Gunvor, one of the world’s biggest independent oil traders, has received approaches from investors interested in buying a stake or partnering with the Swiss-based company.
However, no deal is imminent and Gunvor’s billionaire founder Torbjorn Tornqvist has no plans to sell the trading house at the moment, according to people with knowledge of the situation.
Gunvor declined to comment.
The Wall Street Journal reported on Friday that Gunvor has discussed a possible sale of the entire company with at least two competitors.
While Mr Tornqvist wants to remain the company’s dominant shareholder, he has not ruled out selling more shares either to staff or a strategic partner, one of the people said.
Gunvor was founded in 2004 by Mr Tornqvist and Gennady Timchenko, an oligarch with close ties to the Kremlin.
After the US imposed sanctions on Mr Timchenko in 2014 he sold his stake in the company stake to Mr Tornqvist, whose holding jumped to more than 90 per cent.
The Swedish executive has since reduced his stake to 61 per cent, selling shares to senior traders and employees as part of a shift to a partnership model.
Trading houses like Gunvor that specialise in oil emerged as big winners from the commodity price crash, reporting some of their best results on record.
Gunvor currently trades around 2.5m barrels of oil per day and recently reported an increase in underlying profits for 2016.
Gapping down
In reaction to disappointing earnings/guidance:
In reaction to disappointing earnings/guidance:
- RT -9.3%, (also announces new CEO; no updates on strategic alternatives)
- NQ -6.6%, (also provides update to the completion of FL Mobile divestment and sale of Showself's Live Social Video Business)
- WDFC -4.2%, PSMT -2.6%
Select metal producer names trading lower:
- MTL -3.6%, VALE -3.2%, CLF -3%, RIO -2.2%, MT -1.6%, FCX-1%, BBL -0.9%, BHP -0.8%
Other news:
- DRYS -23.3% (to effect a 1-for-4 reverse stock split of common shares; will begin trading on split-adjusted basis at the open on April 11, 2017 under the existing trading symbol)
- CLNT -13.1% (modestly pulling back following yesterday's 129% move higher)
- CBIO -11.2% (files a Form EFFECT (Notice of Effectiveness) for an S-1)
- CJ -10.3% (prices 7 mln common stock offering at $32.50/share)
- VEON -4.8% (prices offering of 70 mln common shares by selling shareholders at $3.75)
- ANGO -4.7% (prices secondary offering by selling stockholders of 2.35 shares of common stock at $16.20 per share)
- EGLE -3.4% (files for offering of $750 mln of mixed securities, approx 34.3 mln shares of common stock, up to 537 shares issuable upon exercise of the Warrants by selling shareholders and up to 537 shares issuable upon exercise of the Warrants by Eagle Bulk Shipping)
- NPTN -2.2% (NeoPhotonics CFO Ray Wallin will resign effective May 15 and remain as a consultant for a three-month transition period; Company has retained an executive search firm to identify a successor CFO)
- GLPG -1.7% (announces a share capital increase arising from warrant exercises)
- MDT -1.5% (announces voluntary worldwide recall of its StrataMR adjustable valves and shunts)
- SNY -1% (likely in sympathy with AZN and NVO, which were downgraded at HSBC)
- SHPG -0.9% (likely in sympathy with AZN and NVO, which were downgraded at HSBC)
- MRK -0.6% (receives a CRL from the FDA regarding its sNDA for JANUVIA, JANUMET, and JANUMET XR)
Analyst comments:
- AZN -1% (downgraded to Reduce ratings at HSBC)
- NVO -1% (downgraded to Reduce ratings at HSBC)
Actelion: EMA concludes safety review of Uptravi, decides that the medicine can continue to be used according to the prescribing information
The European Medicines Agency (EMA) has completed the review of Uptravi (selexipag) which was initiated following 5 patient deaths in France. EMA confirms that the medicine can continue to be used by both new and existing patients, according to the current prescribing information. No changes to the prescribing information are considered necessary following the review.
Gapping up
In reaction to strong earnings/guidance:
In reaction to strong earnings/guidance:
- RYI +5.7%, (details Q1 guidance, anticipates higher revenue compared to the fourth quarter of 2016 and the first quarter of 2016)
- AUO +2.1%, (Q1 consolidated revs above consensus)
Select metals/mining stocks trading higher:
- GFI +3.6%, KGC +3.4%, SBGL +3.2%, AU +3.2%, HMY +3%, IAG+1.9%, AUY +1.8%, HL +1.7%, PAAS +1.7%, ABX +1.5%, GOLD+1.4%, GDX +1.4%, NEM +1.3%, GLD +0.9%, SLV +0.7%
Select oil/gas related names showing strength:
- WLL +1.4%, CHK +1.4%, APA +1.3%, PBR +1.3%, KMI +1.1%, RIG +0.9%
Other news:
- AMCN +10.4% (discloses the establishment of Unicom AirMedia jointly with China Unicom (CHU) and Chengdu Haite Kairong Aeronautical)
- TEAR +9.3% (continued strength)
- AUPH +8.5% (Lumira Capital (Benjamin Rovinski-who is also Director of company) discloses 4.77% passive stake)
- ORPN +8.4% (announces termination of securities offering)
- PTIE +8.1% (continued strength)
- SB +7.5% (likely in sympathy with shipping peers DSX and GOGL, which were upgraded at JPM today)
- SBLK +7% (likely in sympathy with shipping peers DSX and GOGL, which were upgraded at JPM today)
- HYGS +6.3% (Hydrogenics awarded funding by Canada's Federal Government's Ministry of Natural Resources (NRCan) to build two hydrogen fueling stations for fuel cell vehicles )
- SDRL +6.2% (Seadrill Partners (SDLP) has secured a one well contract with BP (BP) Canada Energy Group ULC for the West Aquarius in eastern Canada)
- CBR +6% (likely due to co's recently announced acquisition of AMRH, which reported earnings yesterday)
- SKLN +5.4% (continued strength)
- OCLR +3.8% (will replace United Bankshares in the S&P SmallCap 600)
- SDLP +3.1% (Seadrill Partners (SDLP) has secured a one well contract with BP (BP) Canada Energy Group ULC for the West Aquarius in eastern Canada)
- BLDP +2.7% (announced that it has closed the transaction announced in Feb relating to technology transfer, licensing and supply arrangements with strategic partner Zhongshan Broad-Ocean Motor Co)
- CDE +2.5% (reports Q1 production results; reaffirms FY17 production guidance)
- RTN +2.5% (defense name higher following US missile strike on Syria)
- LMT +1.5% (defense name higher following US missile strike on Syria)
- UBSI +1.2% (will replace The WhiteWave Foods in the S&P MidCap 400)
Analyst comments:
- DSX +8.7% (upgraded to Overweight from Neutral at JP Morgan)
- TWLO +6.2% (upgraded to Overweight from Neutral at JP Morgan)
- LOGM +1.4% (upgraded to Outperform from Market Perform at Cowen)
- GOGL +1.3% (upgraded to Overweight from Neutral at JP Morgan)
- WMB +0.8% (upgraded to Buy from Neutral at Citigroup)
Largest Stock Outflows in 40 Weeks as Bond Inflows Rise: BofAML
The week through April 5 saw $7.4b outflows from equities, largest in 40 weeks, Bank of America Merrill Lynch strategists Michael Hartnett and Jared Woodard write in report citing EPFR Global data.
- Bonds recorded $12.4b of inflows, most in 8 weeks, with Treasuries posting largest inflows in 10 weeks
- U.S. stocks saw largest outflow in 82 weeks ($14.5b); Europe had second straight week of inflows ($900m); Japan drew $300m and $2.4b entered EM
- Tech funds attracted $800m of inflows, with inflows to robot funds surging
- By sector, materials, utilities, real estate and infrastructure also posted inflows; energy, financials, consumer, healthcare saw outflows