Natixis discussing acquisition of AXA IM; JPMorgan and Goldman Sachs advising
AXA [EPA:CS], the French insurer, is understood to be discussing with French financial services group Natixis [EPA:KN], the future of its AXA Investment Management (AXA IM) division, French daily Les Echos reported.
Natixis is a part of the BPCE banking group.
The report cited several sources as saying that the two companies could combine their asset management units, with Natixis taking control and running the combined entity.
Discussions are believed to be at an advanced stage though no exclusivity agreement appears to have been signed yet, the report added.
Negotiations with Deutsche Bank Asset Management also took place but are not believed to have gone as far as the discussions with Natixis, the sources cliamed. The report noted that Deutsche Bank AM is headed by Nicoals Moreau, the former head of AXA in France.
According to the sources, Naxtis is being assisted by Goldman Sachs while Axa and AXA Im have mandated JPMorgan to conduct the talks.
AXA IM manages assets worth EUR 750bn, compared with EUR 835bn for Natixis.
Northrop Grumman Nears Deal to Buy Orbital ATK
Deal could be announced Monday, may be worth more than $7.5 billion
Northrop Grumman Corp. NOC 0.50% is nearing a deal to buy Orbital ATK Inc. OA 1.52% in a transaction that could be worth upward of $7.5 billion, as acquisition activity in the aerospace industry ramps up.
An all-cash tie-up between the two defense contractors could be announced Monday, according to people familiar with the matter.
Terms of the transaction couldn’t be learned, but with a typical takeover premium, it could value Orbital, which currently has a market value of $6.3 billion, at more than $7.5 billion. Northrop has a market capitalization of more than $45 billion.
The impending deal comes on the heels of another big aerospace union just announced earlier this month when United Technologies Corp. agreed to buy Rockwell Collins Inc. for about $23 billion.
A purchase of Orbital would add to Northrop Grumman’s existing focus on military aircraft and space systems, expanding the franchise to include more fast-growing missile-defense business.
Orbital provides space rocket motors and other parts for offensive and defensive missile systems, as well as satellites for military and commercial space operations. It was formed in 2015 from the merger of two missile and space specialists, Alliant Techsystems and Orbital Sciences. Orbital ATK employs about 13,000 and is targeting sales this year of $4.6 billion.
Its role in space and missile systems has led some analysts to view the company as a potential takeover target for big customers such as Boeing Co. , Lockheed Martin Corp. , or Northrop.
Northrop, which beat out Boeing and Lockheed to build the new B-21 Raider long-range bomber, is also competing to build a new fleet of intercontinental ballistic missiles for the U.S.
Northrop is vying with Boeing for the Ground-Based Strategic Deterrent nuclear missile program, and has joined with Orbital and fellow rocket maker Aerojet Rocketdyne Inc. during the current development phase of the $80 billion program.
Domestic and international defense budgets are starting to climb because of tensions in the Middle East, Eastern Europe and East Asia, with missile defense a priority for many nations.
Meanwhile, some defense contractors are seeking to become more vertically integrated, bringing production in house to give them better control of the supply chain and an ability to capture extra profits from repair work; this deal would fit into that pattern as well.
The planned purchase of Orbital marks a departure for Northrop, which has focused heavily on share buybacks, retiring around 25% of its stock over the past three years.
A deal involving the big prime defense contractors may be less likely to attract antitrust scrutiny than other proposed mergers because of their limited product overlap, though the Pentagon has in recent years become more involved in scrutinizing transactions.
SMCP Files For French Stock Market Listing
The IPO comes as owner Shandong Ruyi Group ramps up international expansion of SMCP's contemporary fashion brands.
PARIS – SMCP, the owner of French contemporary brands Sandro, Maje and Claudie Pierlot, has filed to list the group on the French stock market.
The plans for the initial public offering were initially revealed in June, when the company said it was considering the move, fulfilling part of its obligations in the process.
The initiative comes as the company has signaled plans to step up international expansion. Earlier this month, SMCP named a seasoned luxury executive, Isabelle Guichot, as chief executive officer of the fashion brand Maje.
The group’s owner, Shandong Ruyi Group, plans to remain majority shareholder. The Chinese conglomerate has a vast textiles business and acquired the French apparel company last October in a deal estimated at 1.3 billion euros, including debt. SMCP’s founders and management reinvested as minority stakeholders, along with former owner KKR.
“We are about to reach a new milestone in SMCP’s life, with the support of our controlling shareholder Shandong Ruyi, and at a time when our three brands’ desirability continues to increase across the world,” said Daniel Lalonde, president and chief executive officer of SMCP.
Shandong Ruyi chairman Yafu Qiu reiterated the Chinese conglomerate’s intentions to keep control of the French apparel company, with a stake of around 51 percent upon completion of the IPO.
Abertis suitor ACS in advanced talks with Macquarie over backing offer - reported rumour (translated)
18 SEP 2017
Abertis [BME:ABE] suitor, the Spanish construction group ACS [BME:ACS] is in advanced negotiations with Macquarie to lead a EUR 17bn counter offer for the Spanish motorways group, El Confidencial reported, citing sources close to the process.
ACS' new CEO Marcelino Fernandez Verdes, who has a good relationship with the Australian fund, is heading the talks, according to the report.
Fernandez Verdes also has a proposal from Canadian fund Brookfield, the report said. The article cited other sources as saying that ACS has also sounded out funds from the Middle East.
The deal structure proposed by ACS involves setting up a special vehicle that would be associated with its German unit Hochtief [ETR: HOT ] and launching the counter offer.
Subsequently, ACS would propose the merger by absorption of Abertis to create a holding company whose 70% of EBITDA would come from the concession business - recurrent long-term revenues - and the remaining 30% from construction, El Confidencial said.
>>> Up
* Fortum Raised to Neutral at Goldman, PT EU15.90
>>> Down
* Bpost Cut to Hold at Jefferies, PT EU26.50
* Ricardo Cut to Sell at Berenberg
* Wessanen Cut to Hold at Berenberg
* Zooplus Cut to Reduce at Kepler Cheuvreux, PT EU127
>>> Initiation
* Kvaerner New Buy at Kepler Cheuvreux, PT NOK15
* Rezidor Re-initiated Hold at SEB Equities, PT SEK33
>>> Call
Asian equity markets opened higher (Japan closed) taking its cue from a strong US session Friday. Hong Kong Hang Seng tested levels not seen since Dec 2007. The PBOC injected CNY300B in OMO, the most since January. Both the Kospi and the won failed to react to North Korea activity and rhetoric. Trump spoke with S. Korea President Moon over the weekend and a US aircraft carrier is expected in South Korea in October. China released its August property price data, showing a modest slowdown, property names in China and Hong Kong took some strength on the news. Markets to remain focused on Fed meeting later this week and Bank of Japan. China economic growth may slow down in Q4, sees 2017 GDP at 6.8%.
Nikkei Closed Hang Seng +1.02% CSI +0.42% Shanghai +0.25% Shenzen +0.56%
Eur$ 1.1942 CNH 6.5482 CNY 6.5490 JPY 111.16 GBP 1.3584 RUB 57.6683 CHF 0.9603 WTI$ 50.51 +0.14%
S&P +0.27% EuroStoxx Dax SMI FTSE
Macro :
- Ireland Sees Considerable Difficulties for Digital Tax: Donohue
- EU to Study Brexit Impact on Financial Transaction Tax Proposal
- France Mulling Tax on Trucks, Transport Minister Tells JDD
- ECB’s Praet (Belgium): euro zone still needs substantial stimulus to get back to the near 2% inflation target; will also respond if inflation were to get too high - press interview
- Brexit May Make Clearing Relocation to EU Necessary:Thiele in HB
Keep an eye on :
- AB1 GY : Air Berlin Pilots Threatening Company With Sick Reports: Focus
- MT NA : Tata Steel, ArcelorMittal May Bid for Bhushan Steel Assets: BTVI
- T US : Reportedly considering divestiture of $8B of assets in Latin America - press - Several telecom firms are said to be interest in the assets, including Liberty Global PLC, Telefonica SA, and Millicom International Cellular SA
- ADJ GY : ADO Properties Buys EU262.5m in Berlin Assets
- BMW GY : BMW Warns of Hard Brexit Risks on Tariff Concerns: Sunday Times
- CAPIO SS : Buy Capio Shares, Valuation is Low, Dagens Industri Says
- DB1GY : Deutsche Boerse Is Said to Prepare CEO Compensation Changes: HB
- FCC SM : FCC of Spain Wins Waste Contract for City of Bilbao: Expansion
- GAS SM : Gas Natural Close to Sale of EU1B of Italian Assets: Sole
- IMG LN : Imagination Technologies bid from China attracts UK government involvement
- NESN VX : Henkell Allies With Ferrers to Control Freixenet: El Economista
- NDA SS : Nordea Cuts International Stocks Trading Fees, Borsen Reports
- NOVN VX : ThromboGenics to Regain Global Rights to Jetrea From Alcon
- OA US : Northrop Is Said to Buy Orbital ATK in Deal Worth >$7.5B: WSJ
- PSM GY : ProSieben Says Promise of Paying Dividend Holds: Euro am Sonntag
- RYA LN : Ryanair to Cancel 40-50 Daily Flights to Improve Punctuality
- SIE GY : Siemens Halted Supplies to Ukraine on Russia Pressure: Naftogaz
- SGRE SM : Siemens Gamesa Wins China Order for 300MW
- SNAP US : Snap Says It Blocked Al Jazeera Channel in Saudi Arabia: WSJ
- SREN VX : Swiss Re CEO Sees Consolidation Pressure in Reinsurance: HB
- TIT IM : Telecom Italia May Consider Splitting Itself in Two: Sole 24 Ore
- THR BB : ThromboGenics to Regain Global Rights to Jetrea From Alcon
- HO FP : Leonardo, Thales May Partner With Fincantieri, STX: Il Sole
- VIV FP : Spotify Is Said to Have Rejected Tencent Approach: TechCrunch
- VIV FP : Vivendi Is Said to Acknowledge Influence at Telecom Italia
- VIV FP : Italy’s Calenda Hints at State Intervention in Tim-Vivendi: Ansa
Slack raises USD 250m in funding round led by Softbank at USD 5.1bn valuation; IPO not expected until 2019
18 SEP 2017
Slack Technologies, the San Francisco, California-based enterprise messaging app, has raised USD 250m in a new funding round which valued the company at USD 5.1bn, including the new cash, the Financial Times reported.
The round was led by the Vision Fund of Japan-based SoftBank [TYO:9984] which, according to Slack CEO Stewart Butterfield had been keen to make a larger investment and is now expected to remain a backer of the business until after Slack eventually lists on the stock market.
The CEO said Slack is on track for an IPO in the future but this will not take place until 2019 at the earliest, he added. He explained that this is in part because Slack will fail to meet business targets during the year to come.
Slack announced last week that its annual recurring revenues had reached USD 200m, and Butterfield acknowledged that a decade ago such a company would already have gone public, the item reported.
Slack previously raised USD 360m in two funding rounds and has yet to spend that capital, Butterfield said.
Wanda Film excludes Legendary Pictures in Wanda Media deal; targets domestic assets - report (translated)
18 SEP 2017
Wanda Film [Wan Da DianYing; SHE: 002739], a Chinese cinema operator, will only seek to acquire the domestic assets of Wanda Media, a company engaged in film and TV investment, production and marketing, the Chinese-language China Securities Journal reported.
The item cited an unidentified source who said Legendary Pictures, Wanda Media's Hollywood-based movie-making asset, will not be included in the acquisition.
Wang Huiwu, board secretary at Wanda Film, said the proposed acquisition is aimed at reducing connected transactions and peer competition between his company and Wanda Media.
As reported, Wanda Film has signed a letter of intention with Beijing Wanda Investment, a privately held company controlled by Wang Jianlin, to buy Wanda Media. Wanda Film expects to complete the acquisition via a new share issue to the existing shareholders of Wanda Media.
Wanda Media currently has a registered capital of CNY 750m (USD 114.55m).