DJ Sizing Up CFIUS Fears in Chinese Deals -- Market Talk
10:43 ET - One gauge of how scared US companies and their Chinese buyers are of national-security regulators are the breakup fees baked into their deal. The latest, the sale of Ingram Micro (IM) by China's HNA Group, includes a $400M fee for IM if the regulator, known as CFIUS, balks. That's 7% of the deal value, fairly standard when it comes to such regulatory-related termination fees. US pork producer Smithfield would have been entitled to $275M, or about 6%, had its 2013 sale to a Chinese firm been blocked. Royal Philips didn't include any break fee at all in the sale of its LED lighting unit to a Chinese consortium--a deal that CFIUS blocked last month. There's some evidence CFIUS is getting tougher: it investigated half of transactions submitted for review in 2013, the latest year for available data, versus about 37% for the previous four years.
SEOUL, South Korea — North Korean leader Kim Jong Un recently ordered preparations for launching "terror" attacks on South Koreans, a top Seoul official said Thursday, as worries about the North grow after its recent nuclear test and rocket launch.
In televised remarks, senior South Korean presidential official Kim Sung-woo said North Korea's spy agency has begun work to implement Kim Jong Un's order to "muster anti-South terror capabilities that can pose a direct threat to our lives and security."
He said the possibility of North Korean attacks "is increasing more than ever" and asked for quick passage of an anti-terror bill in parliament.
North Korea has a history of attacks on South Korea, such as the 2010 shelling on an island that killed four South Koreans and the 1987 bombing of a South Korean passenger plane that killed all 115 people on board. But it is impossible to independently confirm claims about any such attack preparations. The South Korean presidential official did not say where the latest information came from.
Earlier Thursday, Seoul's National Intelligence Service briefed ruling Saenuri Party members on a similar assessment on North Korea's attack preparations, according to one of the party officials who attended the private meeting.
During the briefing, the NIS, citing studies on past North Korean provocations and other unspecified assessments, said the attacks could target anti-Pyongyang activists, defectors and government officials in South Korea, the party official said requesting anonymity because he wasn't authorized to speak to media publicly.
Attacks on subways, shopping malls and other public places could also happen, he said.
The official quoted the NIS as saying North Korea could launch poisoning attacks on the activists and defectors, or lure them to China where they would be kidnapped.
The Saenuri official refused to say whether the briefing discussed how the information was obtained. The NIS, which has a mixed record on predicting developments in North Korea, said it could not confirm its reported assessment.
The standoff with North Korea is not expected to ease soon, as Seoul and Washington are discussing deploying a sophisticated U.S. missile defense system in South Korea that Pyongyang warns would be a source of regional tension.
The allies also say their annual springtime military drills will be the largest ever. South Korea's defense minister said Thursday that about 15,000 U.S. troops will take part, double of the number Washington normally sends.
The North says the drills are preparation for a northward invasion.
Seoul defense officials also said that they began preliminary talks on Feb. 7 with the United States on deploying the Terminal High-Altitude Area Defense, the same day North Korea conducted what it said was a satellite launch but is condemned by Seoul and Washington as a banned test of missile technology.
The talks are aimed at working out details for formal missile deployment talks, such as who'll represent each side, according to Seoul's Defense Ministry.
The deployment is opposed by China and Russia too. Opponents say the system could help U.S. radar spot missiles in other countries.
The United States on Wednesday flew four stealth F-22 fighter jets over South Korea and reaffirmed it maintains an "ironclad commitment" to the defense of its Asian ally. Last month, it sent a nuclear-capable B-52 bomber to South Korea following the North's fourth nuclear test.
Foreign analysts say the North's rocket launch and nuclear test put the country further along it its quest for a nuclear-armed missile that could reach the U.S. mainland.
Kopelowitz Ostrow Ferguson Weiselberg Gilbert Sues Continental Automotive, Atmel Corp., Mercedes Benz and Honda Over Defective Airbags
Business Wire
MIAMI -- February 18, 2016
Kopelowitz Ostrow Ferguson Weiselberg Gilbert, a leading South Florida law firm, filed a class action lawsuit on February 17 on behalf of consumers who own or lease vehicles in the United States that have defective airbags manufactured by Continental Automotive and its supplier Atmel Corporation. The lawsuit follows the National Highway Traffic Safety Administration’s recent recall of approximately 500,000 U.S. vehicles that contain the defective airbags.
>>> Up
>>> Down
>>> Reiteration
>>> Initiation
Gapping down
In reaction to disappointing earnings/guidance: JACK -17.9%, CVRR -8%, TYL -7.7%, IPAS -7.2%, (will reduce workforce by 30%), ARRS -7.2%, BCC -5.9%, CSLT -5.4%, GDDY -5.2%, PRGO -5.2%, MEP -4.4%, WMT -4.4%, LSCC -3.4%, OGS-3.4%, MGM -3.3%, ALB -2.7%, MAR -2.5%, ABX -2.5%, NEM -2.4%, CF -2.2%, NTAP -1.9%, UPL -1.9%, DUK -1.8%,EVTC -1.6%, LDOS -1.4%, HOT -1.4%, PPP -1.3%, VA -1.3%, SWM -1.1%, BLX -1.1%, ASGN -0.9%, VPG -0.9%, NVDQ-0.8%, WM -0.8%
Select metals/mining stocks trading lower: HMY -7.8%, AU -4.7%, ABX -2.9%, IAG -2.2%, GDX -1.8%, GG -1.8%, RIO-1.2%, VALE -0.7%
Other news: SUNE -8.4% (updates on strategy to refocus its Solar Materials operations on asset-light proprietary silicon production technologies; expects $437 mln in 4Q15 charges as a result), DVN -7% (commences 55 mln share common stock offering ), WMS -4.2% (filed to delay form 10-Q), RCL -1.4% (cont weakness, may be related to violence in Turkey), SYT-1.2% (cont volatility surrounding potential M&A activity)
Analyst comments: LINE -9.6% (downgraded to Underperform at Wells Fargo), TRN -4.7% (initiated with a Sell at Axiom Capital; tgt $10)
In reaction to disappointing earnings/guidance: JACK -17.9%, CVRR -8%, TYL -7.7%, IPAS -7.2%, (will reduce workforce by 30%), ARRS -7.2%, BCC -5.9%, CSLT -5.4%, GDDY -5.2%, PRGO -5.2%, MEP -4.4%, WMT -4.4%, LSCC -3.4%, OGS-3.4%, MGM -3.3%, ALB -2.7%, MAR -2.5%, ABX -2.5%, NEM -2.4%, CF -2.2%, NTAP -1.9%, UPL -1.9%, DUK -1.8%,EVTC -1.6%, LDOS -1.4%, HOT -1.4%, PPP -1.3%, VA -1.3%, SWM -1.1%, BLX -1.1%, ASGN -0.9%, VPG -0.9%, NVDQ-0.8%, WM -0.8%
Select metals/mining stocks trading lower: HMY -7.8%, AU -4.7%, ABX -2.9%, IAG -2.2%, GDX -1.8%, GG -1.8%, RIO-1.2%, VALE -0.7%
Other news: SUNE -8.4% (updates on strategy to refocus its Solar Materials operations on asset-light proprietary silicon production technologies; expects $437 mln in 4Q15 charges as a result), DVN -7% (commences 55 mln share common stock offering ), WMS -4.2% (filed to delay form 10-Q), RCL -1.4% (cont weakness, may be related to violence in Turkey), SYT-1.2% (cont volatility surrounding potential M&A activity)
Analyst comments: LINE -9.6% (downgraded to Underperform at Wells Fargo), TRN -4.7% (initiated with a Sell at Axiom Capital; tgt $10)
Gapping up
In reaction to strong earnings/guidance: ROCK +39.9%, GLOB +16.9%, TVPT +14.4%, LDRH +10.7%, BRCD +8.3%,NVDA +8.2%, GOGL +8%, SNPS +6.6%, SODA +5.2%, SPWR +5.1%, SPRT +5%, UFPI +5%, EPAM +5%, CLD +4.9%,KEG +4.7%, AAN +4.7%, NGD +3.9%, MPEL +3.5%, WPZ +3.3%, JIVE +2.5%, MZOR +2.4%, MFA +2.3%, LZB +1.9%,UGP +1.9%, DNR +1.8%, KNOP +1.7%, COT +1.5%, GPOR +1.2%, CBMX +1.2%, CPA +0.9%, TNK +0.9%, NVMI+0.7%, SIX +0.7%, CBR +0.7%
M&A news: IM +23.2% (Ingram Micro enters into agreement to be acquired by Tianjin Tianhai for $38.90/share to become a part of HNA Group)
Select oil/gas related names showing strength: SDRL +2.7%, KMI +2.3%, COP +1.7%, BP +1.7%, CHK +1.6%
Other news: ATHX +30.3% (reported 1 year results from phase 2 stroke study of MultiStem Cell Therapy demonstrate a significantly higher rate of complete or nearly full recovery), ZFGN +19.6% (Phase 2b Trial of Beloranib in severe obesity complicated by type 2 diabetes achieves primary efficacy endpoint), AERI +16.6% ( reports 'successful' 12-month interim safety results of Phase 3 registration trial for Rhopressa), ANAD +8.6% (declares a competing bidder's proposal to acquire the co for $0.78/share a 'superior offer' to the previously announced offer of $0.66/share), PETX +8.3% (has filed a Marketing Authorization Application with the European Medicines Agency for GALLIPRANT), PTLA +5% (Biologics License Application for Andexanet Alfa accepted for review by FDA), MRVL +4.3% (Co and Carnegie Mellon University have settled their patent infringement lawsuit; MRVL to pay $750 mln to university), GLUU +4.2% ('Kendall and Kylie' game is #1 among free apps in Apple's app store), FCX +3.5% (cont strength), TSLA +3% (still checking), GWPH +2.9% (still checking), GPRO+2.3% (still checking), YHOO +1.9% (Activist investor Starboard working to launch a potential proxy fight with Yahoo, according to Bloomberg), BABA +0.8% (in symp with YHOO)
Analyst comments: IBM +2.7% (upgraded to Overweight from Equal-Weight at Morgan Stanley), AMZN +1.4% (upgraded to Buy from Hold at Canaccord Genuity)
In reaction to strong earnings/guidance: ROCK +39.9%, GLOB +16.9%, TVPT +14.4%, LDRH +10.7%, BRCD +8.3%,NVDA +8.2%, GOGL +8%, SNPS +6.6%, SODA +5.2%, SPWR +5.1%, SPRT +5%, UFPI +5%, EPAM +5%, CLD +4.9%,KEG +4.7%, AAN +4.7%, NGD +3.9%, MPEL +3.5%, WPZ +3.3%, JIVE +2.5%, MZOR +2.4%, MFA +2.3%, LZB +1.9%,UGP +1.9%, DNR +1.8%, KNOP +1.7%, COT +1.5%, GPOR +1.2%, CBMX +1.2%, CPA +0.9%, TNK +0.9%, NVMI+0.7%, SIX +0.7%, CBR +0.7%
M&A news: IM +23.2% (Ingram Micro enters into agreement to be acquired by Tianjin Tianhai for $38.90/share to become a part of HNA Group)
Select oil/gas related names showing strength: SDRL +2.7%, KMI +2.3%, COP +1.7%, BP +1.7%, CHK +1.6%
Other news: ATHX +30.3% (reported 1 year results from phase 2 stroke study of MultiStem Cell Therapy demonstrate a significantly higher rate of complete or nearly full recovery), ZFGN +19.6% (Phase 2b Trial of Beloranib in severe obesity complicated by type 2 diabetes achieves primary efficacy endpoint), AERI +16.6% ( reports 'successful' 12-month interim safety results of Phase 3 registration trial for Rhopressa), ANAD +8.6% (declares a competing bidder's proposal to acquire the co for $0.78/share a 'superior offer' to the previously announced offer of $0.66/share), PETX +8.3% (has filed a Marketing Authorization Application with the European Medicines Agency for GALLIPRANT), PTLA +5% (Biologics License Application for Andexanet Alfa accepted for review by FDA), MRVL +4.3% (Co and Carnegie Mellon University have settled their patent infringement lawsuit; MRVL to pay $750 mln to university), GLUU +4.2% ('Kendall and Kylie' game is #1 among free apps in Apple's app store), FCX +3.5% (cont strength), TSLA +3% (still checking), GWPH +2.9% (still checking), GPRO+2.3% (still checking), YHOO +1.9% (Activist investor Starboard working to launch a potential proxy fight with Yahoo, according to Bloomberg), BABA +0.8% (in symp with YHOO)
Analyst comments: IBM +2.7% (upgraded to Overweight from Equal-Weight at Morgan Stanley), AMZN +1.4% (upgraded to Buy from Hold at Canaccord Genuity)
DISH Network reports Q4 (Dec) results
- Reports Q4 (Dec) GAAP loss of $0.27 per share, may not be comparable to the Capital IQ Consensus of ($0.00); revenues rose 3.4% year/year to $3.81 bln vs the $3.74 bln Capital IQ Consensus.
- In 2015, DISH activated ~2.773 million gross new Pay-TV subscribers compared to ~2.601 million in 2014. Net Pay-TV subscribers declined ~81,000 in 2015 compared to a loss of ~79,000 in 2014. DISH ended 2015 with ~13.897 million Pay-TV subscribers compared with ~13.978 million at the end of 2014. Pay-TV ARPU was $86.79 during 2015 versus $83.77 in 2014. Pay-TV average monthly subscriber churn for 2015 was 1.71 percent compared to 1.59 percent in 2014. DISH added ~46,000 net broadband subscribers in 2015, bringing its total broadband subscriber base to ~623,000 compared to ~577,000 at the close of 2014.