Deposed Saudi Prince Is Said to Be Confined to Palace
BEIRUT, Lebanon — The recently deposed crown prince of Saudi Arabia, Mohammed bin Nayef, has been barred from leaving the kingdom and confined to his palace in the coastal city of Jidda, according to four current and former American officials and Saudis close to the royal family.
The new restrictions on the man who until last week was next in line to the throne and ran the kingdom’s powerful internal security services sought to limit any potential opposition for the new crown prince, Mohammed bin Salman, 31, the officials said, speaking on the condition of anonymity so as not to jeopardize relationships with Saudi royals.
It was unclear how long the restrictions would remain in place. An adviser to the Saudi royal court referred queries to the Information Ministry, whose officials could not immediately be reached for comment on Wednesday. A senior official in the Saudi Foreign Ministry reached by telephone on Wednesday night described the account as “baseless and false.”
The Saudi monarch, King Salman, shook up the line of succession last week with a string of royal decrees that promoted his favorite son, Mohammed bin Salman, to crown prince and removed Mohammed bin Nayef, 57, from the line of succession.
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The elder prince was also replaced as interior minister by a 33-year-old nephew, marking the end of a career that had won him deep respect in Washington and other foreign capitals for his work dismantling Al Qaeda’s networks inside the kingdom after a string of deadly bombings a decade ago.
Supporters of Mohammed bin Salman, often referred to as M.B.S., have lauded his promotion, saying it empowered a young, ambitious prince who has laid out a positive vision for the kingdom’s future.
But his elevation effectively ended the political prospects of many older princes, some of whom consider him rash, power hungry and inexperienced. Prince Mohammed also serves as the kingdom’s defense minister, putting him in charge of Saudi Arabia’s costly military intervention against the Houthi rebels in neighboring Yemen.
Saudi state news media has gone out of its way to portray a smooth transition, repeatedly broadcasting a video showing Mohammed bin Salman deferentially kissing the hand of Mohammed bin Nayef, often referred to as M.B.N., who wishes him well.
But the restrictions placed on the elder prince suggest fear that some members of the sprawling royal family are upset with the change, and that public appearances by him could exacerbate such sentiments.
“It’s an indication that M.B.S. does not want any opposition,” a senior United States official said. “He doesn’t want any rear-guard action within the family. He wants a straight elevation without any dissent — not that M.B.N. was plotting anything anyway.”
The official said the United States government was in contact with the Saudi Interior Ministry, but that American officials had not had any formal contact with Mohammed bin Nayef and were monitoring the situation closely.
“M.B.N. has been such a great friend and partner of the U.S., we would not want to see him treated inelegantly or indecorously,” the senior American official said.
Since Mohammed bin Nayef’s removal from the line of succession, several veteran American counterterrorism and intelligence officials who had strong relationships with him have privately expressed outrage at his treatment. But they were wary of speaking publicly given the strong support for King Salman and his son from President Trump and other top aides, including Jared Kushner, the president’s son-in-law.
Mohammed bin Salman dined with Mr. Trump at the White House in March. That cleared the way for Mr. Trump’s visit to Saudi Arabia, where he declared the Saudis key allies in combating terrorism and extremism.
The restrictions have also been imposed on Mohammed bin Nayef’s daughters, according to a former American official who maintains ties to Saudi royals. A married daughter was told that her husband and their child could leave their home while she had to stay, the former official said.
One Saudi close to the royal family said the new restrictions had been imposed almost immediately after Mohammed bin Salman’s promotion.
After the announcement, Mohammed bin Nayef returned to his palace in Jidda to find that his trusted guards had been replaced by guards loyal to Mohammed bin Salman, according to the Saudi and a former American official. Since then, he has been prevented from leaving the palace.
Another former American official with close contacts with the royal family confirmed that Mohammed bin Nayef had been barred from leaving the kingdom, but said he had not heard that he had been restricted to his palace.
The promotion of Mohammed bin Salman last week followed his meteoric rise from near obscurity since his father came to the throne in early 2015 to the summit of Saudi power. Since then, he has been put in charge of the Defense Ministry, given oversight of the state oil monopoly and spearheaded the development of a plan called Saudi Vision 2030 that seeks to reduce the kingdom’s dependence on oil, diversify the economy and loosen some social restrictions.
His rise came at the expense of Mohammed bin Nayef, who has maintained a low profile while developing strong relationships with successive American administrations and intelligence officials.
During Mohammed bin Salman’s rise, American officials had struggled to build relationships with both princes while trying not to be used as leverage in any rivalry between them.
Mohammed bin Salman’s elevation has been accompanied by that of a number of other young princes. One of his brothers, Khalid bin Salman, was recently named the ambassador to Washington. He is believed to be in his late 20s.
Mohammed bin Nayef was replaced as interior minister by a nephew, Abdulaziz bin Saud bin Nayef, who has no clear experience in law enforcement or intelligence matters. In a unique arrangement in a country traditionally guided by deference to elders, he is the son of Saud bin Nayef, the governor of the Eastern Province, effectively making the young prince his father’s boss.
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Premier Foods Review Puts Options on the Table
Shares of Britain’s Premier Foods have languished since a rejected takeover offer from McCormick. Investors may get another shot as the food maker is conducting a strategic review
Some gambles don’t pay off. Just over a year ago, a midsize U.K. food company, Premier Foods , PFD 4.38% batted away a takeover proposal from McCormick & Co., the U.S. spice and herb group, promising that its own growth and a friendly tie-up with a Japanese noodle maker would bring better value.
Since then, Britain’s vote to leave the European Union and the collapse in the pound has forced Premier to abandon its revenue growth targets and cut costs to battle price inflation in ingredients for its products, which include Mr Kipling cakes and Oxo stock cubes.
But investors may get another shot at a sale because Premier has Credit Suisse CS +2.18% conducting a strategic review of ways to lift value for shareholders, according to people familiar with the company. Options could include the sale of one or more Premier brands, a merger with another food group, or an outright sale. A person familiar with the company said such reviews were done regularly.
It may be tough for any bid for Premier to reach the value offered by McCormick. The U.S. spice giant submitted several proposals last spring, the last of which valued Premier at £537 million (then $773 million), or 65 pence a share. The stock closed at 40 pence a share on Wednesday, roughly 40% below McCormick’s proposal, which was withdrawn in April 2016. Of course, for a U.S. bidder the company would be cheaper now: Last year’s proposal would now cost less than $695 million in dollar terms.
However, analysts’ earnings forecasts for Premier have also been cut from 4 pence a share to 2 pence for the year to March 2018, according to FactSet, and from 6 pence to 2 pence for 2019, meaning the company is probably now worth less. Premier is stuck trying to trim costs, pass on price inflation to customers in the highly competitive U.K. market, and make the best of a limited marketing budget.
Another obstacle is the 20% stake held by Nissin, the Japanese food group that invented instant noodles. Nissin and Premier revealed they were discussing a deal to cooperate on distribution, marketing and products late last March when the U.K. group first rejected McCormick’s approach. The next day it announced Nissin had bought the 17.3% stake held by private equity group Warburg Pincus. Nissin later added to that holding.
Other large shareholders Standard Life and Paulson & Co were frustrated by this outcome and the latter has since cut its stake significantly. Meanwhile, Hong Kong-based activist Oasis Management has built an 8% stake, and this year won a seat on Premier’s board.
Any transaction would need Nissin’s support. But with Premier’s stock price so low, the pressure on management to do something is building.
Gapping down
In reaction to disappointing earnings/guidance:
In reaction to disappointing earnings/guidance:
- PIR -12.6%, FUL -5%
M&A news:
- RAD -22.1% (Rite Aid and Walgreens (WBA) terminate merger, sign new agreement whereby Walgreens will acquire 2,186 stores, related distribution assets and inventory from Rite Aid for an all-cash purchase price of $5.175 bln; also reported earnings)
- FRED -19.6% (in response to termination of WBA/RAD deal)
- CRZO -1% (to acquire Delaware Basin properties from ExL Petroleum Management for $648 mln in cash; expects second quarter production to exceed the high-end of its previously-provided guidance range; also commenced public offering of 15.6 mln shares of its common stock and announces offering of $250 mln of Senior Notes Due 2025)
Other news:
- INPX -24.8% (prices $6 mln underwritten public offering at $1.05/unit)
- PTI -19.8% (preliminary data from the Multiple Ascending Dose (MAD) cohort of its Phase 1 trial designed to evaluate the safety and pharmacokinetics of PTI-428 in CF subjects)
- ALO -15.6% (announced a C$50 mln bought deal offering of 8 mln units at a price of C$6.25 per Unit)
- AKBA -6.8% (prices 4 mln shares of common stock at $14.50 per share)
- DOC -5.7% (prices 20 mln shares of common stock at $20.40 per share)
- GOV -4.6% (prices 25 mln shares of common stock at $18.50 per share)
- YY -4.2% (China may soon put some restrictions on live video, according to Techly)
- HTGM -3.9% (HTG Molecular Diagnostics launched its new HTG EdgeSeq PATH Assay for sale in the U.S. and Europe)
- BLCM -3.2% (files for $150 mln mixed securities shelf offering; files for 5,032,313 share common stock offering by the selling stockholders)
- WHLR -2.3% (closes sale of an outparcel located at Rivergate Shopping Center and Carolina Place; reports May AFFO of $0.15/share)
- MOMO -1.3% (China may soon put some restrictions on live video, according to Techly)
Analyst comments:
- EMKR -3% (downgraded to Neutral from Buy at B. Riley & Co)
Gapping up
In reaction to strong earnings/guidance:
In reaction to strong earnings/guidance:
- LNN +9.7%, PRGS +6.6%, (also acquires Kinvay a privately-held company based in Boston and leader in Backend as a Service (BaaS) technology, for $49 mln in cash), STZ +5.4%, WOR +3.7%, GBX +2.6%,IRET +2.5%, GMS +2.5%, MKC +2%, KLIC +1.7%, SHLM +0.7%, CAG +0.5%
M&A news:
- MBUU +7.6% (Malibu Boats to acquire Cobalt Boats for aggregate purchase price of $130 mln; expected to be accretive to Malibu's EPS; will host a conference call June 29 at 8:30 am ET)
- WBA +5.1% (Rite Aid (RAD) and Walgreens terminate merger, sign new agreement whereby Walgreens will acquire 2,186 stores, related distribution assets and inventory from Rite Aid for an all-cash purchase price of $5.175 bln; also reported earnings)
- SPLS +1.7% (Staples confirms definitive agreement to be acquired by Sycamore Partners for $10.25 per share in cash, or approximately $6.9 bln)
Select financial related names showing strength following CCAR results:
- HSBC +4.8%, C +3.5%, JPM +3%, RF +2.9%, KEY +2.8%, BAC +2.8%,ZION +2.8%, HBAN +2.8%, DB +2.7%, DFS +2.7%, PNC +2.5%, MS+2.4%, BK +2.4%, STI +2.2%, GS +2.1%, CMA +2%, USB +2%, FITB +2%,WFC +1.8%, STT +1.7%, AXP +1.5%, BBVA +1.4%, SAN +1.2%, CFG+1.2%, MTB +1.1%, ALLY +1%, .
Other news:
- SPEX +40.3% (continued momentum)
- TROV +29.2% (executes supplier agreement with NerPharMa in Milan, Italy, to manufacture drug product for PCM-075)
- NXTD +11.4% (continued strength; also Nxt-ID's Fit Pay is now providing payment capabilities for Token, a biometric identity ring that streamlines authentication process), GEMP +10% (announces top-line data on the LDL-C primary endpoint from the completed open label Phase 2b COBALT-1 trial; Gemcabene achieves primary endpoint for LDL cholesterol in phase 2b HoFH trial)
- WATT +7.1% (Dialog Semiconductor invests additional $15 million in Energous Corporation)
- OMER +6.4% (Omeros states it is 'aware of a report posted on-line' by Art Doyle; defends itself against allegations)
- SRPT +4% (appoints Douglas S. Ingram as president and CEO)
- VRX +3.6% (Salix announced FDA accepted the New Drug Application for NER1006 (PLENVU); expects FDA decision in first-quarter 2018)
- NTNX +2.6% (extending this afternoon's move higher; confirms .NEXT Conference updates)
- LULU +2.2% (Director/co-Chair Glenn Murphy disclosed purchase of 100K shares worth more than $5.5 mln)
Analyst comments:
- GRPN +3.8% (upgraded to Buy from Neutral at B. Riley & Co)
Gapping up
In reaction to strong earnings/guidance:
In reaction to strong earnings/guidance:
- LNN +9.7%, PRGS +6.6%, (also acquires Kinvay a privately-held company based in Boston and leader in Backend as a Service (BaaS) technology, for $49 mln in cash), STZ +5.4%, WOR +3.7%, GBX +2.6%,IRET +2.5%, GMS +2.5%, MKC +2%, KLIC +1.7%, SHLM +0.7%, CAG +0.5%
M&A news:
- MBUU +7.6% (Malibu Boats to acquire Cobalt Boats for aggregate purchase price of $130 mln; expected to be accretive to Malibu's EPS; will host a conference call June 29 at 8:30 am ET)
- WBA +5.1% (Rite Aid (RAD) and Walgreens terminate merger, sign new agreement whereby Walgreens will acquire 2,186 stores, related distribution assets and inventory from Rite Aid for an all-cash purchase price of $5.175 bln; also reported earnings)
- SPLS +1.7% (Staples confirms definitive agreement to be acquired by Sycamore Partners for $10.25 per share in cash, or approximately $6.9 bln)
Select financial related names showing strength following CCAR results:
- HSBC +4.8%, C +3.5%, JPM +3%, RF +2.9%, KEY +2.8%, BAC +2.8%,ZION +2.8%, HBAN +2.8%, DB +2.7%, DFS +2.7%, PNC +2.5%, MS+2.4%, BK +2.4%, STI +2.2%, GS +2.1%, CMA +2%, USB +2%, FITB +2%,WFC +1.8%, STT +1.7%, AXP +1.5%, BBVA +1.4%, SAN +1.2%, CFG+1.2%, MTB +1.1%, ALLY +1%, .
Walgreens Announces New Deal With Rite Aid
The $5.18 billion transaction will be paid for in cash.
PARIS — Walgreens Boots Alliance Inc. on Thursday announced a new merger agreement with Rite Aid for the purchase of 2,186 of its stores and related assets, including three distribution centers and related inventory. The $5.18 billion transaction will be paid for in cash.
The new agreement replaces the previous merger agreement that was first announced in October 2015 and amended in January 2017. Those agreements have been terminated, Walgreens said in a statement.
This new transaction is expected to close within six months.
Early premarket gappers
Gapping up:
- SPEX +34.6%, NXTD +12%, GEMP +10%, MBUU +7.6%, WATT +7.1%,PRGS +6.6%, GRPN +4.4%, WBA +4%, VRX +3.6%, SRPT +3.4%, IRET+2.5%, NTNX +1.9%, MKC +1.9%, SPLS +1.8%, KLIC +1.7%, WOR+1.6%, GBX +1.5%, STZ +1.3%, LULU +0.7%, GILD +0.7%, SHLM+0.7%, GMS +0.6%, CAG +0.5%
Gapping down:
- FRED -23.7%, RAD -18.6%, INPX -17.3%, MBRX -13.1%, PIR -9.9%,DOC -5.6%, YY -5.1%, BLCM -5%, FUL -5%, AKBA -4.6%, GOV -4.6%,AVEO -4%, CRZO -3.1%, WHLR -2.3%, MOMO -1.5%, ASML -1.3%, COF -0.7