>>> GKN rumored to be eyed by SAIC Motor for 450p-per-share takeover bid - repor

GKN rumored to be eyed by SAIC Motor for 450p-per-share takeover bid - FT

SAIC Motor Corporation [SHA: 600104] of China is rumoured to be exploring a 450p-per-share offer for the UK-based aerospace and auto engineering group GKN [LON:GKN], the Financial Times reported. US advisers are believed to have been working on the potential deal, which would give GKN a valuation of close to GBP 8bn (USD 10.7bn), the FT’s market report said, without citing a source for the takeover chatter.

The report noted weekend media items which suggested bidders might be deterred by GKN’s GBP 2.1bn pension black hole.

>>> Ubisoft's Guillemot brothers close to buying further 3.5% stake to counter V

Ubisoft's Guillemot brothers close to buying further 3.5% stake to counter Vivendi – report 
The Guillemot brothers, the founding family of French videogames publisher Ubisoft [EPA:UBI], are understood to be close to acquiring an additional 3.5% shareholding in the company, French daily Le Figaro reported.

The unsourced report said the Guillemots, who already own 9.2% of Ubisoft and control the board of the company, are seeking to prevent attempts of a creeping takeover by French media group Vivendi [EPA:VIV], which already owns 22.72% of Ubisoft and is asking to have representatives seating at the board of the group.

The original article appeared in print; Page 24


Source Le Figaro

>>> Leonardo–Finmeccanica could consider deals with Airbus - reported rumour (tr

Leonardo–Finmeccanica could consider deals with Airbus - reported rumour

Leonardo-Finmeccanica, the Italy-based aerospace and transport technology group, could consider deals with Airbus, reported the Italian daily La Repubblica. The report said that Chief Executive Mauro Moretti had said before the Brexit vote that the company is ready to make buys or swap divisions with the aim to grow in the helicopter sector and in the defense area. Leonardo closed 1H 2016 with earnings of EUR 200m. Leonardo generates 14% of its revenues in the UK and has an order of EUR 2bn with the UK government about the construction of some Apache helicopters.

The report suggested speculations that Leonardo could study deals around its missiles division which could interest Airbus or could consider deals around DRS in the US. The report did not give further details

Sourced from print, page 19

La Repubblica

>>> What to look at today - 6th of September 2016

Asian equity markets are less volatile and more mixed after yesterday's rally on perceived caution by the FOMC following Friday's non-farm payrolls data. The biggest macro ripple in the past 24 hours has been the announcement that Saudi Arabia and Russia have signed an agreement to cooperate on oil production, even though analysts remain skeptical that a production freeze could take place in the near term. Oct WTI crude oil had risen as high as $45.60's earlier, but retreated in late electronic trade. In FX, JPY strengthened after comments by PM Abe advisor Hamada calling for caution in terms of further BOJ policy easing, with USD/JPY falling about 30pips to 103.40. After a set of mixed commentary by BOJ Gov Kuroda overnight, acknowledging the pressure on financial sector from negative rates while reiterating commitment to achieving inflation target with more easing if needed, PM Abe's advisor Hamada said the central bank should wait until the Fed to decide on whether to expand its policy easing.

Nikkei +0.28% Hang Seng +0.38% CSI +0.45% Shanghai +0.42%

Eur$ 1.1148 CNH 6.6901 CNY 6.6807 JPY 103.60 GBP 1.3325 CHF 0.9804 RUB $64.7939 WTI$45.36 (+2.07%)

S&P +0.06% EuroStoxx +0.20% Dax +0.15% SMI +0.10%

Macro :
- EU Plans Legislation by Year-End on Market-Risk, Leverage Rules
- Nouy Says Banks Must Rethink Business Models for Profitability


Keep an eye on :
- ABBN VX : Cevian Still Wants to Spin Off ABB’s Power Grids Unit, TT Says
- AIR FP : Vietnam Air Signs Deal to Buy 20 Airbus Planes at $3.25b: Minh
- AIR FP : Airbus CEO Confirms 2016 Delivery, Order Targets: Les Echos
- BALSN SW : Basilea Starts Phase 1/2a Study With Oncology Drug Candidate
- BAYN GY : Bayer Sweetens Monsanto Bid Again as Takeover Talks Advance, by 2% to $127.5 per share
- EN FP : Bouygues Files Complaint Vs Orange, Free, L’Express Reports
- ACA FP : Credit Agricole CEO Asks for 5-Year Halt on Capital Rule Revamp
- DTE GY : Deutsche Telekom Reviews East European, Greek Ops: Handelsblatt
- GLPG NA : Galapagos Gets Orphan Drug Designation in EU for GLPG1690
- ING FP : Ingenico Lowers 2016 Targets on U.S. Market, Brazil
- NESN VX : Nespresso Accelerates Expansion of Coffee Boutiques Across U.K.
- SOLB BB : Solvay Starts Up a New Hydrogen Peroxide Plant in China
- SYNN VX : Chemchina Extends Public Tender Offers for Syngenta Until Nov. 8
- UCG IM : UniCredit Raised at HSBC on Better Earns Momentum, Restructuring
- VOW3 GY : Volkswagen Said to Near Deal to Take 19.9% Stake in Navistar:WSJ

>>> Europe : Brokers Upgrades & Downgrades - 6th of September 2016

>>> Up
*ASSOCIATED BRITISH FOODS RAISED TO NEUTRAL VS SELL AT GOLDMAN
*BALOISE RAISED TO MARKET PERFORM VS UNDERPERFORM AT KBW
*BANCO DAVIVIENDA RAISED TO BUY VS NEUTRAL AT CITI
*BBVA RAISED TO EQUALWEIGHT VS UNDERWEIGHT AT BARCLAYS
*ELISA RAISED TO BUY AT NORDEA
*GALP ENERGIA RAISED TO OUTPERFORM VS NEUTRAL AT CREDIT SUISSE
*GEA GROUP RAISED TO BUY VS NEUTRAL AT CITI
*GRUPO AVAL RAISED TO NEUTRAL VS SELL AT CITI
*H&M RAISED TO NEUTRAL VS SELL AT GOLDMAN
*KRONES RAISED TO HOLD VS SELL AT BERENBERG
*NATIXIS RAISED TO OVERWEIGHT AT JPMORGAN
*NEXT RAISED TO NEUTRAL VS SELL AT GOLDMAN
*PUBLICIS RAISED TO OUTPERFORM AT EXANE BNP PARIBAS
*SEB RAISED TO BUY VS NEUTRAL AT UBS
*SIEMENS RAISED TO BUY VS HOLD AT LIBERUM
*STADA RAISED TO HOLD AT JEFFERIES
*UNICREDIT RAISED TO BUY VS HOLD AT HSBC
*ZURICH INSURANCE RAISED TO HOLD VS SELL AT SOCGEN; PT CHF 240

>>> Down
*DEUTSCHE BANK CUT TO UNDERWEIGHT AT SANTANDER
*SFR GROUP CUT TO HOLD VS BUY AT DEUTSCHE BANK
*SNAM CUT TO UNDERPERFORM AT MACQUARIE
*STANDARD CHARTERED CUT TO UNDERWEIGHT FROM NEUTRAL AT BARCLAYS
*SWEDBANK CUT TO NEUTRAL VS BUY AT UBS
*SYNGENTA CUT TO MARKET PERFORM AT BERNSTEIN
*TELEFONICA DEUTSCHLAND CUT TO UNDERPERFORM FROM OUTPERFORM AT EXANE

>>> PT Change


>>> Initiation
*COM HEM RATED NEW OUTPERFORM AT EXANE; PT SEK95
*DAVITA RATED NEW NEUTRAL AT CITI; PT $71
*ELISA RATED NEW NEUTRAL AT EXANE; PT EU33
*FRESENIUS RATED NEW BUY AT CITI; PT EU78
*FRESENIUS MEDICAL CARE RATED NEW BUY AT CITI; PT EU98
*MEDICLINIC RATED NEW BUY AT UBS; PT 1,170P
*PROTAGONIST THERAPEUTICS RATED NEW OVERWEIGHT AT BARCLAYS
*STRAUMANN RATED NEW SELL AT CITI; PT CHF314
*TELENOR RATED NEW UNDERPERFORM AT EXANE; PT NOK131
*YOOX NET-A-PORTER RATED NEW BUY AT BERENBERG; PT EU38

>>> Call
>> Stock
*BUZZI UNICEM ENTERS EUROPEAN RECOMMENDED PORTFOLIO AT BERNSTEIN
*MUNICH RE ADDED TO EUROPEAN RECOMMENDED PORTFOLIO AT BERNSTEIN
*PUBLICIS ADDED TO EUROPEAN RECOMMENDED PORTFOLIO AT BERNSTEIN
>> Sector
*EUROPEAN INSURANCE SECTOR RAISED FROM UNDERWEIGHT TO NEUTRAL AT BERNSTEIN

>>> JP Morgan analyst: PBOC may cut rates by 25bps as early as October

JP Morgan analyst: PBOC may cut rates by 25bps as early as October 
- Sees government having slight bias toward easing in H2 if growth surprises on downside
- Expects PBOC to maintain expansionary fiscal policy
- Tapering effect of policy, easing in real-estate investment, attempts to cut overcapacity, and lack of incentive for private investment could lead to slowdownin growth in 3Q and 4Q

WSJ : Volkswagen to Take 19.9% Stake in Navistar

Volkswagen to Take 19.9% Stake in Navistar

Volkswagen to pay about $16 a share for Navistar stake

Volkswagen AG is nearing an agreement to take a 19.9% stake in truck maker Navistar International Corp.
The companies plan to announce the deal Tuesday, which will come with two board seats for the German automaker, according to a person familiar with the matter.

Volkswagen will pay about $16 a share for the stake in Navistar. The Lisle, Ill., company’s stock closed Friday at $14.07, giving it a market value of about $1.2 billion. It has more than $5 billion of debt, according to S&P Capital IQ.

As part of the agreement, whose broad outline Reuters earlier reported, the companies will cooperate on procurement and new-product development, the person said.

The expected pact doesn’t give Volkswagen an explicit option to buy Navistar, which has been buffeted by a prolonged slump in market demand, though the stake could ultimately provide a stepping stone for a full takeover, the person added.


Navistar in June said it swung to a surprise profit in its latest quarter, its first since 2012 as the company slashed costs amid weak demand. The company also cut its outlook and said it was unlikely to make a full-year profit.

Navistar’s shares have ground steadily lower over the years, and were at more than $50 in 2011.

Volkswagen will not be the only big investor on Navistar’s share register. In 2013, the company agreed to let Carl Icahn and Mark Rachesky boost their stakes to 19.9% each. In exchange, the prominent investors said they would shelve any efforts to take control of the company. The agreement also enabled the investors to boost the number of board seats between them to four.