>>> US Gapping up

Gapping up
In reaction to strong earnings/guidance: UQM +13.9%, PLAY +5.8%, HQY+5%, LULU +2%

M&A news: HHS +15% (to explore strategic alternatives for its Trillium Software business)


Select metals/mining stocks trading higher: SSRI +7.3%, AG +5.3%, HMY+5.1%, IAG +5.1%, AU +4.6%, GFI +4.4%, SLW +3.4%, HL +3.4%, CLF +3.3%,ABX +2.9%, FCX +2.9%, NEM +2.9%, GOLD +2.8%, SLV +2.8%, GDX +2.7%, X+2.7%, BHP +2.6%, GG +2.5%, RIO +2.3%, AA +1.8%

Select oil/gas related names showing strength: CHK +3.4%, MRO +2.6%,WLL +2.5%, SDRL +2.4%, SDRL +2.4%, BP +1.5%

Other news: GEVO +110.5% (announces that the first two commercial flights using its renewable alcohol to jet fuel flew from Seattle to San Francisco and Washington), IMNP +52.8% (Immune Pharma and Hadasit jointly file patent for oral use of anti-eotaxin monoclonal antibodies), BEBE +41.2% (receives $35 million in connection with the formation of a JV w/ Bluestar Alliance), CERE +29% (in sympathey with peer GEVO), CAPN +17.3% (enters into exclusive 3-year distribution agreement with M/s Healthware Private for the sale of its CoSense End-Tidal Carbon Monoxide Monitor & Precision Sampling Sets in India), LC +5.9% (Former CEO Laplanche has held talks with banks about potentially financing an acquisiton of LendingClub, according to Reuters), PLUG +2.1% (partners w/ HyGear; to supply HyGear's hydrogen generation technology to its fuel cell customers globally), TGT+0.9% (raises quarterly dividend 7.1% to $0.60/share)

Analyst comments: AKS +7% (upgraded to Outperform at Credit Suisse),RDS.A +2.5% (upgraded to Buy from Hold at Evercore ISI), RP +1.3% (upgraded to Outperform from Market Perform at William Blair)

>>> Polycom receives USD 12.25 per share offer from private equity sponsor

Polycom receives USD 12.25 per share offer from private equity sponsor

Polycom [NASDAQ:PLCM], a California-based communications products and services provide, said in a regulatory filing that it has received a revised, non-binding proposal of USD 12.25 per share from the private equity sponsor described as “Sponsor 1”.

Canada-based Mitel (Nasdaq:MITL) (TSX:MNW) and Polycom in April entered into a definitive merger agreement in which Mitel would acquire all of the outstanding shares of Polycom common stock in a cash and stock transaction valued at approximately USD 1.96bn.

According to an earlier Bloomberg report, which cited unidentified individuals, "'Sponsor 1" is Siris Capital Group.

An excerpt from 8-K SEC filing follows:

On June 8, 2016, Polycom, Inc. (“Polycom”) announced that it has received a revised, non-binding proposal from a private equity sponsor that was previously described as “Sponsor 1” in the Registration Statement on Form S-4 filed by Mitel Networks Corporation (“Mitel”) with the Securities Exchange Commission on May 13, 2016. Under the terms of Sponsor 1’s revised proposal, Sponsor 1 would acquire 100% of the outstanding common stock of Polycom for an all-cash offer of USD 12.25 per share in a take-private transaction. Sponsor 1 indicated that the revised proposal would be funded, in part, with USD 650m of equity financing and USD 950m of debt financing. The revised proposal included a letter from a potential lender indicating that, subject to a number of conditions and contingencies, the potential lender was highly confident it could arrange the debt financing. Polycom continues to engage in discussions with Sponsor 1 with respect to the revised proposal.

Polycom’s board of directors, in consultation with its legal and financial advisors, will consider the outcome of its discussions or negotiations with Sponsor 1 to determine the course of action that is in the best interest of Polycom and its stockholders. There can be no assurance that discussions or negotiations will result in a binding proposal from Sponsor 1, that the Polycom board will determine that any such proposal is a “Company Superior Proposal” or that a transaction with Sponsor 1 will be approved or consummated on any particular terms or at all.

Polycom’s board of directors is not approving, endorsing, recommending or deeming advisable the proposal set forth in Sponsor 1’s offer and is not expressing any intent to do so. Polycom’s board has not changed its recommendation in support of Polycom’s merger with Mitel, and accordingly, Polycom’s board reaffirms its recommendation that Polycom’s stockholders vote in favor of the proposed merger with Mitel.


Source US Securities and Exchange Commission documents

>>> US Early premarket gappers

Early premarket gappers

Gapping up: GEVO +156.9%, CERE +44.5%, CAPN +17.3%, HHS +15%, UQM +13.9%, LC +6.8%, AKS +5.2%, AG +4.8%,HMY +4.6%, PLAY +4.6%, AU +4.2%, HQY +4%, GFI +3.4%, CHK +3.4%, FCX +3.2%, SLW +2.7%, ABX +2.6%, SDRL+2.4%, JCP +2.4%, SDRL +2.4%, GDX +2.3%, RDS.A +2.3%, GOLD +2.3%, GG +2.2%, IAG +2.2%, X +2%, WLL +1.9%,MRO +1.8%, BHP +1.6%, RIO +1.4%, BP +1.1%, AA +1.1%

Gapping down: PAY -29.2%, FLXN -13%, ASC -10.7%, OXM -6.3%, RMP -4.7%, DLTH -4.7%, VRNT -3.6%, SU -2.9%, FGP-2.8%, LULU -2.7%, DB -1.4%, ING -1.2%, RBS -1.2%, BCS -1%, PUK -0.9%, LYG -0.7%

>>> Vallourec +20% on the last 3 days - smaller player looking for M&A...

Tubos Reunidos is looking for acwuqistions in the Sector, could ba a signal to start to see more consolidation in a depress sector...
Tubos reunidos is only 110m mkt cap....so just a catalyst ans some read across on the sector....

{TRG SM Equity DES<GO>}


Merger Market

Tubos Reunidos studies acquisitions of tube factories - exec 

Tubos Reunidos [BME: TRG], the Spanish maker of seamless steel tubes, is interested in buying companies that specialize in finished tubular products, general manager Enrique Arriola said.

The company could study acquisitions in the US, particularly in Texas or Oklahoma, or in Asia, particularly in South Korea, India or Indonesia, Arriola said. Its main aim is to be close to its final clients, he said, adding that deals could come in the short or medium term.

Tubos Reunidos hit EUR 19.77m in EBITDA and EUR 352.4m in net revenues last year. It has a net financial debt of EUR 179.4m and EUR 22.5m in cash and cash equivalents at the end of the first quarter. It has a market capitalization of EUR 111.8m.

Many of the company’s clients are in the oil and gas industry. Although low oil prices have hurt investment levels in the sector, the price of potential targets has also fallen, the executive said.

Tubos Reunidos’ last deal was a joint venture (JV) with Marubeni-Itochu Tubulars Europe (MITE), the UK subsidiary of Marubeni-Itochu Steel, to build a new factory to manufacture, market and supply premium oil country tubular goods (OCTG) in 2014. The JV is 51% owned by Tubos Reunidos and 49% owned by MITE.

>>> Vallourec ??? Tubos Reunidos studies acquisitions of tube factories

Merger Market

Tubos Reunidos studies acquisitions of tube factories - exec 

Tubos Reunidos [BME: TRG], the Spanish maker of seamless steel tubes, is interested in buying companies that specialize in finished tubular products, general manager Enrique Arriola said.

The company could study acquisitions in the US, particularly in Texas or Oklahoma, or in Asia, particularly in South Korea, India or Indonesia, Arriola said. Its main aim is to be close to its final clients, he said, adding that deals could come in the short or medium term.

Tubos Reunidos hit EUR 19.77m in EBITDA and EUR 352.4m in net revenues last year. It has a net financial debt of EUR 179.4m and EUR 22.5m in cash and cash equivalents at the end of the first quarter. It has a market capitalization of EUR 111.8m.

Many of the company’s clients are in the oil and gas industry. Although low oil prices have hurt investment levels in the sector, the price of potential targets has also fallen, the executive said.

Tubos Reunidos’ last deal was a joint venture (JV) with Marubeni-Itochu Tubulars Europe (MITE), the UK subsidiary of Marubeni-Itochu Steel, to build a new factory to manufacture, market and supply premium oil country tubular goods (OCTG) in 2014. The JV is 51% owned by Tubos Reunidos and 49% owned by MITE.

>>> Micron - Delays closing of Inotera acquisition by ~ six months (MU 33% holde

Micron (MU) - Delays closing of Inotera acquisition by ~ six months (MU 33% holder) 
- MU announced an update regarding its effort to acquire the remaining interest in Inotera.
- While the acquisition was initially expected to close in mid-July 2016, the parties have concluded that closing the transaction on this timeframe is not possible. Micron expects to provide an update toward the latter part of calendar 2016.

>>> Street Pre-MArket Indications

ML
WORKSPACE - Strong. NAV 923p with trading profits +65% on rental growth.+1-2%
EDP - Small positive. Agreed to sale of EUR73mn tariff deficit of 2015....+1%
TOKMANNI - We INITIATE with Buy rating and PO EUR 8, c.20% upside.........+1%

UK MINERS - Copper/Gold +0.5%, IO fut +1% & RIO OZ -1.85%, FMG -3.5%......u/c
DOMINOS - Investing £24m in Viking territory. Trading remains inline......u/c
ILIAD - Spec may bid for Vimpelcom assets. Xavier Niel at BAML conf 2day..u/c
AIRBUS - May sell its remaining 24% Dassault stake; Platow Brief reports..u/c
WH SMITH - Group sales +2% with LfL sales flat. High st poor as exp.......u/c
SWISSCOM - Swisscom's Fastweb said to bid for Italian mobile assets.......u/c
IMPERIAL BRANDS - Investor Day. Headlines reit 10% absolute div increase..u/c

HAYS - UK staffing, weak report on jobs data. UK exposure c.33% of EBIT...-1%
MICHAEL PAGE - UK staffing under pressure on weak report on jobs data.....-1%
FENNER - CEO stepping down for health reasons. Search starts for new CEO..-1%
AO WORLD - Inline with EBITDA -£3.9m but FY rev looks like 7% topline d/g.-2%
AIR FR - Mixed May traffic stats with passengers +3.8%, load factor -80bps-2%
CLAS OHLSON - Poor. Q4 op loss of -126m v -117m & May sales -3% v +0.9%.-3-4%
INGENICO - Negative read from VeriFone warning and Q2 miss (-28% aft hr)-5-7%

CS
Air France -1-2% Traffic stats inline but comments around pricing weaker
Ao World +1% FY revs small ahead, EBITDA loss of 3.9mln vs cons -4.1mln
BAE Systems M/P Engines unable to operate continuously in the warm waters
Boohoo M/P Q1 Revs slightly ahead, guidance better
Dominos Pizza UNCH Trading inline, invests in Scandinavia
Erste Bank -5% Uniqa foundation sells 17.4m shares at 22.5 Euros
Fagron +0.5% Board Member Balcaen Buys Additional EU0.56m shares
Heidel Druck +2% FY results already known, sales growth guidance better
IMB M/P Investor day inline, reaffirms mid-term dividend growth
Ingenico -5% US peer VERIFONE traded -25% after hours on poor guidance
Lufthansa -1% Peer Air France talking negatively around pricing
Miners UNCH Copper +0.50%, Brent +0.70%, Iron Ore +1.25%, China -0.52%
Rolls Royce -1% Engines unable to operate continuously in the warm waters
Sainsbury +1-2% LFL -0.8% vs consensus -1.7%
Siemens R To supply 50 megawatts of turbines for Japan wind farm
WH Smith M/P No's inline, confident in FY outcome

MainFirst Pre Mkt Indications
*ROCHE-Gets EU Approval of Avastin in combo with Tarceva............+0.5%
*AIR FRANCE-May passengers 8.3m,Load Factor -1.8%...................U/C
*ORANGE-Not planning French Consolidation in short term.............U/C
*SWISSCOM-Fastweb & Iliad said to bid for Italian mobile assets.....-0.5%
*ERSTE BK-Uniqa Foundation to sell about 17.4m shares at €22.5......-5%
*CONTI-Plans to acquire a 42.1% stake in Kumho Tire-Korea Daily.....U/C
*INGENICO-Read across from Verifone cites EM & China p/pressure.....-4%
*LHA-DOJ poss investigation into comments over surcharges from CEO..U/C
*WACKER CHEMIE-CFO says polysilicon prices past inflection point....+1%
*H/DRUCK-FY known,med term sales 3b(2.84),Ebitda margin 7-10%(7.8)..+1%
*SAINSBURY-Sales Ex-Fuel -0.8%(-0.5),Mkt conditions remain tough....+2%
*OCADO-Read across from Amazon Fresh Delevery Service(not new)......-1%