>>> US Early premarket gappers

Early premarket gappers
Gapping up:
  • NERV +15.8%, PANW +13.5%, CIEN +11.8%, NADL +7.6%, NIHD +5.8%, GT+4.9%, DG +4.9%, BOX +4.3%, DBVT +3.7%, FEYE +3.1%, PFPT +2.3%, MPC+1.8%, AKG +1.6%, TNK +1.6%, HACK +1.4%, RIG +1.3%, QGEN +1.3%,XON +1.1%, GOGL +1.1%, FTNT +1%, NVDA +0.7%, DCI +0.7%, BABY+0.6%, TSRO +0.5%, CYBR +0.5%
Gapping down:
  • MBOT -7.3%, SMTC -3.1%, FTR -1.5%, DSGX -1.4%, OLLI -1.3%, SHPG-1.1%, HPE -1.1%, EXPR -0.5%

>>> PPG walks way from €27bn Akzo Nobel takeover

PPG walks way from €27bn Akzo Nobel takeover
US group PPG Industries has walked away from a prospective €26.9bn takeover of paint and coatings rival Akzo Nobel.

In a statement on Thursday, PPG said it had withdrawn its proposed merger deal and would no longer pursue the Dutch company after months of resistance from the Dulux paint-maker. PPG’s decision comes two days after the Netherland’s financial regulator rejected its request for an extension beyond June 1 for it to make a formal takeover bid.

>>> What to look at today - 1st of June 2017

Dow -0.10% S&P -0.05% Nasdaq -0.08% Russell -0.07%
US mkt closed lower for a 2nd day in a row. Financials were under pressure after cautious commentary on market trends and conditions at the Deutsche Bank Financial Services Conference, slowing loan growth, rising delinquencies for sub-prime auto loans, and a flattening of the yield curve mentionned. Technology sector (-0.3%) push by mega cap. WTI Continue to trade lower -2.9% @ $48.23, energy -0.4%. The seven remaining sectors settled in the green with gains between 0.2% and 0.5%. Countercyclical spaces like utilities (+0.5%), telecom services (+0.4%), and health care (+0.4%) led the charge. Fed's Beige Book indicated modest to moderate economic growth from early April through late May for most of the 12 Federal Reserve Districts. US after hours PANW +11.% following earnings/guidance (boosting cybersecurity names), PF +7% and CAG +1.3% on M&A speculation... SMTC -3%, HPE -2% following earnings/guidance. Asian indices are mixed again, tracking a lackluster US session where investors are biding their time before Friday's non-farm payrolls. Oil was in focus with a steep decline in US hours on reports of expanded Libya production, though some of the selloff was reversed on a large API inventory draw. Fed's Williams speaking in Asia also voiced possibility of a total of 4 rate hikes this year if US economic growth strengthens, though he still sees 3 as the baseline scenario. China is leading regional indices to the downside after a much weaker than expected Caixin Manuf PMI sank into contraction for the first time in 11 months. Nikkei225 is faring better with a modest lift.

Nikkei +1.03% Hang Seng +0.495 CSI +0.18% Shanghai -0.15%

Eur$ 1.1239 CNH 6.7951 CNY 6.7390 JPY 110.98 GBP 1.2864 CHF 0.9690 RUB 56.70 WTI$ 48.71 +0.81%

S&P +0.05% EuroStoxx +0.17% Dax +0.10% FTSE +0.30% SMI +0.02%

Macro :
- Fed Beige Book: Labor Markets Continue to Tighten, Expansion Pace Modest or Moderate
- U.K. Conservatives Lead Labour 44%-38%: Sun/SurveyMonkey Poll / U.K. Conservatives 42%, Labour 39%: Times/Yougov Poll
- EU’s Juncker Says U.S. Can’t Exit Paris Climate Pact
- Swiss GDP Expands 0.3% Q/q in 1Q; Est. Expands 0.5% Q/q

Keep an eye on :
- 888 LN : 888 Offering by Holder Prices at 270p Per Share
- AKZA NA :PPG Faces June 1 Deadline on Akzo Bid After Extension Denied
- AKZA NA : ICGN Concerned About Proposed Dutch Takeover Time-Out Law: FD
- AAPL US : Next IPhone Sale Likely to Start in Nov.: Hua Nan Securities
- CS FP : AXA to Remain Paschi Shareholder, No Interest in Generali: Sole
- BKG LN : Berkeley Group Agrees Deal for London Royal-Mail Site: CoStar
- CGG FP : CGG Seeks to Impose 48-Hour Deadline for Creditor Accord: Echos
- DBK GY : Deutsche Bank to Hire 50 for Asia Wealth Business in 2H: Yim
- G4S LN : G4S, Segro Added to FTSE 100 as Hikma, Intu Drop Out
- GAS SM : Gas Natural kicks off auction of Italian assets; Italgas in bidding
- GS US : Goldman Sachs Falls as Much as 4%, Tests 200-DMA Support
- HIK LN : G4S, Segro Added to FTSE 100 as Hikma, Intu Drop Out
- INGA NA : ING to Move More Trading Jobs to London From Amsterdam: FD
- INTU LN : G4S, Segro Added to FTSE 100 as Hikma, Intu Drop Out
- ITV LN : ITV ‘Cheap for a Reason,’ Cut to Hold at HSBC on Ad Momentum
- LXS GY : Citadel Has Big Short Against Berkshire-Backed Lanxess
- LIN GY : Linde Labor Reps Said Not Unanimous Against Praxair Deal:Reuters
- NOVOB DC : Novo Nordisk’s Rebinyn Gets FDA Approval for Haemophilia B
- NOVOB DC : Novo CSO Sees ‘Great’ Growth Prospects in Key Products: Borsen
- PF US :Pinnacle Foods approached by Conagra Brands for potential takeover - Reuters
- POP SM : Popular Extends Period for Potential Buyers to Lodge Bids: Pais / IMF to Highlight Banco Popular Weakness in Report: Vozpopuli / Popular Entrusts Cap Increase Option to Deutsche: Confidencial
- POP SM : Popular’s Saracho to Meet With ECB Next Tuesday: Cinco Dias
- RB/ LN : Mead Johnson Shareholders Approve RB’s $90-Per-Share Buyout
- SKY LN : Murdochs Said to Have Spoken With Ofcom Over Sky Bid: Telegraph
- LOCAL FP : SoLocal Says CEO Jean-Pierre Remy to Quit End-June
- TLGO SM : Renfe Ratifies Purchase of 15 High-Speed Trains, Talgo Says
- TGYM IM : Technogym Parent Wellness Starts Sale of Up to 16m Shares
- TSRO US : Tesaro Said to Explore Sale, WSJ Says
- TKA GY : Juncker: We Must Defend EU Steel Industry More Than We Do
- VOE AV : Voestalpine FY Revenue Beats Highest Est.

>>> Europe : Brokers Upgrades & Downgrades - 1st of June 2017

>>> Up
*Hamburger Hafen Raised to Buy at HSBC, PT EU24
*Vivendi Raised to Outperform at MainFirst, PT EU22.50

>>> Down
*Abertis Cut to Market Perform at Raymond James
*Alma Media Cut to Reduce at Inderes, PT EU6
*BT Cut to Equal-weight at Morgan Stanley, PT 350p
*Bunzl Cut to Hold at HSBC, PT GBP25.08
*Drillisch Cut to Sell at Citi
*ITV Cut to Hold at HSBC, PT GBP2.15
*JM Cut to Sell at DNB Markets, PT SEK300
*Nicox Cut to Hold at Stifel, PT EU11.80
*Seadrill Cut to Sell at SocGen, PT NOK3.63

>>> Initiation
*Altamir New Buy at Jefferies
*Eurazeo New Hold at Jefferies
*Phoenix New Outperform at RBC, PT 900p
*Richemont Assumed Outperform at Raymond James, PT CHF93
*Wendel New Buy at Jefferies

>>> Call

>>> Pinnacle Foods approached by Conagra Brands for potential takeover - report

Pinnacle Foods approached by Conagra Brands for potential takeover - report
01 JUN 2017
Pinnacle Foods [NYSE:PF], a New Jersey-based food group, has been approached by Conagra Brands [NYSE:CAG] that has shown interest in a potential takeover, according to a newswire report.
The approach was made over the past few weeks, Reuters reported, citing sources familiar with the matter. It remains uncertain if Pinnacle will respond or Conagra, an Illinois-based food business, will push further ahead, the item added.
Both firms were mulling bids to acquire the North American food operations of Reckitt Benckiser [LON:RB], as reported.


Exclusive: Conagra makes takeover approach to Pinnacle Foods - sources
Reddi-wip whipped cream owner Conagra Brands Inc (CAG.N) has approached Pinnacle Foods Inc (PF.N), the maker of packaged foods such as Vlasic pickles, to express interest in an acquisition, people familiar with the matter said on Wednesday.

Conagra's approach shows that Pinnacle Foods remains an acquisition target, three years after its $4.3 billion sale to Hillshire Brands was canceled after Hillshire agreed to sell itself to Tyson Foods Inc (TSN.N) for $7.7 billion.

Hillshire was led at the time by Sean Connolly, who is now chief executive of Conagra. His second attempt at an acquisition of Pinnacle Foods underscores the need for further consolidation in the frozen food and condiments sectors, as sales continue to decline with consumers opting for healthier choices.

Conagra's approach to Pinnacle Foods took place in the last few weeks, the sources said. There is no certainty that Pinnacle Foods will choose to engage, or that Conagra will pursue a potential deal further, the sources said on Wednesday.

The sources asked not to be identified because the matter is confidential. Conagra, which has a market value of $16.2 billion, declined to comment. Pinnacle Foods, which has a market value of $7.2 billion, did not immediately respond to a request for comment.

Chicago, Illinois-based Conagra, whose brands include Frontera salsa and Orville Redenbacher's popcorn, has been seeking to reinvent itself since selling its private label unit for $2.7 billion in 2016 to focus on its branded food business.

Last year it spun off its $6.9 billion frozen potato business, Lamb Weston Holdings Inc (LW.N). It has also divested a number of its smaller underperforming brands, and this week agreed to sell its Wesson oil brand to Folgers coffee maker J. M. Smucker Co (SJM.N) for $285 million.

Parsippany, New Jersey-based Pinnacle, whose brands include Duncan Hines baking products and Birds Eye frozen vegetables, has made a push towards healthier offerings. It bought Boulder Brands Inc, owner of Udi's Gluten Free Bread, for $975 million last year.

Conagra and Pinnacle Foods are among the companies weighing offers for Reckitt Benckiser Group's (RB.L) North American food business, estimated to be worth around $3 billion, Reuters reported earlier on Wednesday.