomm (QCOM) by offering more shares (press); Davita (DVA) said to consider sale of medical group unit which might be valued at ~$4B (press);
-Looking Ahead: NYSE is closed on Thursday in observance of Thanksgiving holiday. An early close (at 13:00 GMT) is seen for Friday;
-Canada Sept Retail Sales to be released later today

Europe
-(DE) Germany Oct Tax Rev +0.5% y/y, suggesting continued economic expansion – Ministry
-(EU) EU's Tusk: EU needs to discuss how to move forward with a banking union; Euro summit on Euro zone future will go ahead as planned
- (DK) Denmark PM Rasmussen’s Liberal Party suffered losses in local elections – financial press
- Looking ahead: Second readings of Q3 GDP expected out of Germany and the UK; European Nov prelim PMI data; ECB Account of Monetary Policy Meeting



***Levels as of 01:00ET***
- Nikkei closed, Hang Seng +0.1%; Shanghai Composite -1.1%; ASX200 +0.6%, Kospi +0.0%
- Equity Futures: S&P500 +0.0%; Nasdaq100 +0.0%, Dax -1.5%; FTSE100 +0.0%
- EUR 1.1838-1.1813; JPY 111.38-111.07; AUD 0.7623-0.7604;NZD 0.6884-0.6867
- Dec Gold -0.2% at $1,289/oz; Jan Crude Oil -0.2% at $57.88/brl; Dec Copper +0.0% at $3.14/lb