>>> Neptune Oil confirms interest in Shell’s North Sea assets

Neptune Oil confirms interest in Shell’s North Sea assets - Daily Telegraph

Royal Dutch Shell (LON:RDSA)’s North Sea assets are being eyed for investment by Neptune Oil and Gas, a Neptune spokesperson confirmed in The Daily Telegraph. The representative said the North Sea assets are being examined as part of Neptune’s general investment strategy.

Neptune, a fund set up to target distressed assets last year by Sam Laidlaw, ex-chief executive officer of Centrica, is believed to have entered discussions on the matter with Shell’s adviser Bank of America Merrill Lynch, the report said.

Lazard was also recently revealed to have been hired by Shell as adviser on a potential USD 30bn asset disposal programme over the three years to come, the item noted.

Daily Telegraph

>>> Premier Foods CEO open to talks with McCormick at right price; pension contr

Premier Foods CEO open to talks with McCormick at right price; pension contribution could be too much for McCormick 

Premier Foods [LON:PFD] Chief Executive Gavin Darby said he would be willing to enter into takeover negotiations with McCormick & Company, Inc. [NYSE: MKC] should it return with an offer closer to what the listed UK-based food company considers its own valuation, The Sunday Times reported. Darby said he would be willing to enter talks with McCormick or other parties despite Premier’s rejection of two previous bid approaches from Sparks, Maryland-based McCormick, if the price and conditions were right.

The report went on to cite unspecified sources who said McCormick wants to transact a takeover of Premier Foods as a “friendly” offer.

As previously reported, some of Premier Foods’ institutional shareholders have criticised the company’s board for what they perceive as favourable treatment of Japanese counterpart Nissin Food Holdings Co., Ltd, which last week acquired a 17.3% stake in Premier Foods from the private equity firm Warburg Pincus.

Darby said Nissin’s acquisition of a stake was not intended as a defence against McCormick’s bid, the item continued. However, Nissin’s stake will probably complicate any takeover discussions, the article added.

Separately, a Mail on Sunday report said contributions to Premier Foods’ pension scheme could prove too much for McCormick. Premier needs to pay GBP 185m (EUR 234m) into the scheme over the coming four years, the item said, noting that the contribution has risen from GBP 6m to over GBP 40m.

A Sunday Telegraph report cited sources close to McCormick, who argued that the Maryland-based group would be better placed financially to ensure future payments. Premier Foods cited McCormick’s offer’s “conditionality” as one reason for its rejection of McCormick’s 60p per share takeover bid. It is thought that the board was worried about McCormick fulfilling its commitments to the pension scheme, according to the newspaper.

Premier Foods’ share price stood at 52p at the close of trading in London on Friday, 25 March, giving the company a market capitalisation of GBP 429m.

>>> Asian Update

Asian Market Update: China industrial profits recover to start 2016; Japan cabinet again denies press rumors of delay to sales tax hike


***Economic Data***
- (CN) CHINA JAN-FEB INDUSTRIAL PROFITS Y/Y: +4.8% (first rise after 7 straight declines) V -4.7% IN DEC AND -2.3% IN 2015

***Index Snapshot (as of 03:30 GMT)***
- Nikkei225 +0.8%, S&P/ASX closed, Kospi +0.1%, Shanghai Composite +0.5%, Hang Seng closed, Jun S&P500 +0.3% at 2,035

***Commodities/Fixed Income***
- Apr gold -0.9% at $1,213/oz, May crude oil +0.8% at $39.79/brl, May copper +0.1% at $2.24/lb
- (CN) PBOC to inject CNY35B in 7-day reverse repos
- USD/CNY: (CN) PBOC SETS YUAN MID POINT AT 6.5232 V 6.5223 PRIOR; weakest setting since Mar 4th
- (JP) BOJ offers to buy ¥450B in 5-10yr JGBs and ¥40B in JGBs outright

***Market Focal Points/FX***
- Asian equity markets sprung right back into rally mode with steady gains, even though participation was still limited by the Easter holiday that kept Australia and Hong Kong traders away. Nikkei225 led the rally with nearly a 1% rise as USD/JPY rose over 60pips to 113.60 on the heels of more bullish comments from Fed's Bullard calling April and June meetings as "live" events for potentially more tightening. Shanghai Composite benefited from improving industrial profits data and more upbeat China Beige Book. In other FX majors, EUR/USD traded in a 15pip range above 1.1150, AUD/USD rose about 20pips from the lows toward 0.7520, and NZD/USD was also up about 20pips above 0.6680.

- China Industrial Profits for Jan-Feb - spread out due to the seasonality around Lunar New Year - showed their first rise after 7 straight months of decline. China Stats Bureau noted "increased sales and a milder decline in factory product prices", while a NBS researcher remarked that revenues of industrial companies expanded 1% in the first two months thanks to improved demand. China Beige Book, released over the weekend, also pointed to improving profits in Q1, but also noted declining staffing, as quarterly Capex hit a 5-year low and 33% of companies reduced their investments. Beige Book report further noted payrolls growth by private companies was at a 4-year low. Helping sentiment was a report in Chinese press that the state pension fund will begin to invest in A-share market this year with estimated flows of about CNY600B. The timing outline for the announcement follows recent State Council decision to allow up to 30% of Pension Fund assets to be invested in equities. Also of note, China lockup shares expected to be released into the market this week was down to just over CNY25B from over CNY100B last week.

- In Japan, there was more speculation that PM Abe will announce a delay to the 2nd round of sales tax increase from 8% to 10% slated for Apr '17 to respond to weaker economic climate. Cabinet spokesperson Suga has once again denied those rumors, even though last week he conceded this was something the govt could consider if corporate revenues contract. There is also political pressure in this decision, with a separate survey estimating 61% of respondents opposed to 2nd round of consumption tax hike, up from 58% opposed in Feb.

***Equities***
Notable movers by sector:
- Consumer discretionary: Wuliangye Yibin Co 000858.CN +4.0% (FY15 result)
- Technology: NTT Data Corp. 9613.JP +0.9% (transaction with Dell); Sharp Corp 6753.JP +4.0% (speculation on deal with Hon Hai)
- Healthcare: Zhejiang Hangzhou Xinfu Pharmaceutical Co 002019.CN +1.9% (guidance)
- Utilities: Tokyo Electric Power Co 9501.JP +1.7% (plans to close all oil-fired power plants)

>>> What to look at this (long) Weekk End - 25th, 26th & 27th of

Weekly Performance
Dow +0.20% S&P-0.23% Nasdaq-0.03% Russell-1.07% Nikkei +0.39% Hang Seng-0.77%% Shanghai +0.82% Brazil -2.47% EuroStoxx -1.85% Dax -0.41% CAC-2.55% Ibex-2.10% FTSE -1.53% MIB -2.38% SMI -1.10%
Global equity markets broke a month-long advance this week, as another leg down in energy prices and further gyrations in emerging markets impeded risk appetite. Risk was further constrained by the twin Brussels bombings, which killed scores, wounded hundreds and showed a Europe gravely exposed to Daesh terrorism. The continuing recovery in crude prices peaked again midweek as both Brent and WTI bumped up againt $43 or so and then headed lower, dragging down the energy sector and rekindling fears about bank exposure to bad energy debt. There were faint green shoots in a few March manufacturing reports, but the preponderance of economic data showed a global economy mired in slowdown. At the same time, Fed speakers continued to talk about two or three Fed rate hikes this year, causing markets to reconsider risk tolerance in the face of global monetary policy divergence. For the week, the DJIA lost 0.7%, the S&P500 dropped 0.7%, and the Nasdaq slipped 0.5%.


Macro :
Dijsselbloem Says ECB Actions Unusual Because of Unusual Times
Bond Rally Seen on Collision Course With Inflation as Fed Punts
Behind U.S. GDP Data Is Reason for Recession Worry: Weak Profits

Keep an eye on :
- BMPS IM : Paschi Denies Press Report on ECB Request for Capital Increase
- BMPS IM : Monte Paschi Said to Seek Buyers for EU200m of Secured Bad Loans
- CABK SM : Santoro’s Silva Says Co. Willing to Restart Talks with CaixaBank
- CRG IM : Apollo Bids for Carige Bad Loans, May Add Capital: Messaggero
- CRG IM : Banca Carige may sell 52%-59% stake to Apollo if non-binding offer accepted - Messaggero
- CNHI IM : CNH Industrial Sees ~$500m Charge Related to Probe of Unit
- DB1 GY : Deutsche Boerse, LSE Mull Using Dutch Legal Entity: Telegraph
- EDF FP : EDF Confirms Goal to Start Flamanville Reactor in 4Q 2018
- EDF FP : EDF Would Shoulder CGN Share of Hinkley Point Cost Overruns: JDD
- ENI IM : Eni Declines Comment on WSJ Report of Exxon Mozambique Interest - http://on.wsj.com/1RAWKTa
- GBB FP : Bourbon Says Two Crew Members Abducted in Nigeria Freed
- OMG LN : Old Mutual’s wealth management unit could see joint bid from Bain and Carlyle, Advent also interested - Sunday Times
- PST IM : Italy Weighing Sale of Second Stake in Poste This Year: Ansa
- PFD LN : John Paulson urges Premier Foods to engage - FT - http://on.ft.com/1UpqQQA
- RENFE IPO : Renfe Exec Says Train Operator Should Be Publicly Listed: FT
- CFR VX : Chopard Co-President Sees Consumer Caution in Some Regions: SZ
- RWE GY : RWE Plans to Cut 2,000 Jobs by 2018, Says HR Officer Tigges: WAZ
- SAF FP : Safran Said to Evaluate Security Division Sale: Les Echos
- SAP GY : SAP Extends Contracts of CEO, CFO, Sales Chief to 2021: Reuters
- SRG IM : Thyssengas may receive bid from Snam - Il Sole 24 Ore
- SN/ LN : Zimmer Biomet Says Deferred Prosecution Agreement Ongoing
- SOF BB : Sofina Net Asset Value Climbs 12% in 2015; Dividend Tops Est.
- SPIE FP : Spie Gets EU30m Investment From La Caisse
- SYNN VX : Syngenta Says ChemChina Deal Poses No Food Safety Risks: WSJ
- URKA LI : Acron Said to Have Sold Uralkali Stake, Interfax Reports
- VIE FP : Veolia Sold EU700m of Convertibles by Private Placement: Gide
- VIV FP : Canal+ to Pay beIN Sports More Than EU1.5B, BFM Business Says
- VOW3 GY : Volkswagen, Porsche Recall More Than 800,000 SUVs on Pedal Issue
- VOW3 GY : VW Superv’y Board Considers New Strategy Committee, dpa-AFX Says
- VOW3 GY : VW CEO Loses Fight to Restore Hatz to Post After Scandal: BamS
- YHOO US : Microsoft Said to Mull Backing Potential Yahoo Buyers: Re/Code - http://on.recode.net/1Sl6pjT

>>> Banca Carige may sell 52%-59% stake to Apollo if non-binding offer accepted

Banca Carige may sell 52%-59% stake to Apollo if non-binding offer accepted 

Banca Carige, the listed Italian lender, would sell a stake of 52%-59% to private equity firm Apollo if it accepts the fund's non-binding offer, Italian language daily Il Messaggero reported. The unsourced report said that Apollo would receive the stake through a EUR 550m capital increase.

The report added that Apollo would then launch a public offer, as required by Italian law.

Apollo is understood to have informed the European Central Bank (ECB) about the bid, according to the report.

The report said that Apollo is also offering to acquire a EUR 3.5bn non-performing loan portfolio for EUR 695m. The report said that it was unclear whether the NPL offer was separate or connected to the bid for a stake in Carige.

The item added that Apollo's offer is a revised bid, with the first offer being made in February. In the first offer Apollo was only offering to buy an NPL portfolio of EUR 3bn, the report added.

Il Messaggero

>>> Bombardier could spin off CSeries project if Ottawa follows Quebec's lead by

Bombardier could spin off CSeries project if Ottawa follows Quebec's lead by offering USD 1bn in financial aid 

Bombardier may spin off its CSeries jet project into a separate entity if Ottawa joins Quebec by offering the Montreal, Quebec-based plane and train maker USD 1bn in financial aid, reported The National Post on 26 March.

Scotiabank analyst Turan Quettawala said in an item cited in the newspaper's Financial Post section that Bombardier, if the Government of Canada follows the Government of Quebec's lead by providing the company with financial assistance, may spin off the CSeries jet program and divvy it up equally among the company, Ottawa and Quebec.

National Post

>>> Chopard not for sale despite offers - Sonntagszeitung

Chopard not for sale despite offers 

Chopard, the privately-owned Swiss watch and luxury goods manufacturer, is not for sale, Sonntagszeitung reported. At the end of a wide-ranging interview Chopard co-CEO Caroline Scheufele told the Swiss weekly she still receives offers but she would not gain much freedom or flexibility if she sold.
Sonntagszeitung

>>> Thyssengas may receive bid from Snam - Il Sole 24 Ore

Thyssengas may receive bid from Snam 

Snam [SRG:IM], the Italian gas distributor, could make a bid for Macquarie-owned German gas utility, Thyssengas, Italian language daily Il Sole 24 Ore reported.

The article cited financial rumours claiming that Snam could join the auction for the utility.

The report said that probable high levels of competition are likely to make Snam an outsider in the bid, as the asset is likely to become too expensive. Snam also has other European targets available, it added.

The item noted bidders are believed to include infrastructure funds First State Investments and Borealis Infrastructure, as well as industrial bidders such as Luxembourg-based Enovos International, Belgian utility group Fluxys and German utilities.

The report said that non-binding offers are expected at the beginning of April.

Thyssengas could be worth EUR 500m-EUR 550m inclusive of debt, it added.

Il Sole 24 Ore

>>> Old Mutual’s wealth management unit could see joint bid from Bain and Carlyl

Old Mutual’s wealth management unit could see joint bid from Bain and Carlyle, Advent also interested 

Old Mutual could receive a joint offer for its wealth management business from the private equity firms Bain Capital and The Carlyle Group, The Sunday Times reported.

The newspaper cited City sources for the information.

Rival buyout group Advent International is also thinking about tabling an offer for Old Mutual’s wealth management unit, the item said. As previously reported, the FTSE-100 bank’s CEO, Bruce Hemphill, this month outlined plans to divide the group into four entities, one of which is the wealth management business. The report mentioned a valuation of GBP 4.5bn (EUR 5.69bn) for the wealth management operations, but did not attribute the figure.

The private equity groups Warburg Pincus and Cinven have already tabled offers for the wealth unit, the item said.

A “knockout offer” for the UK wealth management arm before 2018 would be considered by Old Mutual, although the bank could also spin the unit off via a listing, the article continued, citing banking sources.

Old Mutual is advised by the investment bank Rothschild, the report said.

Sunday Times