FT : Vincent Bolloré appoints son to Vivendi board

Vincent Bolloré appoints son to Vivendi board

Vincent Bolloré has appointed his son to the board of Vivendi, in a move that tightens the French billionaire’s grip on the media group as it looks to become a force in southern Europe.
In a statement late on Wednesday, Vivendi said that Yannick Bolloré, chairman and chief executive of the Bolloré family-controlled Havas advertising group, had been co-opted on to the supervisory board to replace the departing Philippe Donnet.

Last month, Mr Donnet was appointed chief executive of Generali at the Italian insurance group’s annual shareholders’ meeting.
Yannick Bolloré’s appointment comes as his father ratchets up his control over Vivendi, having become its chairman in 2014 and increased his personal stake to 14.4 per cent from just 5 per cent a few years ago.
It also coincides with an intense period of dealmaking at Vivendi as the group, which owns Universal Music Group and the Canal Plus film and television unit, looks to extend its influence beyond French borders.
News of the board change accompanied Vivendi’s quarterly results, which showed that adjusted net profit during the first three months of 2016 was down 27.3 per cent year-on-year, at €99m, but broadly in line with analysts’ consensus forecasts.
Revenues during the period reached €2.49bn, a shade below the level analysts had expected, on average, and 1.4 per cent below the figure from a year earlier, in comparable terms.
Vivendi reported “strong growth” in music streaming and subscriptions at UMG but said that Canal Plus’s French TV channels were finding trading conditions “difficult”.
In a statement after the market close, Yannick Bolloré said he was “delighted to have the chance to support the group in its ambitious plan to redevelop its content and media”.
Last month, in a clear sign of Mr Bolloré senior’s strategic plans, Vivendi agreed to take a 3.5 per cent stake in Italy’s Mediaset and full control of the Italian broadcaster’s pay-television business.
Analysts saw the move as an attempt to take the fight to Rupert Murdoch’s Sky Empire, which last year united its businesses across the UK, Italy, Germany, Ireland and Austria as a single group.
Vivendi has also built a 24.9 per cent stake in Telecom Italia over the past year or so, becoming the Italian operator’s biggest shareholder.

>>> US Gapping down

Gapping down
In reaction to disappointing earnings/guidance: FOSL -33.9%, CJES -25.2%, TRXC -18.4%, QTM -13.7%, FELP -13.3%, CYTX -11.1%, ZAGG -10.1%, WATT -7.7%, YGE -7.6%, M -7.5%, FOGO -6.9%, SRT -5.8%, NUAN -5.5%, DIS -5.1%, ALRM -4.9%, XONE -3.4%, TM -3.3%, ATSG -3.2%, DGLY -3.1%, WGBS -3%, NAME -2.8%, MTSC -2.6%, LRAD -2.4%, AVXL -2%, SCSC -1.9%, EFOI -1.7%, HLIT -1.5%, NATR -1.4%, AMRS -1.3%, JAZZ -1.2%, ZIOP -1.1%, ECPG -1%

M&A news: ODP -35% (Judge grants the FTC's request for a preliminary injunction to block the proposed merger with Staples (SPLS -10.1%), SPLS -15.1% (Judge grants the FTC's request for a preliminary injunction to block the proposed merger with Staples (SPLS -10.1%)

Select EU financial related names showing weakness: CS -5.3%, DB -2.7%, SAN -1.9%, BCS -1.8%, HSBC -1.4%


Other news: ERF -5.3% (announces CAD 200 mln bought deal financing), JCP -3.6% (in sympathy with M (reported earnings)), MOV -3.6% (in sympathy with FOSL (reported earnings)), KSS -3.6% (in sympathy with M (reported earnings)), HPP -3.2% (prices offering of 10,600,000 shares of common stock by co and selling shareholders), TGT -2.6% (in sympathy with M (reported earnings)), LPI -2% (prices offering of 9,500,000 shares of its common stock for total gross proceeds of ~$105.9 mln), ALR -1.8% (does not anticipate filing the Quarterly Report within the five day extension provided)

Analyst comments: N/A

>>> US Gapping up

Gapping up
In reaction to strong earnings/guidance: FUEL +17.1%, TROV +16.7%, NAII +15.2%, WYY +14.3%, CDOR +13.9%, NTRA +13.6%, CSIQ +12.7%, TWER +12.4%, AXAS +11.9%, CTIC +10.5%, SYNC +10.2%, HEAR +10%, EA +9%, REXX +7.5%, KTCC +7.1%, ARWR +6.6%, RICK +6.4%, CVM +5.3%, AG +5.3%, SGYP +4.8%, BUFF +4.7%, ALB +4.6%, MTBC +4.4%, KGC +3.4%, PLNT +2.9%, VKTX +2.4%, SUNW +2.4%, CALL +1.9%, VTAE +1.5%, CSLT +1.2%, ISR +1%, JIVE +1%, INFU +0.8%

M&A news: GAIA +17% (SQBG to acquire GAIAM (GAIA) yoga brand for ~$146 mln; expected to be immediately accretive; increases rev guidance), SQBG +4.1% (to acquire GAIAM (GAIA) yoga brand for ~$146 mln; expected to be immediately accretive; increases rev guidance)

Select metals/mining stocks trading higher: MUX +6.9%, AG +5.3%, IAG +4.2%, KGC +3.4%, EGO +3.1%, SLW +3%, MTL +2.6%, ABX +2.6%, MTL +2.6%, GDX +2.5%, NEM +2.5%, AUY +2.4%, SLV +2.4%, FCX +2.3%, AU +2%, SBGL +1.8%, BBL +1.5%, GFI +1.4%

Other news: JKS +2.8% (in sympathy with CSIQ), BHP +1.3% (outlines areas of focused to 'create value'; expects $3.6 bln of productivity gains by end of 2017 and is increasing exploration activity), WFT +1.1% (Director insider buy disclosure - purchased of 100000 shares, worth total of $558.7K)

Analyst comments: IDTI +3.4% (upgraded to Buy from Neutral at BofA/Merrill), NEM +2.6% (upgraded to Buy from Neutral at Goldman), WFT +1.1% (added to Short-Term Buy List at Deutsche Bank ), CMO +0.6% (upgraded to Outperform from Market Perform at Wells Fargo)

NY Post : Family says dad killed mom because he got too high on weed candy

DENVER — The family of three boys filed a lawsuit against two recreational marijuana businesses after a shooting that left their mother dead and their father charged with murder.

The lawsuit claims companies that made a type of marijuana-infused candy and sold it to the father failed to warn him about its potency and possible side effects, including psychotic behavior.

The Denver Post reported Tuesday the suit was filed on the boys’ behalf by their grandparents, Wayne and Marti Kohnke, and aunt, Tamara Heman, who are now their guardians.

Richard Kirk is charged with first-degree murder in the April 14, 2014, shooting death of his wife, Kristine Kirk. Before she was shot, Kristine Kirk told a 911 dispatcher her husband was hallucinating and was getting a gun.

Richard Kirk pleaded not guilty by reason of insanity. A defense expert, Dr. Andrew Monte, said in a report submitted to the court that Kirk was intoxicated with THC, marijuana’s psychoactive ingredient, which led to delirium.

Authorities said low levels of THC were found in his blood, and a partially eaten piece of marijuana candy was found in the house. The candy came from a legal marijuana shop.

The lawsuit names Gaia’s Garden LLC and Nutritional Elements Inc. It says Gaia’s Garden made the candy and that Kirk bought it from Nutritional Elements.

Sean McAllister, an attorney for Gaia’s Garden, said the company has always complied with state requirements for labeling and packaging its products. He said marijuana doesn’t lead to violence and that the company will fight the suit.

Tiffany Goldman, chief operating officer for Nutritional Elements, declined to comment.

(MS) MNST / STZ / NWL : New Comp. Accounting rule positive for these names

Morgan Stanley making positive comments on MNST, STZ, NWL citing new stock compensation accounting rule 
- The FASB recently issued a new standard (ASU 2016-09) requiring all excess tax benefits, or 'windfall' tax deductions, to be recognized in income and presented as operating cash flows (see below for a list of companies that have already reflected this change in accounting method). To put it simply, companies who issue share-based compensation (options/restricted stock/etc) will be required to account for any tax impact above (or below) what was originally expected when the compensation was granted. Said another way, an excess tax benefit (or deficiency) arises when a company takes an actual tax deduction that is greater (or less) than the deduction that was expected when the corresponding share-based awards were granted. 
- For instance, take an award valued at $100 on the grant date that vests over 2 years. The company expects a tax deduction at the grant date of $35, based on a 35% tax rate. If the underlying award is valued at $200 after vesting, then the actual tax deduction is $70 ($200 x 35%), resulting in an 'excess' benefit of $35.