RTR - Vivendi tells EU it may control Telecom Italia after shareholder meeting:

French media group Vivendi (VIV.PA) has told the European Commission it could "de facto" control Telecom Italia (TLIT.MI) after a shareholder meeting next month appoints a new board of directors, three sources close to the matter said.

The group, which is Telecom Italia's top shareholder with a 24 percent stake, filed a pre-emptive notification to the Commission as it seeks to win two-thirds of the company's board seats, two of the sources said.

To do this it needs to get its slate of nominees approved by a majority of shareholders at the May 4 meeting.

An EU Commission spokesman confirmed that it had received a notification from Vivendi and would rule on the matter by May 12.

"The investigation is ongoing," spokesman Ricardo Cardoso said.

Sources told Reuters last week that Vivendi was also considering putting its chief executive Arnaud de Puyfontaine forward as Telecom Italia's next chairman, potentially aggravating concerns about the French group's growing influence over Italian companies.

Vivendi's influence at Telecom Italia has come under the spotlight after it took a significant holding in Italian broadcaster Mediaset (MS.MI), leading to speculation over whether it plans to combine the two companies.

Vivendi has until now always maintained that it does not control Telecom Italia.

>>> US Gapping down

Gapping down
In reaction to disappointing earnings/guidance:
  • RECN -8.4%, SCHN -2%
M&A news:
  • FSLR -1.2% (First Solar says reviewing alternatives for the sale of its interests in 8point3 Energy Partners)
Other news:
  • CAFD -15.2% (First Solar says reviewing alternatives for the sale of its interests in 8point3 Energy Partners)
  • SYNC -10.8% (to offer shares of its common stock in an underwritten public offering)
  • VII -9.4% (after surging 150% higher)
  • TEUM -6.5% (Form 10-K for the year ended December 31, 2016 contained a going concern qualification paragraph in the audit opinion from its independent registered public accounting firm)
  • INNL -5.9% (modestly pulling back)
  • CHU -5% (following mixed ownership plan)
  • WGO -2.9% (Winnebago commences secondary offering of 2,293,277 shares by funds affiliated with Summit Partners)
  • CLNS -2.5% (following block trade pricing)
  • GPRO -2% (to offer $150 mln aggregate principal amount of convertible senior notes due 2022 in a private placement)
  • BSBR -2% (informs that the secondary public offering of 80 mln share deposit certificates held by Qatar Holding LLC was concluded at R$25.00)
Analyst comments:
  • SGYP -5.1% (downgraded to Sell from Neutral at Citigroup)
  • AMD -4.9% (initiated with a Sell at Goldman)
  • TMUS -1.5% (downgraded to Hold from Buy at Deutsche Bank)
  • BG -1.5% (downgraded to Underweight from Neutral at JP Morgan)

>>> US Gapping up

Gapping up
In reaction to strong earnings/guidance:
  • YUMC +12.3%, ALQA +7.3%, STZ +5%, TIG +3.1%, BBBY +2.9%,LB +2.9% (March SSS), KMX +2.6%, LW +2.5%, COST +1.8% (March SSS), MSM +1.5%
M&A news:
  • TENX +30% (announces review of strategic alternatives - engaged Ladenburg as advisor; CEO John Kelley resigned)
  • SUN +11.5% (agrees to sell a majority of its convenience stores to 7-Eleven in a $3.3 bln deal)
  • ZPIN +4.7% (enters into definitive merger agreement for $18.20/share)
Select metals/mining stocks trading higher:
  • MTL +4.8%, MT +1.7%, VALE +1.7%, BBL +1.3%, CLF +1.1%, RIO+1%, BHP +1%, AU +0.9%, X +0.9%
Other news:
  • FSLR +-1.2% (First Solar says reviewing alternatives for the sale of its interests in 8point3 Energy Partners)
  • LEDS +19.6% (may be related to new credit agreement; also the company confirmed earnings release date will be April 12)
  • MSDI +13.8% (announces a new customer relationship with ZUMM Everything for Android)
  • RWLK +13.2% (U.S. Department of Veterans Affairs purchased 28 ReWalk Personal Exoskeleton Systems to support an ongoing national multi-center clinical trial)
  • URRE +12.4% (reports positive geophysical results at its Columbus Basin lithium project; plans for drilling to commence in July of this year)
  • WYY +11.9% (very thinly traded; Nokomis Capital affirms 15.4% active stake, has engaged, and intend to continue to engage, in discussions with the management and the Board)
  • KOPN +9% (announces two agreements w/ 'two leading global OLED companies' as part of its manufacturing strategy for its OLED displays introduced at CES in January 2017)
  • BSTG +8.7% (presents preclinical data of its Cellspan Esophageal Implant)
  • JAZZ +6.6% (Jazz Pharma resolves patent litigation w/ Hikma Pharma related to Xyrem / sodium oxybate oral solution)
  • MACK +5.8% (announces a special cash dividend of $140 million on the company's common stock)
  • BLDP +4.6% (receives $11 mln supply agreement with Zhongshan Broad-Ocean Motor Co)
  • SUPN +2.8% (receives final FDA approval for Trokendi XR for migraine prophylaxis in adults and adolescents)
  • CARA +2.4% (among stocks with favorable commentary on Wednesday's Mad Money)
  • MDT +1.9% (Reuters reporting that Medtronic medical supplies business could fetch $6 bln in sale to Cardinal Health)
  • VRX +1.1% (confirms that its Bausch + Lomb unit received 510(k) clearance from the FDA for the Stellaris Elite Vision Enhancement System)
  • UN +0.9% (provides outcome of co's strategy review; Reconfirms commitment to long-term model; to launch a share buy-back of €5 bln this year; dividend hike of 12%)
Analyst comments:
  • AKTX +16.6% (initiated with an Outperform at William Blair)
  • SCON +16.4% (upgraded to Buy at Rodman & Renshaw; tgt $3)
  • PLUG +5.3% (target raised to $4 from $3 at Rodman & Renshaw)
  • GOGL +4.3% (upgraded to Buy at DNB Markets )
  • NTNX +4.2% (initiated with a Buy at BofA/Merrill)
  • RNN +3.3% (resumed with a Buy at Rodman & Renshaw; tgt $2)
  • GBX +2.1% (upgraded to Buy from Neutral at BofA/Merrill)

>>> Gartner says worldwide end-user spending on devices will grow 2% in 2017, wh

Gartner says worldwide end-user spending on devices will grow 2% in 2017, while unit shipments remain flat
  • "Users of PCs, ultramobiles and mobile phones are buying new devices at higher average selling prices, resulting in growth in end-user spending in 2017. Gartner, Inc. estimates that end-user spending will increase by 2 percent in 2017, to nearly $600 billion in current U.S. dollars. Spending on mobile phones will represent 67 percent of that figure"

>>> L Brands reports March comps of -10% vs +3% (VS +2%, BBW +5%) year ago and -

L Brands reports March comps of -10% vs +3% (VS +2%, BBW +5%) year ago and -13% (VS -16%, BBW -4%) last month (43.10)
  • LB prior guidance equated to March/April combined comps down low to mid single-digits.
    • LB expected the Easter shift negative impact on March comps by 2-3 pts.
  • Co reported net sales -7% to $951.4 million for the five weeks ended April 1, 2017
  • Vicotria's Secret comps of -13% Y/Y
  • Bath & Body Works comps were flat Y/Y
--> Stock +2.3% pre open

>>> Constellation Brands beats by $0.12, beats on revs; guides FY18 EPS above co

Constellation Brands beats by $0.12, beats on revs; guides FY18 EPS above consensus; raises dividend 30% (161.40)
  • Reports Q4 (Feb) earnings of $1.48 per share, excluding non-recurring items, $0.12 better than the Capital IQ Consensus of $1.36; revenues rose 5.5% year/year to $1.63 bln vs the $1.59 bln Capital IQ Consensus. This reflects organic net sales growth on a constant currency basis of 7%.
    • Net sales for beer increased 11%. This was due to a 10 % increase in organic net sales driven primarily by volume growth and favorable pricing.
    • Wine and spirits net sales were flat. This reflects a four % increase in organic net sales and the acquisition benefit from Prisoner, Charles Smith and High West, offset by the divestiture of the Canadian wine business.
  • Co issues upside guidance for FY18, sees EPS of $7.70-8.00, excluding non-recurring items, vs. $7.51 Capital IQ Consensus Estimate.
    • For fiscal 2018, the beer business is targeting net sales growth in the range of 9 - 11 % and operating income growth in the range of 11 - 13 %.
    • For the wine and spirits business, the co expects net sales to decrease in the range of 4 - 6 % and operating income to be flat. These projections include the estimated impact of the December 2016 divestiture of the Canadian wine business and the estimated incremental benefits from High West, Charles Smith and Prisoner acquisitions. Excluding the $311 million of net sales and $50 million of operating income from the fiscal 2017 wine and spirits segment results related to the Canadian wine business divestiture, the company expects net sales growth of 4 - 6 % and operating income growth of 5 - 7 % for fiscal 2018.
  • On April 5, 2017, Constellation's board of directors declared a quarterly cash dividend of $0.52 per share of Class A Common Stock and $0.47 per share of Class B Common Stock, payable on May 24, 2017, to stockholders of record as of the close of business on May 10, 2017. This represents an increase of ~30% in the dividend rate per share for both the Class A and Class B Common Stock. During fiscal 2017, the company repurchased ~7.4 million shares of common stock for $1.1 billion, including ~5 million shares of common stock for $750 million during fourth quarter fiscal 2017.