FT :Berkshire Hathaway more than doubles stake in Apple to $18bn

Berkshire Hathaway more than doubles stake in Apple to $18bn

Berkshire Hathaway more than doubled its stake in Apple after the end of 2016 to more than $18bn, chief executive Warren Buffett said on Monday.

The so-called Oracle of Omaha said on CNBC television that Berkshire holds about 133m Apple shares. That represents a sharp increase from the 61.2m that the investment group, which has holdings stretching from Wells Fargo to Coca-Cola, reported as of December 31 2016.

Mr Buffett said that Berkshire had stopped buying Apple shares after the technology group reported its quarterly earnings at the end of January given the increase in the company’s stock price. Apple shares have climbed 12.6 per cent since then and are up by 41.3 per cent over the past 12 months.

The 86-year old investor released his eagerly-awaited annual letter over the weekend, in which he suggested Berkshire may begin to more actively trade its large public equities portfolio.

>>> Pfeiffer Vacuum boards advise shareholders to not accept Busch offer

Pfeiffer Vacuum boards advise shareholders to not accept Busch offer
27 FEB 2017
Pursuant to § 27 of the German Securities Acquisition and Takeover Act (WpÜG), the Management Board and the Supervisory Board of Pfeiffer Vacuum Technology AG ("Pfeiffer Vacuum") today issued its reasoned statement on the offer submitted February 13, 2017, by Pangea GmbH, a company wholly owned by Busch SE ("Busch Group").
The Management Board and the Supervisory Board are of the opinion that the Busch Group's offer is not in the interest of Pfeiffer Vacuum and its shareholders. Both bodies therefore advise the shareholders of Pfeiffer Vacuum to not accept the Busch Group's offer.
Manfred Bender, CEO of Pfeiffer Vacuum Technology AG, says: "The Busch Group is aiming to gain active control of Pfeiffer Vacuum without paying a customary and appropriate takeover premium. A coherent strategic concept for potential collaboration has not yet been presented by Busch. In the best interest of Pfeiffer Vacuum and its shareholders, we must therefore reject this inadequate offer and advise our shareholders to not accept it."
Having carefully reviewed the offer and the consideration to be given in return, the Management Board and the Supervisory Board deem the latter, especially, to be inadequate. This position is supported by the customary assessments of UBS Europe SE and equinet Bank AG. The so-called inadequacy opinions examine the offer's adequacy from a financial viewpoint. Both banks concluded independently that the price of EUR 96.20 per Pfeiffer Vacuum share offered by the Busch Group is inadequate from a financial perspective.
The Busch Group stated in the offer document that it considers to put a profit transfer or domination agreement between the Busch Group and Pfeiffer Vacuum in place as soon as the offer has been successfully concluded. The Management Board and the Supervisory Board of Pfeiffer Vacuum take a critical view of this plan because the aim is to take de facto control over Pfeiffer Vacuum without paying shareholders a customary premium for acquiring such a controlling interest.
The premium on the share price offered in consideration is well below the premiums paid in comparable transactions, and constitutes a 7.46 percent discount on the Pfeiffer Vacuum share price as at February 10, 2017, the last trading day before the Busch Group published the offer document. The Pfeiffer Vacuum shares’ closing price on that day was EUR 103.95.
The Management and Supervisory Board believe that the Busch Group may actively interfere with Pfeiffer Vacuum's strategic setup, as the Busch Group has made several attempts to influence decisions within the remit of Pfeiffer Vacuum's Management Board or Supervisory Board in the past. Adding to this concern is the fact that the Busch Group has been changing its stated intentions with regard to its stake in Pfeiffer Vacuum within a short period of time.
Beyond that, it is the Management Board’s and the Supervisory Board's opinion that the offered consideration in no way reflects the vacuum industry's growth potential, as specified by the Busch Group itself, nor the resulting medium-term value upside of Pfeiffer Vacuum.

Manfred Bender, CEO of Pfeiffer Vacuum Technology AG, says: "Pfeiffer Vacuum is strategically, technologically and financially in a very good position to realize the growth potential on its own and in the interest of the company and its shareholders. We will continue to pursue our successful strategy of combining organic growth in markets such as Asia and the USA with strategic acquisitions, thereby offering our shareholders attractive long-term prospects. We are also reviewing further options to ensure our shareholders participate adequately in the value creation at Pfeiffer Vacuum."
The full reasoned statement of the Management Board and the Supervisory Board of Pfeiffer Vacuum can be viewed on the company website via the following link.

(TechCrunch) Superintelligent AI explains Softbank’s push to raise a $100BN Visi

Anyone who’s seen Softbank CEO Masayoshi Son give a keynote speech will know he rarely sticks to the standard industry conference playbook.

And his turn on the stage at Mobile World Congress this morning was no different, with Son making like Eldon Tyrell and telling delegates about his personal belief in a looming computing Singularity that he’s convinced will see superintelligent robots arriving en masse within the next 30 years, surpassing the human population in number and brainpower.

“I totally believe this concept,” he said, of the Singularity. “In next 30 years this will become a reality.”

“If superintelligence goes inside the moving device then the world, our lifestyle dramatically changes,” he continued, pointing out that autonomous vehicles containing a superintelligent AI would become smart robots.

“There will be many kinds. Flying, swimming, big, micro, run, two legs, four legs, 100 legs,” he added, further fleshing out his vision of a robot-infested future.

Son said his personal conviction in the looming rise of billions of superintelligent robots both explains his acquisition of UK chipmaker ARM last year, and his subsequent plan to establish the world’s biggest VC fund.

“I truly believe it’s coming, that’s why I’m in a hurry – to aggregate the cash, to invest,” he noted.

Son’s intent to raise $100BN for a new fund, called the Softbank Vision Fund, was announced last October, getting early backing from Saudi Arabia’s public investment fund as one of the partners.

The fund has since pulled in additional contributors including Foxconn, Apple, Qualcomm and Oracle co-founder Larry Ellison’s family office.

But it has evidently not yet hit Son’s target of $100BN as he used his MWC keynote as a sales pitch for additional partners. “I’m looking for a partner because we alone cannot do it,” he told delegates, smiling and opening his arms in a wide gesture of appeal. “We have to do it quickly and here are all kinds of candidates for my partner.”

Son said his haste is partly down to a belief that superintelligent AIs can be used for “the goodness of humanity”, going on to suggest that only AI has the potential to address some of the greatest threats to humankind’s continued existence — be it climate change or nuclear annihilation.

Though he also said it’s important to consider whether such a technology will be “good or bad”.

“It will be so much more capable than us –- what will be our job? What will be our life? We have to ask philosophical questions,” he said. “Is it good or bad?”

“I think this superintelligence is going to be our partner. If we misuse it it’s a risk. If we use it in good spirits it will be our partner for a better life. So the future can be better predicted, people will live healthier, and so on,” he added.

Given this vision for billions of superintelligence connected devices fast-coming down the pipe, Son is unsurprisingly very concerned about security. He said he discusses this weekly with ARM engineers. And described how one of his engineers had played a game to see how many security cameras he could hack during a lunchtime while waiting for his wife. The result? 1.2M cameras potentially compromised during an idle half hour or so.

“This is how it is dangerous, this is how we should start thinking of protection of ourself,” said Son. “We have to be very very careful.

“We are shipping a lot of ARM chips but in the past those were not secure. We are enhancing very quickly the security. We need to secure all of the things in our society.”

Son also risked something of a Gerald Ratner moment when he said that all the chips ARM is currently shipping for use in connected cars are not , in fact, secure. Going so far as to show a video of a connected car being hacked and the driver being unable to control the brakes or steering.

“There are 500 ARM chips [in one car] today — and none of them are secure today btw!” said Son. (Though clearly he’s working hard with his team at ARM to change that.)

He also discussed a plan to launch 800 satellites in the next three years, positioned in a nearer Earth orbit to reduce latency and support faster connectivity, as part of a plan to help plug connectivity gaps for connected cars — describing the planned configuration of satellites as “like a cell tower” and like “fiber coming straight to the Earth from space”.

“We’re going to provide connectivity to billions of drivers from the satellites,” he said.

For carriers hungry for their next billions of subscribers as smartphone markets saturate across the world, Son painted a pictured of vast subscriber growth via the proliferation of connected objects — which handily of course also helps his bottomline, as the new parent of ARM.

“If I say number of subscribers will not grow it’s not true,” he told the conference. “Smartphones no — but IoT chips will grow to a trillion chips — so we will have 1TR subscribers in the next 20 years. And they will all be smart.”

“One of the chips in our shoes in the next 30 years will be smart than our brain. We will be less than our shoes! And we are stepping on them!” he joked. “It’s an interesting society that comes.

“All of the cities, social ecosystem infrastructure will be connected,” he added. “All those things will be connected. All connected securely and managed from the cloud.”

(Makor) - Share Class Report

February 27, 2017 

 

MAKOR - Share Class Report

 

Last week, our portfolio made a gain of 16 bps. Top calls for the week to come:

 

 

o    - ISPR IM / + ISP IM

 

o    INTESA has finally decided to drop the bid on Generali. 

 

o    ISPR discount to ISP narrowed from 9% to 4% on the fact that ISP fell more than ISPR when the deal intentions on G IM were announced. 

 

o    Now that the deal is dropped, and as we don’t believe in a ISPR / ISP conversion, we Chinese the spread here. 

 

o    ISPR / ISP could return to 91%

 

 

o    + VOW3 / - VOW: 

 

o    VOW numbers are very good and company is starting back a nice dividend payment (20% payout)

 

o    We think this good numbers, along with dividend policy, shows company is confident that the Diesel emission scandal is under control.

 

o    Spread VOW3 / VOW could return to parity.

 

 

Have a great start of week !!

 

 

 

 

  

  ​     ​     ​

 

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(GS) Europe : Banks - Buy BNP & CSGN

IBs 4Q16: “Unusual suspects” outperform again; BNP, HSBC gain as DBK suffers

Buy: BNP and Credit Suisse
We see 28% upside at CS, with a plain-vanilla cap hike a pragmatic alternative to a complex part-IPO of its Swiss bank; we are Buy rated. We see 44% upside at BNP where strong IB trends add to the investment case (capital formation, dividends, receding fin-reg risk, valuation). All in, our EPS for “Group 1” is +1% for 2017 and -3% for 2018.

>>> Safran Forecasts Revised Higher, PT Lifted to EU69/Shr: Natixis

Safran Forecasts Revised Higher, PT Lifted to EU69/Shr: Natixis

Safran price target raised to EU69 (from EU66) to factor in Zodiac Aerospace deal, and the assumption that LEAP 1B will enter service as planned, Natixis (neutral) says in note.
  • After a modest stock performance in 2017 vs. civil aerospace sector, Safran’s valuation looks more appealing
  • 2018/2020 estimates raised by 4% to 5%
  • Raise 2018 forecasts to reflect a more successful LEAP transition than previously thought, continued progress by the equipment division, more effective dollar hedging
  • 2018 Ebita estimate lifted to EU2.650b from EU2.551b
  • Dilutive impact resulting from the LEAP should peak in 2018, and negative bridge is to narrow in 2018 with loss per engine limited to an estimated EU600k

(MAKOR) SYNGENTA UPDATE - OUR VIEW POST CADE APPROVAL

SYNGENTA (SYNN VX)

CADE recommends approval of Syngenta/ChemChina transaction – Our Thoughts on the next steps

On Friday (24/2), CADE announced that they recommend approval of the proposed Syngenta-ChemChina transaction without restrictions. Following CADE’s initial approval of the transaction, there is a 15 calendar day appeal period during which any interested party can object to the approval and ask CADE’s Administrative Tribunal for Economic Defense to analyse it. Therefore, the approval will not become final until 11 March following the lapsing of the appeal period.

 

The remaining 3 significant approvals are the EC (Phase II decision expected on 12 April), the US (second request received on 28 January) and MOFCOM. We remind that in our previous contact with Syngenta, the companies stressed that the receipt of the second request does not in any way delay the timeframe and the companies still expect to close the transaction in Q2. The companies still believe it is possible to receive the FTC approval prior to the expected EC approval on 12 April.

 

Syngenta IR reminded us that the parties have already submitted a package of remedies to the FTC and the EC. We believe that MOFCOM will be the last regulatory authority to rubber-stamp the deal and believe that all approvals could be in place by the end of May as we initially had Brazil as a potentially gating item given their statutory 240 day initial review period.


We think that todays’ news and the confirmation by the IR that they have already submitted remedies to both EC and FTC make the spread extremely compelling. We think that the current level is at 79% deal probability is still too wide.