>>> Europe Pre-Market Indications

BofA-ML
ULTRA ELECTRONICS - Company says its in advanced talks to buy Sparton..........
CAPITA - Asset services business sale confirmed for an EV of £888m (726)....+5%
NESTLE - Dan Loeb's HF Third Point takes a $3.5bn stake in Nestle (83)....+1-2%
INTU - John Whittaker (owner of 27% of Intu) takes 4.6% stake in HMSO(275)+1-2%
ENQUEST - Kraken (70.5% interest) 1st oil achieved on 23rd June (29.9)....+1-2%
HAMMERSON - John Whittaker (owner of 27% of Intu) taking a 4.6% stake(597)+1-2%
CAIRN ENERGY - 29.5% field partner in the Kraken field with Enquest (172).+1-2%
ITALIAN BANKS - Veneto banks liquidations is the best case scenario.......+1-2%
EON - FAZ reporting that Germany will sign nuclear waste deal today (8.9).+0.5%
RWE - FAZ reports that Germany will sign a nuclear waste deal today (19)..+0.5%
MINERS - Copper -0.3%, Iron Ore fut +0.3% with BHP OZ +0.18%, RIO OZ +0.92%.u/c
GETINGE - 2 Brazilian units under investigation for cartel activities (171).-1%

CS calls


Burkhardt M/P Acquires Canadian CSM Compressor, small bolt-on deal

Cairn Energy +1% Enquest (operator) announced start-up of the Kraken field

Capita +1% Sale of Capita Asset Services to Link Group for £888m

Hammerson +1% John Whittaker has built a 4.6% stake in Hammerson

Intesa +1-2% Intesa take Veneto good assets + €5.2bn state aid

Intu +1% ST suggests Intu may merge with HMSO post stake build

Lufthansa M/P CEO Rules Out Air Berlin Takeover for Now

Miners +0.5% Iron ore +30 bps, Copper -35 bps. Sector steady in Oz

Nestle +0.5% Third Point builds stake, suggests selling L'Oreal stake

Reckitts +0.5% CS raising EPS estimates and up'd TP to 8,650p

Rio Tinto S/P Glencore increases offer for Rio Coal assets

Roche M/P Genentech's Emicizumab showed positive results in Phase 111

Satorious M/P CEO says co can raise >€1bn for acquisitions

Ultra Elec. +1% CO Confirms it is in talks to buy Sparton Corporation

Investec Euro & UK Pre Mkt Indications

* ALTICE-talks on bid for PRISA stake in Media Cap(val €450m)-Expresso......U/C
* DIALOG SEMI-CEO see return to growth in 2017 (FuW)........................+2%
* EUROFINS-another small aqn today. CEO sees aqns of all sizes(Investir)....U/C
* GETINGE-Brazil units under investigation for alleged cartel activities....-2%
* LUFTHANSA-CEO rules out Air Berlin takeover for now(BamS).................+1%
* NESTLE-activist takes $3.5bn stake,urges sale of L’OREAL(U/C) stake.......+1%
* ROCKET INTERNET-Delivery Hero books covered in top half range.............+1%
* SANOFI-likely spec L’OREAL will sell stake to fund buyback from NESN VX...U/C
* SLM SOLUTIONS-gets multi-machine China order..............................+2%
Other
* INTESA-Govt approves Veneto bailout, Intesa take on assets, CET1 neutral deal.

UK

* AMEC FW-Completes CFB disposal for $170m.................................unch
* BILLITON-South Frank mine to cost about A$3-4bn.Aprroval H1 '18..........+½%
* CAIRN/ENQUEST-Kraken first oil on schedule & under budget.................+2%
* CAPITA-Confirms sale od CAS to Link Grp for £888m.........................+1%
* ENTERTAINMENT ONE-CFO buy 40k shares(1st purchase)........................+1%
* GAMMA COMMS-COO stepping down (leaving end Sept).........................unch
* GLENCORE-RIO's board Will View Glencore’s Coal Offer Favourably(RBC).....+½%
* HAMMERSON-Peel Hdgs(built 4.6% stake) could merge with HMSO(STimes).......+1%
* ITV-Bidding Frenzy set to begin(wall steet wires)Shs +3.3% Friday.........+2%
* ULTRA ELEC-Confirms in talks to Buy SPARTON(SPA US).....................+2-3%


MF
*NESTLE-Said to targeted by activist Dan Loeb's Third Point........+1%
*L'OREAL-Nestle stake sale back on the radar(23.2%),see above......-0.5%
*ROCHE-Genentech's Emicizumab shows positive results in phase 3....+1%
*LUFTHANSA-CEO rules out Air Berlin t/o for now,not a surprise.....+0.5%
*TECHNIPFMC-Petrobras negotiating amendment to contract - Rtrs.....-0.5%
*GETINGE-Says Brazilian Units under investigation by authorities...-1%
*EDF-Hinkly audit show up to €3bln of extra costs says Le Monde....-1% *
EUROFINS-Seeking acquistions of all sizes,buys Genoma Lab(small)..+0.5%
*DIALOG-CEO sees grth returning in '17,reduce Apple dependency.....+0.5%



• AMEC FW-Completes CFB disposal for $170m.................................unch
• BILLITON-South Frank mine to cost about A$3-4bn.Aprroval H1 '18..........+1/2%
• CAIRN/ENQUEST-Kraken first oil on schedule & under budget.................+2%
• CAPITA-Confirms sale od CAS to Link Grp for £888m.........................+1%
• ENTERTAINMENT ONE-CFO buy 40k shares(1st purchase)........................+1%
• GAMMA COMMS-COO stepping down (leaving end Sept).........................unch
• GLENCORE-RIO's board Will View Glencore’s Coal Offer Favourably(RBC).....+1/2%
• HAMMERSON-Peel Hdgs(built 4.6% stake) could merge with HMSO(STimes).......+1%
• ITV-Bidding Frenzy set to begin(wall steet wires)Shs +3.3% Friday.........+2%
• ULTRA ELEC-Confirms in talks to Buy SPARTON(SPA US).....................+2-3%

FT : Hornby criticises Phoenix takeover offer

Hornby criticises Phoenix takeover offer

The board of Hornby, the Aim-listed toymaker, has criticised a takeover offer from its majority shareholder Phoenix Asset Management, saying its bid to buy the remainder of Hornby’s shares undervalues the company.

Phoenix was required to make an offer to buy the rest of Hornby after upping its stake above 50 per cent last week, and confirmed on Friday it had made an offer of 32.375p per share.

The company said the offer “signfificantly undervalues Hornby and its future prospects”. It said it would write to shareholders with a formal response to the offer in due course, and encouraged them to take no action in the interim.

Hornby has been attempting to turn its business around after a series of profit warnings in recent years. It was forced to raise fresh capital to avoid breaching the terms of its bank loans in 2015, and returned to the markets for a further capital injection last year.

Shares in the company have risen 15 per cent since the start of the year, but Phoenix’s offer price still marks a 61 per cent discount to Hornby’s share price before its most severe profit warning last February.

>>> What to look at today - 26th of June 2017

Asian stocks advanced as technology shares continued a recovery and oil climbed for a third straight session after entering a bear market last week. Technology shares had the biggest advance in the MSCI Asia Pacific Index. The yen was little changed against the dollar. The pound climbed for a fourth day amid Brexit negotiations by U.K. Prime Minster Theresa May, whose leadership remains under threat. An absence of catalysts over the weekend left investors awaiting clues from central bankers on policy paths for some of the world’s biggest economies. Federal Reserve Bank of San Francisco President John Williams made the caseMonday for further gradual interest rate increases, saying he expects inflation to rise to the central bank’s 2 percent target next year as unemployment edges lower. Later on, European Central Bank President Mario Draghi will make speak in Portugal before Fed chair Janet Yellen makes an appearance in London on Tuesday.

Nikkei +0.09% Hang Seng +0.42% CSI +1.10% Shanghai +0.70%

Eur$ 1.1197 CNH 6.8481 CNY 6.8408 JPY 111.31 GBP 1.2745 CHF 0.9699 RUB 59.32 WTI$ 43.49 (+1.12%)

S&P +0.07% EuroStoxx +0.23% Dax +0.18% FTSE +0.07% SMI +0.40%

Macro :
- France to Unveil Environment Roadmap by End-July, Macron Says
- Hedge Funds Go All-In on VIX Shorts Again: CFTC
- EU Commission in Talks With Italy on Aid for Failed Veneto Banks
- French Government Spokesman Castaner Sees No Tax Hike: RTL Radio
- Draghi in the Limelight at ECB’s Sintra Forum: Macro Squawk Wrap
- Tradeweb: Offshore Bond Trading Platform to Link to Bond Connect

Keep an eye on :
- AB1 GY : Lufthansa CEO Rules Out Air Berlin Takeover for Now: BamS
- AKZA NA : Akzo Nobel specialty chemicals unit to be spun-off or sold by April 2018 - telegraaf.nl
- ALV GY : Allianz Sells Oldenburgisch LB Stake to Bremer Kreditbank
- ATC NA : Altice, Prisa Lawyers Had Meetings on Media Capital: Expresso
- ARM LN : ARM Holdings Invests GBP17m in Blu Wirless: Sunday Telegraph
- BOTHE BB : Bone Therapeutics Says to be Awarded Allogeneic Cell Patent
- CLLN LN : mentionned again in FT as potential target for PE.
- COL SM : Spain’s Colonial to Invest Up to EU400m Per Year, CEO Tells ABC
- CRBN NA : Corbion Holder Converts Preference Shares Into Ordinary Shares
- CTF SM : Investment Funds Said to Show Interest in Cortefiel:Confidencial
- DAI GY : Daimler to Make Only Electric Smart Cars From 2020/21: Manager
- DAI GY : Diesel Engines Emit Less CO2, Daimler CEO Tells Deutschlandfunk
- DLG GY : Dialog Semiconductor CEO Sees Return to Growth in 2017: FuW
- DIA SM : DiaSorin Sees Net Result Rising Around 12% a Year Through 2019
- EDF FP : EDF Hinkley Audit Shows Up To 3 Billion Euros Extra Cost: Monde
- ERF FP : Eurofins Seeking Acquisitions of All Sizes, CEO Tells Investir
- FCA IM : Fiat Chrysler Said to Have Halted Output of Pacifica Hybrid: WSJ
- FNC IM : Fincantieri Gets Export Finance Approval for Qatar Deal: Sole
- HNR1 GY : Hannover Rueck CFO Sees ECB Rates Staying Low for Years: Euro
- HIS SM : Hispania Aims to Sell Office Portfolio by Year End: Economista
- ISP IM : Intesa Confirms Buying Veneto Bank Assets for One Euro
- LHA GY : Lufthansa CEO Rules Out Air Berlin Takeover for Now: BamS
- MS US : Morgan Stanley May Add 200 Jobs in Frankfurt Over Brexit: WamS
- NESN VX : Nestle Targeted by Activist Third Point With $3.5 Billion Stake
- UG FP : French Car Industry to Sell Certification Co. Utac: Les Echos
- RNO FP : French Car Industry to Sell Certification Co. Utac: Les Echos
- RIO LN : Rio Tinto Board Will View Glencore’s Coal Offer Favourably: RBC
- ROG VX : Genentech’s Emicizumab Showed Positive Results in Phase III
- SBRY LN : Sainsbury Promises Nisa Independence on Takeover: Telegraph
- UBSG VX : UBS CEO Says Bank Regulation Lacks Political Discussion: Blick
- VED LN : Vedanta Seeks to Quadruple Zambia Copper Output Over Three Years
- WFM US : Wal-Mart Said Not Considering a Bid for Whole Foods: Reuters

>>> Europe : Brokers Upgrades & Downgrades - 26th of June 2017

>>> Up
*Aker Solutions Raised to Buy at Pareto Securities, PT NOK45
*Berendsen Raised to Equal-weight at Barclays
*Buwog Raised to Buy at Deutsche Bank
*PGS Raised to Accumulate at Fearnley, PT NOK16
*Suez Raised to Buy at Jefferies, PT EU19
*UBS Raised to Overweight at JPMorgan, PT CHF19
*Wacker Neuson Raised to Buy at Bankhaus Lampe

>>> Down
*Aena Cut to Equal-weight at Barclays
*Akzo Nobel Cut to Inline at Evercore ISI, PT EU80
*Elisa Cut to Reduce at Kepler Cheuvreux, PT EU33
*Givaudan Cut to Inline at Evercore ISI, PT CHF1,990
*Lindt & Spruengli Cut to Neutral at MainFirst
*Mediclinic Cut to Hold at Investec, PT 775p
*Orange Belgium Cut to Hold at Kepler Cheuvreux, PT EU22
*Provident Cut to Sector Perform at RBC, PT 2,650p
*Terna Cut to Reduce at HSBC
*Zalando Cut to Underperform at RBC, PT EU38
*Zumtobel Cut to Reduce at Kepler Cheuvreux, PT EU15

>>> Initiation
*Escape Hunt New Buy at Peel Hunt, PT 165p
*Forterra New Buy at Jefferies, PT 370p
*LyondellBasell New Buy at HSBC, PT $101
*Zurich Airport New Equal-weight at Barclays

>>> Call

Reuters - Loeb's Third Point targets 'staid' Nestle for change

Loeb's Third Point targets 'staid' Nestle for change

Activist investor Daniel Loeb's Third Point LLC on Sunday unveiled a stake of more than 1 percent in Switzerland's Nestle SA (NESN.S) and urged the world's largest packaged foods maker to improve its margins, buy back stock and shed non-core businesses.

The 3.28 billion Swiss francs ($3.4 billion) stake is the largest ever taken by the hedge fund, which pressed for change in recent years at U.S. internet firm Yahoo and Japan's Sony Corp (6758.T).

Third Point disclosed the Nestle position in a letter to the hedge fund's investors, in which it argued the food company should sell its 23 percent stake in French cosmetics firm L'Oreal SA (OREP.PA). It said in the letter that it has already had productive conversations with Nestle management.

Nestle could not be immediately reached for comment.

Nestle is the biggest player in a packaged food industry struggling with a slowdown in emerging markets, falling prices in developed markets and consumers demanding fresher, healthier products.

Mark Schneider, the company's new chief executive, has been trying to reignite growth at the company since joining Nestle in January from German healthcare group Fresenius (FREG.DE).

In February, he scrapped Nestle's longstanding sales target as it reported disappointing annual results, echoing rivals by striking a cautious tone.

"We feel strongly that in order to succeed, Dr. Schneider will need to articulate a decisive and bold action plan that addresses the staid culture and tendency towards incrementalism that has typified the company's prior leadership and resulted in its long-term underperformance," Third Point wrote in the letter.

The hedge fund said that Nestle should set a formal margin target of 18 percent to 20 percent by 2020 in order to help improve productivity. It also recommended it more than double its debt load, as well as sell the L'Oreal stake, in order to generate the capital to buy back stock.

Third Point's roughly 40 million shares in Nestle would make it the company's eighth-largest shareholder, according to Thomson Reuters data. Third Point's stake was first reported by Bloomberg.

Jan Bennink, former CEO of baby food maker Royal Numico, is advising Third Point on its Nestle investment and has also invested personally alongside the fund, Third Point said.

Nestle said earlier this month that it might sell its $900 million-a-year U.S. confectionery business in its latest effort to improve the health profile of its sprawling portfolio.

Nestle's shares closed at 82.10 Swiss francs on Friday.

>>> Altice confirms talks with Prisa on possible offer for Media

Altice confirms talks with Prisa on possible offer for Media
26 JUN 2017
In response to a request by the Portuguese Securities Market Commission Comissão do Mercado de Valores Mobiliários, Altice NV ("Altice") [AMS: ATC] confirms that it has entered into exploratory discussions with Promotora de Informaciones, S.A ("Prisa") [BME: PRS] regarding a potential acquisition of Prisa's stake in Media Capital SGPS, SA ("Media Capital"), a Portuguese media group with leadership positions in TV broadcasting, audiovisual production, radio, digital, music and entertainment.

>>> Akzo Nobel specialty chemicals unit to be spun-off or sold by April 2018 (tr

Akzo Nobel specialty chemicals unit to be spun-off or sold by April 2018 - telegraaf.nl

Akzo Nobel's [AMS:AKZA], Specialty Chemicals unit will either be spun-off and floated or sold by April 2018, according to the present schedule, Thierry Vanlancker, director of the business unit, said in an interview with De Telegraaf.
No decision has been taken on what kind of separation of the main company will materialise, Vanlancker said. It is preferred the Specialty Chemicals unit remains as a whole, he remarked, adding there is significant buzz among interested parties.
No decision has yet been taken on whether a protective foundation (Dutch: Stichting) will be installed, that can assist with warding off hostile takeovers should the company be floated, Vanlancker said.
In terms of pricing, Vanlancker remarked multiples of 10x or 11x ebitda are common and at present, the unit's ebitda stood at EUR 953m in 2016, the item added.

>>> Takata shares to be delisted on 27 July; share trading suspended whole day t

Takata shares to be delisted on 27 July; share trading suspended whole day today
26 JUN 2017
The Tokyo Stock Exchange has decided to delist the shares of Japanese auto airbag maker Takata Corp [TYO: 7312] on 27 July, following the company's filing of an application to the Tokyo District Court for bankruptcy court protection earlier today (26 June), the exchange said in a statement.
The Japanese auto airbag maker earlier today, along with two subsidiaries in Japan and 12 overseas, filed for court-protected rehabilitation in Japan, and the court has issued an order of protection on Takata's assets from its creditors.
The stock exchange also placed the Takata shares in trading suspension today (26 June) for the entire day, according to the statement.
From 26 June until 26 July, the shares will be in the designated period for delisting, the statement said.

FT : Is it the end of the road for the motor car marque?

Is it the end of the road for the motor car marque?
Mercedes and BMW battle to keep significance of brand alive as ride-hailing grows

Sitting near four futuristic concept cars at BMW’s Munich headquarters, chief executive Harald Krüger says his company has no problem differentiating its products from the likes of arch-rival Mercedes.

How BMW feels and handles is based on drivetrain and software expertise that other manufacturers cannot deliver, he says. BMW’s Mini, for instance, “has an iconic driving feel,” while its Rolls-Royce cars are “like a magic carpet”.

But, in the next decade, product differentiation may become increasingly irrelevant as growing numbers of passengers using car-booking apps, such as Uber, Didi and Lyft, no longer care as much about the make or model of the vehicle.

Like the airlines, the carrier company may become more important to the consumer than the vehicle’s brand, with passengers often unaware whether they are flying in a Boeing or an Airbus.

Adapting to this change in consumer demand is one of the key challenges for the world’s leading carmakers. As vehicle ownership is expected to decline, the business is evolving into a race against the software groups to build new ecosystems that will be autonomous, connected, electric and shared.

“When we talk about mobility services, I don’t look to Munich or to BMW,” says Wilko Stark, head of strategy at Daimler, which owns Mercedes.

“We look to China — Didi, for example — we look to Uber and Lyft. We look at what Google is doing with [its self-driving car project] Waymo, and also Apple is trying a lot of things. These are the new competitors.”

Jürgen Bilo, head of strategy at German supplier Continental, adds: “Business models are going to change completely [as] the Googles and Apples are coming in.”

To complicate the picture, the competition between traditional carmakers is likely to intensify. In Detroit, Ford and General Motors are competing on autonomous cars, while Nissan and Toyota are fighting it out over electric technology in Japan.

In Germany, the rivalry between BMW and Mercedes, the world’s two biggest selling premium carmakers, where make and marque are integral to success, offers a good example on how different groups are responding to changes in the industry.

For both BMW and Mercedes, which have been reliant on performance, styling and brand to deliver profit margins, the focus has shifted to autonomous driving, shared vehicles and electric cars.

On autonomous or self-driving, the two companies are taking different approaches.

BMW is partnering with technology groups, Israel-based Mobileye and California-based Intel, to release an autonomous car by 2021 in a non-exclusive partnership that it hopes will form the blueprint for these vehicles in the future.

The idea is to create an operating system for other self-driving cars to be a part of — potentially creating a new line of revenue for BMW.

Ian Robertson, BMW’s sales director, recently told a car conference in London that there had been other expressions of interest in joining the group.

He declined to say who, but within weeks Delphi, which supplies technology for the car industry, joined the team and explained that anyone trying to do “everything on their own or in a very closed system are going to really struggle”.


Mercedes’ parent Daimler is looking at other options. It can deploy its self-driving technology for its cars as well as lorries, buses and vans — important areas where BMW does not have a presence. “We are using the synergies within our group,” says Daimler’s Mr Stark.
On shared vehicles and the potential threat to business of falling car ownership, the groups look more closely aligned, at least at first glance. Both have launched inner-city car-sharing schemes, with BMW’s DriveNow featuring Mini, electric i3 cars and smaller BMW 1-series, while Mercedes’ car2go programme has recently expanded from low-end smart cars to more luxury vehicles.
However, differences are emerging. Daimler has taken a lead in ride-hailing, by purchasing taxi-booking apps Hailo and MyTaxi and then incorporating them into its “moovel” app, a one-stop shop for all of its transport services.
In partnership with supplier Bosch, Daimler plans to build “robo-taxis” to be part of its shared fleet in the next decade.

In contrast, Mr Krüger says BMW’s self-driving cars will still be driver-focused, handing control back whenever desired. “We will not deliver robo-taxis,” he says.

BMW is trialling an “Airbnb for cars” scheme to let drivers in the US rent out their own cars to others using an app.

Mercedes has a similar scheme in Germany, called Croove, but it is open to all drivers regardless of car brand.

Julie Boote, an analyst at Pelham Smithers, says these moves are necessary as car ownership will increasingly be displaced by fleet services that will operate cars at all hours of the day, necessitating faster replacement that could lift overall sales.

Christian Ludwig, analyst at Bankhaus Lampe, calls this a paradigm shift from simply building the best cars.

“I don’t believe that operational excellence will become obsolete, but it won’t be the main pillar to build success on, as it was in the past,” he says. “The current business model will not suffice to be successful.”

A third split between BMW and Daimler/Mercedes is how to build electric vehicles.

Both are involved in assembling batteries and creating high-powered charging units, but their approach to fitting electric vehicles into their future line-ups is diverging.

Last month BMW said the “architecture” used in its Dingolfing plant to build its future iNext car emphasises “unparalleled flexibility” that allows it to install three types of powertrains — electric, hybrid or combustion engine — depending on demand.


Daimler, by contrast, says it will invest up to €10bn by 2022 for an electric-only platform called EQ. This architecture will be scalable for all electric vehicles from coupes to sport utility vehicles.
Analysts say BMW is being cautious, in case the ramp-up to electric vehicles is not as steep as some believe.
Daimler’s more aggressive approach could work better in an optimistic sales scenario, but it could also result in heavy losses if the electric market stalls.
“Going for a complete, dedicated architecture offers you higher electric range and offers you a high flexibility regarding the body style,” says Daimler’s Mr Stark.
“The risk is, in a worst-case scenario, that electromobility is not coming and the €10bn is gone. But this is not going to happen.”