TheChek News Flow

CS
BAE Systems M/P UK commits £372m for continued support of Hawk aircraft
Faurecia -1-2% Faces class-actions in US on alleged anti-comp practices
Lindt +1% Expects higher sales of chocolate this Easter
Lundbeck -5-7% FDA limits label disclosure: Brintellix, anti-depression
Miners M/P Copper +0.30%, Brent -0.40%, Iron Ore -3.75%, China -1.10%
Partners Grp M/P Exploring a sale of Strategic Partners, Bloomberg
Peugeot -1-2% Neg read from Faurecia and Les Echos story on CEO's pay
Schoeller +1% Seeks AGM approval for buyback of 10% of shares
Unibail +1% Completes sale of office building for EU270.8m
Volkswagen -1% May suspend dividend, DPA reports

MainFirst Pre Mkt Indications
*VW-May suspend Dividend reports DPA,Est €1.50 Prf & €0.50 Ords........-1%
*PEUGEOT-CEO Tavares has pay contested by Govt says Les Echos..........-0.5%
*LAFARGE-To announce more asset sales,exps grth in emerging mkts.......+0.5%
*LUFTHANSA-Mulls cutting 2,100 aircraft Servicing jobs-Spiegel.........+0.5%
*LINDT & SPRUENGLI-Est's higher sales of Chocolate this Easter.........+0.5%
*ASTRA-Japan approves Tagrisso for patient treatment...................+0.5%
*UBS-To quit Banking Ops in Soth Korea says Yonhap Infomax.............U/C
*PARTNERS GRP-Avista Cap Partners plan to sale of Strategic Partners...+0.5%
*FAURECIA-Faces class actions in US,anti-competitive practices.........-1%
*DEUT POST-Amazon to set up 2 hr delivery sewrvice in Berlin...........-0.25%
*SAFRAN-Hires Banks to review Security Division sale-Les Echos(known)..U/C
*HAPAG LLOYD-Needs acq's or merger to compete(TUI owns 10.6%)..........-0.5%

Investec
* BOLLORE-FY ebitda and dividend in line, net miss.......................-0.5%
* ENI-talks with Exxon over sale of stake in Mozambique gas project(WSJ)...U/C
* FAURECIA-faces class action lawsuit in US over exhausts................-1.5%
* FERRAGAMO-designer Giornetti to leave(WWD)...............................-1%
* JC DECAUX-renews SNCF contract for 8 years...............................+1%
* NEOPOST-results due after close
* PERNOD-told us it sees no material China tax rise impact (-4% Thurs)...+1.5%
* POSTE ITALIANE-Govt considers cutting stake to 35% from 64.7% (Sole).....-2%
* SAFRAN-appoints advisers over security unit sale (Ecchos)...old story....U/C
* SAP-renews CEO,CFO,Sales Chief get contract extensions to 2021(Reuters)..U/C
* VW-may suspend dividend (DPA)............................................-2%

* AG BARR-FY.#'s in line.To play active roll in Sugar levy consultation.....+1%
* AMERISUR-Update. Reserves upgrade(mkt had factored in D/G).............+7-10%
* ASTRA ZENECA-Targisso aprroved in Japan. Sanofi poaches scientist........+1/2%
* CHEMRING-Wins large US DoD umbrella contract(Headline yday)Fcast unch.....+2%
* DARTY-FNAC seeks financing for new DARTY bid (LES ECHOS)..................+1%
* GREENE KING-may sell Loch Fyne restaurant chain for £100m (Times).........+2%
* LSE/DB1.Deutsche Boerse, LSE Mull Using Dutch Legal Entity(Telegraph)....unch
* PREMIER FOODS-Pension issues may be too much for McCormick(MoS)..........unch
* ROYAL DUTCH-Sounding out buyers for North Sea Ops(S.Times)...............+1/2%
* VODAFONE-Demanding £b's from Hutchinson over its t/o of O2(STelegraph)...+1/2%
* WILMINGTON-Acquires Evantage Consulting(£1.4m)...........................unch

ARM/IMG +1% CNBC reports 3.4m pre-orders from China for iPhone SE

BMW/DAI +2% Positive China factory Utilisation, BRILLIANCE +6%, BYD +4%

EDF -1% Journal Dimance saying EDF may have higher HINKLEY cost than HPC

FAROE PET.-2% FY earnings light on YE15 write offs and FY16 expenses.

FAURECIA -2% Faces class actions in suS over exhaust system pricing POLYMETAL +1% FY earnings inline with exp., dividend announced @ 13c VODAFONE +1% S.Tel - demanding £blns from HUTCHINSON to drop takeover oppo.

VW -1% May suspend dividend, DPA cites board members - China +'ve above

Premier Foods [LON:PFD] Chief Executive Gavin Darby has defended the decision of the UK-based food company’s board to reject a takeover offer from Sparks, Maryland-based counterpart McCormick & Company [NYSE:MKC], The Daily Telegraph reported. Darby rejected suggestions that Premier’s board did not discuss McCormick’s 60p per share offer properly, the article said, noting criticism of the board by some of Premier’s institutional shareholders last week.

Darby said the chairmen of Premier Foods and McCormick had met once within the past six weeks, held four substantial conversations via telephone and had exchanged several letters and emails.

The CEO added that there remains plenty of time for a rival bidder to come forward.

Premier will try to persuade investors this week that it took the correct course, the article said. Darby will present the strategy for accelerated growth the item said. The CEO said the strategy had been a factor in convincing the Premier board that 60p per share was a significant undervaluation, according to the report.

As reported last week, the Japanese food company Nissin acquired a 17% stake in Premier Foods from the buyout group Warburg Pincus a day after Premier rejected McCormick’s offer.

McCormick has indicated that it may be prepared to increase its offer, but only if it gains access to Premier Foods’ books and information about the company’s pension liabilities, the item noted.

The article went on to cite City sources who thought that McCormick might be looking to keep liability for the Premier Foods pension scheme’s GBP 390m (EUR 496m) deficit off its books. However, UK pension law might make such a move impossible, thereby proving an obstacle to a deal, the report said.

Premier Foods’ share price stood at 52p at the close of trading on Thursday, 24 March, giving the company a market capitalisation of GBP 429m.

Daily Telegraph

US Market closed almost flat on a quiet day as Europe was closed for Easter. volume was well below average at 688mil shares. Four sectors ended beneath their flat lines with energy (-0.5%), utilities (-0.4%), technology (-0.3%), and health care (-0.3%) leading to the downside. Meanwhile, consumer discretionary (+0.5%), consumer staples (+0.5%), materials (+0.4%), and financials (+0.3%) outperformed. Lodging names outperformed in the consumer discretionary space following reports that HOT received a revised non-binding offer from the Chinese consortium headed by Anbang Insurance Group. Elsewhere, TWX rallied 3.6% following the release of ‘Batman v Superman: Dawn of Justice', which resulted in the third largest global opening for a March release in IMAX theaters. Elsewhere in the Transportation Average, (VA 37.70, +3.53). US After Hours SNX -8%, ICON -4% following earnings MDVN -3.3% following drug pricing pressures, ALXA -49.7% (believes sufficient capital resources until the end of April 2016), CNL: Louisiana Public Service Commission votes to grant a new hearing on proposed Macquarie merger (3-2 vote); +12.8% afterhours. Asian equity markets are mixed, tracking the uncertainty on display in US hours, as investors pause the latest wave of buying to process the recent GDP report and also tune in to Fed Chair Yellen's speech at the Economic Club of New York luncheon on Tuesday. Recall US put out its final Q4 GDP data when the markets were closed on Friday, and even though the data were revised higher, a closer look at the numbers revealed declining profitability of companies along with more leverage in consumption. Monday's US release of personal spending figures were also lukewarm, prompting Atlanta Fed GDPNow model to cut expectations for US Q1 growth to 0.6% from 1.4%. High-profile fixed income manager Gundlach later remarked that after this revision, it would be "inconceivable" for the Fed to hike rates next month. In Asian trading, Australia and Shanghai are leading the key indices to the downside with lower commodity prices and tighter mortgage polices respectively weighing on those markets. Economic data - primarily out of Japan - was similarly mixed. Retail sales underperformed vs expectations while overall household spending grew y/y for the first time in 6 monthsVirgin American (JBLU 20.79, +0.55) spiked after reports indicated that the company put in a bid for JetBlue

Nikkei -0.24% Hang Seng -0.04% Shanghai -1.06%

EUr$ 1.1187 CNH 6.5164 CNY 6.5102 JPY 113.60 GBP 1.4228 CHF 0.9745 RUB$ 68.5442 WTI$39.09(-0.76%)

S&P+0.17% EuroStoxx +0.58% Dax +0.49% SMI +0.50%

Macro :

Central Banks Not Helping With Economic Recovery: Yale’s Roach

AllianceBernstein Hires Golub’s Posner to Bet on Energy Distress

Oil Enthusiasts Stay Out of Rally Led by Shrinking Bearish Bets

Millennium Said to Recruit Credit Suisse’s Jain for Co-CIO Role

Luxor Capital Won’t Return All Investors’ Cash on Exit: Reuters

Resilient Euro Is Headwind for Euro Zone Earnings, JPM says

Keep an eye on :

- MT NA : Brazil Steel Institute: 2016 Brazil steel production seen down 1% to 32.9M tonnes, sales down 4.1% to 17.4M tonnes - Expects about 11K layoffs in the steel industry in 1H 2016

- BCP PL : Banco Comercial Portugues Plans 1-for-193 Reverse Split

- BMW GY : Brilliance +6.59% in HK

- BOTHE BB : Bone Therapeutics 2015 Loss 14.09 Mln vs EU5.81 Mln

- EN FP : Bouygues Calls Board Meeting for Wednesday, Les Echos Says

- DPW GY : Major Kuehne + Nagel shareholder Klaus-Michael Kuehne: Not interested in buying DPW's freight forwarding operations - German press

- EBR US : Eletrobras Hires Credit Suisse to Sell Renewable Assets: Reuters

- ENI IM : Algeria Denies Sonatrach Offers Direct Stakes in Oil Fields: APS

- EO FP : Faurecia Faces Class Actions in the US Over Exhaust Supply

- FNAC FP : Fnac Seeks Financing for New Darty Bid, Les Echos Says

- FL US : Foot Locker to Join S&P 500; DCT Industrial to Join MidCap Index

- GLEN LN : +2% in HK

- NOVOB DC : Novo Nordisk Says New U.S. Plant to Be Fully Operational by 2020

- UG FP : Peugeot Citroen CEO Tavares Pay Contested by Govt.: Les Echos

- SAN FP Sanofi Says Yong-Jun Liu Becomes Head of Research April 1

- SHP LN : Shire Wins Court Ruling to Block Allergan’s Copy of Lialda

- TKA GY : German Metalworking Companies Mull Wage Offer to Unions: FAZ

- UBSN VX : UBS to Quit Banking Operations in S. Korea, Yonhap Infomax Says

- VOW3 GY : Volkswagen May Suspend Dividend Amid Emissions Scandal: dpa-AFX

- YHOO US : Yahoo Said to Set April 11 Deadline for Preliminary Bids: WSJ

*ASHFORD HOSPITALITY PRIME UPGRADED TO NEUTRAL AT ROBERT BAIRD

*CEGEDIM RAISED TO BUY VS HOLD AT KEPLER CHEUVREUX

*CIELO RAISED TO NEUTRAL VS SELL AT GOLDMAN

*KUKA RAISED TO HOLD AT KEPLER CHEUVREUX

*STRATEC BIOMEDICAL RAISED TO BUY VS HOLD AT HSBC

*PRUDENTIAL EXITS HSBC EUROPE SUPER 10 PORTFOLIO

Il ne reste plus que trois jours à Orange pour annoncer le rachat de Bouygues Telecom, ou l’échec de l’opération.Selon nos informations, Bouygues a convoqué un conseil d’administration mercredi.

«J» – 3. Le compte à rebours a commencé pour Orange qui a prévu d’annoncer le rachat de Bouygues Telecom - ou pas - avant la fin du mois de mars. Face à cette échéance, il n’y a pas eu de trêve pascale : les négociations ont continué pendant tout le week-end, qui avait la bonne idée de durer trois jours... Les états-major des quatre opérateurs, accompagnés de bataillons de juristes, étaient réunis chez un grand cabinet d’avocats parisien. « On est tous enfermé depuis mercredi. Certains ne rentrent même pas chez eux le soir », raconte un dirigeant, qui assure comme beaucoup d’autres que « rien n’est encore joué ». Les discussions semblent néanmoins avancer dans le bon sens. Selon nos informations, Bouygues a même convoqué un conseil d’administration mercredi, ce qui signifie que les travaux sont en phase d’atterrissage et qu’un accord serait imminent. Lors de ce conseil, Bouygues devra dire si oui ou non, il est d’accord pour vendre sa filiale télécoms à Orange.

Plusieurs points restent à régler d’ici là. Les discussions sur les prises de participation respectives de l’Etat et Bouygues au capital d’Orange ne sont pas finalisées. L’Etat, qui a 23%, veut rester au-dessus de 20%, et Martin Bouygues a dit qu’il voulait entre 10% et 15% du capital. D’après BFM Business, il obtiendrait 12%. Une partie de la transaction est en effet réglée en actions Orange, ce qui permet à Bouygues d’entrer au capital de l’opérateur. Reste à se mettre d’accord sur la valeur des actions. « La question, c’est quel prix donner à l’action Orange ? Celui du cours de bourse actuel, la valeur moyenne des derniers mois ou au-dessus ?, s’interroge un banquier. Plus l’Etat vendra l’action chère, moins il sera dilué. Le débat est là et en fin de semaine dernière les écarts de prix étaient réels.»

Patrick Drahi signerait un chèque de près de 4 milliards

Une fois qu’il aura racheté Bouygues Telecom, Orange va être obligé de vendre des actifs à Free et SFR. D’abord parce qu’il n’en a pas besoin. Ensuite et surtout, parce que c’est nécessaire pour obtenir le feu vert de l’Autorité de la concurrence, laquelle ne veut pas voir Orange se renforcer. Free reprendrait une bonne part du réseau, des fréquences et aussi des boutiques. De son côté, SFR récupérerait des clients mobiles, fixes et entreprises et, aussi, selon nos informations, bien plus de fréquences que ce qui était prévu au départ. L’opérateur de Patrick Drahi signerait un chèque avoisinant les 4 milliards . Orange, Free et SFR se partageraient les clients fixes.

Ces trois derniers jours, les discussions ont surtout tourné autour de la répartition des salariés de Bouygues Telecom. Il serait prévu que SFR en récupère entre 1.000 et 1.500. Et Free un peu plus de 2.000, qui proviendraient essentiellement des boutiques, et pas du réseau. A eux deux, ils s’offriraient donc la moitié des employés de Bouygues Telecom, l’autre moitié serait conservée par Orange. Cependant, Free n’en voudrait pas tant et négocierait à la baisse. Ces chiffres peuvent donc encore bouger.

L’Autorité de la concurrence au centre de tous les regards

L’ironie de l’histoire, c’est que c’est Orange qui va prendre la plus petite part du gâteau (c’est-à-dire des clients fixes et des salariés), alors que c’est lui qui rachète Bouygues Telecom. Et SFR qui aura la plus grosse, alors qu’ il avait échoué à racheter Bouygues Telecom en direct, en juin dernier !

Les risques liés à l’opération seraient partagés entre les quatre acteurs, chacun prenant sa part. La vraie inconnue, si l ’opération se fait, reste la décision de l’Autorité de la concurrence. Chacun sait que son président Bruno Lasserre ne laissera pas passer l’affaire comme une lettre à la Poste. Mais les protagonistes veulent croire qu’il ne touchera pas aux fondamentaux de l’accord. Faute de quoi, cela pourrait provoquer des désaccords entre opérateurs et mettre en péril l’opération.