>>> Bang & Olufsen potential bidder Sparkle Roll Group wishes to offer DKK 85 pe

Bang & Olufsen potential bidder Sparkle Roll Group wishes to offer DKK 85 per share
Sparkle Roll Group, the Hong Kong-based luxury goods dealer, wants to acquire Bang & Olufsen, the Danish electronics company, for DKK 85 (EUR 11.4) per share, according to Berlingske Tidende. This is after yesterday's announcement that Sparkle Roll is in talks with B&O with an intent to make an offer.

The Danish daily reported, citing unnamed sources, that Sparkle Roll wishes to pay DKK 85 per share which corresponds to a total price of DKK 3.6bn (EUR 483m). The paper wrote however that this is price will likely be too low for B&O to accept due to its low premium compared to the company's current share price of DKK 70 (EUR 9.4) per share.

The item also noted that the company has mandated Danske Bank to advise.

Neither B&O's chairman Ole Andersen nor managing director Tue Mantoni wished to comment.

Berlingske Tidende

>>> Pirelli in talks with QIA to sell 15% stake – report (translated)

Pirelli in talks with QIA to sell 15% stake 

Pirelli [BIT:PC], the Italian tyre maker, is in advanced talks with the Qatar Investment Authority (QIA) to sell a 15% stake, Italian language daily La Repubblica reported.

The unsourced report said that Pirelli in talks with various parties, but that negotiations were most advanced with the QIA.

The report said that the vendor is the controlling shareholder ChemChina.

The aim is to sell the stake by mid-April, according to a previous report.

Pirelli has a market cap of EUR 4.643bn.

La Repubblica

>>> What to look at today - 23rd of March 2016

Dow-0.23% S&P-0.09% Nasdaq+0.27% Russell-0.11%
US Market closed mixed helped by rebound in healthcare and tech. outweighed the initial selling pressure following news of a terrorist attack in Brussels. energy sector (-0.3%) was able to avoid larger losses despite a downturn in oil. WTI crude ended its day lower by 0.3% at $41.45/bbl after reports indicated that Libya will not take part in a proposed supply cut between OPEC and non-OPEC countries. volume were on the light side again with 819mil shares. US After Hours. NKE -6%, RHT -3.6%, KKD -6% following earnings. Asian equity markets are slightly lower after a mixed session overnight, China Premier Li said the economy will rely on reform to achieve 6.5-7.0% GDP target range, calling for greater cooperation in developing new energy vehicles. On the flip side, China Securities Regulator had reportedly compiled a list of 30-40 Shanghai Exchange listed troubled companies for potential delisting and started talks with local officials to push toward exclusion from the exchanges. BOJ Gov Kuroda chimed in on the debate about sales tax hikes, stating the 2nd round will have a small impact on the economy while also reiterating CPI will reach 2% in H1 of FY17. Philadelphia Fed's Harker, who is not known for sharing his views frequently, revealed himself as one of the more hawkish "dots" on the Policy Board. Harker said he was not the "two dot" official - the median view from the latest FOMC meeting suggesting 2 more rate hikes this year - adding he would like to see at least 3 policy tightening moves given the strong case to continue raising rates.

Nikkei -0.28% Hang Seng -0.61% Shanghai +0.23%

Eur$ 1.1197 CNH 6.4992 CNY 6.4961 JPY 112.34 GBP 1.4177 CHF 0.9750 RUB$ 67.7830 WTI$ 41(-1.09%)

S&P-0.13% EuroStoxx +0.07% Dax+0.10% SMI +0.24%


Macro :
‘Brexit’ Fretting at Bank of England May Be About to Intensify
Bernstein Selects 44 Europe Stocks for Recommended Portfolio

Keep an eye on :
- AC FP : AccorHotels Sees Latin America Vol. Growth 6%-7%: Echos
- ADS GY : Nike Sees 2017 Sales Up High-Single-Digit Percentage --> NKE -6% after Hours
- POP IM : ECB Said Seeking Clarification in Banco Popolare, BPM Merger
- BO DC : B&O Is Worth DKK100/Shr, Says Investment Firm Holding 2%: Borsen
- BAYN GY : Bayer/Monsanto talks more likely to result in sale than JV - MergerMarket
- BTG GR : Bertelsmann to Spend Up to EU1.3b a Year on Acquisitions: FT
- CSGN VX : Credit Suisse Sees CHF1.7b in 2016 Cost Savings, CHF4.3b in 2018
- CWC GY : Cewe Raises 2016 Ebit Target Range by ~EU6m vs 2015 Forecast
- DEQ GY : Deutsche Euroshop 2015 Revenue Rises 1%, FFO/Share Rises 2.4%
- EDF FP : France’s Chevet: Hinkley Point Can Benefit From Learning Curve
- ENEL IM : Enel Annual Dividend In Line, Sees 2017 Adj. Net EU3.4b
- FER SM : Ferrovial Extends Offer Period for Broadspectrum to April 18
- FNTN GY : Freenet Confirms Prelim 2015 Rev., Ebitda Figures Given in March
- GBB FP : Bourbon’s Chairman Said to Consider Bid to Take Company Private (YEsterday) --> Bourbon Denies Considering Delisting
- GSK LN : Glaxo Consumer-Health Unit Growth May Pay for Half of Dividend
- HEIA NA : Heineken Said to Have Bought 2.1m Shrs in United Breweries: CNBC
- ING FP : Ingenico Sets 2020 Rev., Ebitda Margin Targets
- ISP IM : Intesa Main Shareholders Propose Gros-Pietro as Board Chairman
- LNZ AV : Lenzing 2015 Sales Meet Estimates, Dividend Beats
- PFV GY : Pfeiffer Vacuum Sees Sales, Margin Improvement in 2016
- SAN FP : Sanofi, Regeneron Positive Phase 3 Results From Praluent Study
- SGL GY : SGL Carbon 2015 Net Loss Widens, Sees 2016 Sales Down Slightly
- SAZ GY : Stada Sees More Subdued Development in 1Q; Confirms 2016 Outlook
- FP FP : Total CEO: Halliburton-Baker Hughes Deal Not Good News for E&P’s
- TUI1 GY : TUI’s Hotelbeds to attract bids from HNA, Expedia, Priceline and PEs - MergerMarket
- VOD LN : Vodafone Consumer Director Cindy Rose Quits: Telegraph
- VOW3 GY : VW North America Chief Said to Revamp Strategy: Handelsblatt
- WIN GY : Diebold CEO Says Wincor Nixdorf Deal Acceptance to Be ‘Close’

>>> Europe : Brokers Upgrades & DOwngrades - 23rd of March 2016

>>> Up
*ABC ARBITRAGE RAISED TO BUY VS HOLD AT KEPLER CHEUVREUX
*HEXAGON RAISED TO OVERWEIGHT VS EQUALWEIGHT AT MORGAN STANLEY
*MOTHERCARE RAISED TO BUY VS HOLD AT PEEL HUNT
*SKY RAISED TO OUTPERFORM VS NEUTRAL AT EXANE

>>> Down
*BALOISE CUT TO NEUTRAL VS OVERWEIGHT VS JPMORGAN
*BANCO POPOLARE CUT TO HOLD VS BUY AT HSBC
*BERENDSEN CUT TO HOLD AT STIFEL
*DAIMLER CUT TO EQUALWEIGHT VS OVERWEIGHT AT BARCLAYS
*DIRECT LINE CUT TO REDUCE VS HOLD AT HSBC
*DNB ASA CUT TO HOLD AT NORDEA
*FIRSTRAND CUT TO NEUTRAL VS BUY AT GOLDMAN
*GLENCORE CUT TO MARKET PERFORM VS OUTPERFORM AT BMO
*GULF MARINE SERVICES CUT TO EQUALWEIGHT VS OVERWEIGHT: BARCLAYS
*NORDEX CUT TO HOLD VS BUY AT SOCGEN
*SERCO CUT TO REDUCE VS HOLD AT HSBC
*SWEDBANK CUT TO SELL AT NORDEA

>>> PT Change


>>>> Initiation
*GFT RATED NEW NEUTRAL AT UBS; PT EU22.5
*PROSIEBENSAT.1 REINSTATED HOLD AT BANKHAUS LAMPE, PT EU45
*RTL GROUP REINSTATED SELL AT BANKHAUS LAMPE, PT EU65
*SAINSBURY RESUMED EQUALWEIGHT AT BARCLAYS; WAS SUSPENDED

>>> Call
>> Country
Russian Equities Raised to OW at JPMorgan, S.Africa Cut to UW

>>> Bernstein lists 44 European names for its portfolio

Bernstein lists 44 European names for its portfolio, cites two value trades, one defined across the market and the other within industries.
  • Highlights correlations are coming off peak levels, falling in step with declines in implied volatility, “this could create a tactical case in favor of stock selection in short term”
  • Says spread of valuations across market and within industries is close to historic extreme levels even after a month of Value outperformance
  • Says analysts are downgrading value names at “unprecedented pace;” no sign that the recent Value bounce has been incorporated into consensus estimates
  • Portfolio includes:
    • Materials (sector weight: 10%; sector recommendation: Overweight): Rio Tinto, Antofagasta, Anglo American, HeidelbergCement, Akzo Nobel
    • Industrials (14%; Overweight): Fraport, Deutsche Post, Randstad, EasyJet, Airbus, Siemens, Volvo B
    • Consumer Discretionary (12%; Neutral): TUI AG, Peugeot, Kingfisher, WPP, LVMH
    • Consumer Staples (5%; Underweight): Sainsbury, Pernod Ricard, Henkel
    • Energy (11%; Overweight): Total, Shell, BP, GALP
    • Banks (15%; Overweight): Nordea, Intesa, BNP, SocGen, Standard Chartered
    • Insurance (4%; Underweight): Allianz, Legal & General
    • Other Financials (5%; Neutral): Aberdeen, Amundi
    • Healthcare (12%; Underweight): Novartis, AstraZeneca, Bayer, Smith & Nephew, Straumann
    • Technology (4%; Neutral): Nokia, SAP
    • Telecoms (8%; Overweight): Orange, TeliaSonera, Vodafone, Deutsche Telekom

>>> Asian Update

Asian Market Update: China Premier Li hints reform needed to achieve targets; BOJ's Kuroda plays down threat of another tax hike

***Economic Data***
- (AU) AUSTRALIA FEB SKILLED VACANCIES M/M: -0.9% V -0.4% PRIOR
- (SG) SINGAPORE FEB CPI M/M: -0.1% V +0.2%E; Y/Y: -0.8% V -0.7%E; CORE CPI Y/Y: 0.5% (5-month high) V 0.3%E

***Index Snapshot (as of 03:45 GMT)***
- Nikkei225 flat, S&P/ASX -0.5%, Kospi -0.1%, Shanghai Composite -0.3%, Hang Seng -0.3%, Jun S&P500 -0.1% at 2,040

***Commodities/Fixed Income***
- Apr gold -0.4% at $1,243/oz, May crude oil -1.0% at $41.05/brl, May copper -0.1% at $2.29/lb
- (US) Weekly API Oil Inventories: Crude: +8.8M v +1.5M prior; 5th straight week of build; largest build in 3 weeks
- USD/CNY: (CN) PBOC SETS YUAN MID POINT AT 6.4936 V 6.4971 PRIOR
- (CN) China MOF sells 3-year bonds at 2.24% - financial press
- (CN) PBOC to inject CNY80B in 7-day reverse repos
- (AU) Australia MoF (AOFM) sells 2026 Bonds; avg yield: 2.6511%; bid-to-cover: 2.57x

***Market Focal Points/FX***
- Asian equity markets are slightly lower after a mixed session overnight, with geopolitical tensions back in the forefront after another ISIS attack in Europe. Australia mining names are softer after several notable downgrades, while Hong Kong financials and tech underperformed relative to energy. In FX, USD/JPY traded in a 30pip range below 112.50, AUD/USD remained in 0.76-0.7650 range, while NZD/USD traded about 20ticks on either side of 0.6750 without much momentum despite the optimistic outlook from Fonterra in its earnings release.

- China Premier Li said the economy will rely on reform to achieve 6.5-7.0% GDP target range, calling for greater cooperation in developing new energy vehicles. On the flip side, China Securities Regulator had reportedly compiled a list of 30-40 Shanghai Exchange listed troubled companies for potential delisting and started talks with local officials to push toward exclusion from the exchanges. Yuan fix was less notable today - little changed from overnight setting.

- BOJ Gov Kuroda chimed in on the debate about sales tax hikes, stating the 2nd round will have a small impact on the economy while also reiterating CPI will reach 2% in H1 of FY17. Japan's latest inflation data will be released tomorrow. Separately, Fin Min Aso echoed overnight comments from Ishihara overnight, noting it will take as long as 3 months to evaluate impact of negative interest rates.

- Philadelphia Fed's Harker, who is not known for sharing his views frequently, revealed himself as one of the more hawkish "dots" on the Policy Board. Harker said he was not the "two dot" official - the median view from the latest FOMC meeting suggesting 2 more rate hikes this year - adding he would like to see at least 3 policy tightening moves given the strong case to continue raising rates.

***Equities***
US equities / ADRs:
- CTAS: Reports Q3 $1.05 v $0.95e, R$1.22 v $1.20Be; +2.9% afterhours
- MRK: Jury upholds one Merck Hepatitis C patent; jury could order Gilead to pay royalties to Merck in damages phase - press; +2.2% afterhours
- RHT: Reports Q4 $0.52 v $0.47e, R$544M v $536Me; -3.8% afterhours
- SHLX: Offers 8.5M common units (10% of outstanding); -4.2% afterhours
- NKE: Reports Q3 $0.55 v $0.48e, R$8.03B v $8.20Be; -6.0% afterhours
- KKD: Reports Q4 $0.22 (adj) v $0.22e, R$130.4M v $132Me (1 est); Raises share repurchase authorization by $100M (10% of outstanding) to $255M; -8.9% afterhours

Notable movers by sector:
- Consumer discretionary: China Yurun Food Group 1068.HK -2.3% (guidance)
- Consumer staples: Mengniu Dairy 2319.HK -0.2% (FY15 result)
- Industrials: Zhong Wang Group 1333.HK -2.8% (spin-off proposal); Kajima Corp 1812.JP -1.7% (raises guidance); Nufarm NUF.AU +1.0% (H1 result)
- Technology: Sharp Corp 6753.JP +1.6% (speculation on terms of Hon Hai bailout)
- Materials: Jiangxi Copper Company 358.HK +0.9% (FY15 result)
- Energy: China Coal Energy 1898.HK -2.1% (FY15 result); Huaneng Power International 902.HK +0.3% (FY15 result); Sinopec Kantons Holdings 934.HK -6.9% (FY15 result); Woodside Petroleum WPL.AU -0.8% (JV not to progress with development); GCL New Energy Holdings 451.HK -2.2% (FY15 result)
- Healthcare: Sigma Pharmaceuticals SIP.AU +3.0% (FY15 result)

>>> US After Hours Summary: NKE -6%, RHT -3.6%, KKD -6% following earn


After Hours Summary: NKE -6%, RHT -3.6%, KKD -6% following earnings

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings/guidance: LUNA +12%, PIRS +11.7%, XONE +7.1%, SCS +6.3%, CTAS +1.2%

Companies trading higher in after hours in reaction to news: AFFX +3.3% (Origin Technologies submits revised proposal to the Affymetrix Board, increasing the value of its all-cash offer for Affymetrix to $17/share), PETX+2.9% (files for second FDA approval of Entyce for appetite stimulation in dogs), IONS +2.8% (favorable patent ruling with Merck against Gilead), DF +2.7% (does not expect Wal-Mart building a dairy processing plant in Indiana to have a material impact on its financial results), VSTM +2% (announces the presentation of data supporting the initiation of a Phase 1/1b clinical trial of the combination of VS-6063 and avelumabin collaboration with Pfizer and Merck KGaA)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings/guidance: KKD -6.3%, NKE -6%, FIVE -4.5%, RHT -3.6%

Companies trading lower in after hours in reaction to news: INSY -4.7% (FDA has extended PDUFA action date for Syndros from April 1, 2016 until July 1, 2016), SHLX -4.2% (commences an underwritten public offering of 8.5 mln common units representing limited partner interests), GILD -2.1% (Federal Judge upholds validity of two Merck patents for its Hepatitis C treatment), LINE -1.7% (commenced an offer to exchange each outstanding unit of LINN Energy for one LinnCo share), MIK -1.4% (announces secondary offering of 17 mln common shares by selling shareholders)

>>> Merck patents on Hepatitis C treatment found valid in dispute with Gilead

Merck patents on Hepatitis C treatment found valid in dispute with Gilead


NEW YORK, March 22 (Reuters) - A federal jury on Tuesday upheld the validity of two Merck & Co patents in a high-profile dispute with rival Gilead Sciences Inc, which could be forced to hand over a portion of the billions of dollars in revenue from its blockbuster cure for hepatitis C.

The verdict in federal court in San Jose, California, is a major setback for Gilead, whose drugs Sovaldi and Harvoni brought in $19.2 billion in worldwide sales last year. Merck has demanded more than $2 billion in damages and a royalty of 10 percent of Gilead's sales going forward. The jury must now decide exactly how much Gilead owes. (Reporting by Andrew Chung; Editing by Jonathan Oatis)