>>> Wetherspoon mandates CBRE to sell 34 more pubs

Wetherspoon mandates CBRE to sell 34 more pubs 

JD Wetherspoon, the UK-listed pubs operator, has tasked CBRE with selling 34 pubs believed to be worth as much as GBP 40m (USD 60m), The Times reported.

The unattributed report said the pubs have a GBP 38m combined turnover and 27 of them are freehold or long leasehold.

The report noted that Wetherspoon hired CBRE to advise on the sale of 20 different leasehold pubs five months ago.

The Times

>>> ITV rumoured to be eyed by Liberty Global

ITV rumoured to be eyed by Liberty Global 

Liberty Global (Nasdaq:LBTYK), the London-based cable group, is rumoured to be eyeing the British television broadcaster ITV (LON:ITV), The Times reported. The market report noted that ITV’s share price was 1.5p improved at 256p, amid chatter of interest from Liberty.

This news service reported in July that Liberty Global had increased its ITV stake to 9.9%, at which time the company stated it did not intend to make any takeover offer.

The Times

>>> Dufry releases provisional results of obligation to purchase residual World

Dufry releases provisional results of obligation to purchase residual World Duty Free shares 
This notice follows the press release published on October 23, 2015, whereby Dufry Financial Services BV (the “Offeror”) announced to hold a stake higher than 95% of the share capital of World Duty Free S.p.A. ("WDF" or the ’"Issuer"). All capitalized terms not defined in this press release shall have the same meaning as in the offer document relating to the Offer approved by CONSOB by resolution no. 19342 of September 8, 2015 and published on September 10, 2015 (the “Offer Document”).


With reference to the procedure for the fulfillment of the obligation to purchase pursuant to art. 108, paragraph 2, of the TUF by the Offeror regarding no. 16,680,884 WDF shares equal to 6.55% of the share capital of the Issuer (“Residual Shares”), started on October 19, 2015 (“Procedure of the Obligation to Purchase”), the Offeror announces that, on the date hereof, the term agreed with Borsa Italiana S.p.A. to submit the requests to sell has ended. The payment of the consideration concerning the Procedure of the Obligation to Purchase, equal to Euro 10.25 (the “Consideration of the Obligation to Purchase”) per each Residual Share which has been requested to be sold, will be made on November 11, 2015 (“Date of Payment of the Obligation to Purchase”).


On the basis of the provisional results transmitted by Banca IMI S.p.A. (Intermediary Responsible for Coordinating the Collection of Tenders), the Offeror communicates that, also through purchases made on the market, on the Date of Payment of the Obligation to Purchase it will come to hold 246,030,182 WDF shares, equal to 96.66% of the corporate capital of the Issuer.


Joint Procedure. In light of above, as indicated in the Offer Document and in the notice dated October 23, 2015, the requirements for the exercise, by the Offeror, of the right to purchase pursuant to art. 111 of the TUF and for the obligation to purchase pursuant to art. 108, paragraph 1, of the TUF have been met. Therefore the Offeror will exercise the right to purchase pursuant to art. 111 of the TUF and, simultaneously, will fulfill the obligation to purchase pursuant to art. 108, paragraph 1, of the TUF, by means of a joint procedure (the “Joint Procedure”) relating to all the shares of the Issuer still on the market as of the Date of Payment of the Obligation to Purchase, corresponding to 8,489,818 and equal to 3.34% of the share capital of the Issuer (the “Additional Residual Shares”).


The consideration per each Additional Residual Share to be paid at the end of the Joint Procedure shall be equal to the Consideration of the Obligation to Purchase (i.e. Euro 10.25).


The Offeror, in order to execute the Joint Procedure, on November 13, 2015, will confirm to the Issuer the deposit of an amount equal to the aggregate price of the Additional Residual Shares on the Relevant Account held at the Cash Confirmation Issuing Bank and the availability of such amount. On such date, the ownership of the Residual Shares will be transferred to the Offeror and consequently recorded in the shareholders’ register by the Issuer, pursuant to article 111, paragraph 3, of the TUF.


The terms of the Joint Procedure shall be confirmed in the press release concerning the final results of the Procedure of the Obligation to Purchase which shall be published on November 9, 2015.


Delisting of the ordinary shares of WDF. Since the Joint Procedure will be carried out, Borsa Italiana S.p.A., pursuant to article 2.5.1, paragraph 6, of the Regulations of the Markets Organized and Managed by Borsa Italiana S.p.A., has ordered - by means of resolution no. 8123 dated October 26, 2015 - the suspension from trading on the Electronic Stock Market (Mercato Telematico Azionario) of the Issuer’s ordinary shares on the trading days of November 11 and November 12, 2015 and their subsequent delisting starting from the trading day of November 13, 2015.

>>> Germany iterates firm stance on capital-gains taxes in cash-and-stock acquis

Germany iterates firm stance on capital-gains taxes in cash-and-stock acquisitions, potentially affecting Deutsche Wohnen shareholders’ premium from Vonovia’s offer

Germany’s government iterated its tough stance on capital-gains taxes in cash-and-stock takeover offers, a Deutsche Boerse unit said on its website on Wednesday, The Wall Street Journal reported.

The move is set to make deal-making in Europe’s largest economy more difficult, including the merger of the country’s two largest residential-real-estate companies, Vonovia and Deutsche Wohnen, in a USD 14bn transaction, according to the report.

To make its offer successful, Vonovia needs to get at least 50% plus one Deutsche Wohnen share on a diluted basis, according to the report. Taking the two Deutsche Wohnen convertible bonds into account, the minimum threshold moves up to around 56%, the WSJ reported.

Lawmakers plan to apply a 26% tax on the entire cash component also to foreign investors, Deutsche Boerse’s clearing and settlement unit Clearstream said on its website on Wednesday. That means all shareholders holding less than 1% will be immediately taxed, but may claim back some of it depending on their country of residence, the WSJ reported.

The ruling, in place for years, was largely overlooked and, until now, unclear whether non-German investors would also be taxed. That matters because most of Germany’s large listed companies are mainly held by investors outside the country, the New York-based daily business newspaper reported.

“The finance ministry’s letter provides clarity. I assume that Germany’s federal states will follow the ministry’s proposal and approve it,” said Joachim Dahm of Germany’s association of private banks, according to the WSJ online report.

While the letter means clarity for investors in general, it means uncertainty for the tie-up of Vonovia with Deutsche Wohnen. More than half of Deutsche Wohnen’s shares are in the hands of foreign investors holding less than 1%, according to company estimates.

The Wall Street Journal in October reported about the tax rule, causing investors and analysts to question the attractiveness of Vonovia’s offer for its next-biggest rival, according to the report. Vonovia’s Finance Chief Stefan Kirsten last Monday told analysts that the law would only affect retail shareholders and investors who hold their stake in countries that have a “difficult tax-treaty situation with Germany,” alluding to countries that don’t have a double tax treaty, the WSJ reported in the online story.

Vonovia in October said it plans to offer seven of its own shares and EUR 83.14 (USD 90.37) in cash for each 11 Deutsche Wohnen shares. The proposed mix of roughly 70% shares and 30% cash valued Deutsche Wohnen at EUR 25.86 a share, or EUR 14bn in total, at the offer’s announcement, according to the WSJ.

Some investors and analysts have said that the tax could shave the premium off Vonovia’s offer and make the offer unattractive, according to the report. “We are convinced that investors who are eventually affected will only get a minimal effect,” a spokeswoman for Vonovia said Wednesday.

Wall Street Journal Europe

>>> Busch would not rule out controlling majority in Pfeiffer Vacuum

Busch would not rule out controlling majority in Pfeiffer Vacuum 

Busch, the German vacuum pump and compressor specialist, would not rule out gaining control of local rival Pfeiffer Vacuum, Boersen-Zeitung reported. The German daily cited Busch owning family member Sami Busch, who told the paper a controlling majority is a possible option, adding that he is looking at all possibilities. Busch said he could acquire further Pfeiffer Vacuum shares if a good opportunity arises.

Busch acquired a 15% stake in September describing it as a financial investment and having no intention of exerting board influence, the report noted. Busch is now talking to Pfeiffer Vacuum regarding an appropriate representation on the board, Busch told the paper.

Busch now holds 27.2% in the company.

Pfeiffer Vacuum has a market cap of EUR 1.069bn.

Boersen-Zeitung

>>> Puma dampens speculation of Kering sale plans

Puma dampens speculation of Kering sale plans 

Puma, the listed German sports and leisure wear group, has dampened speculation its 86% shareholder Kering is planning to sell its stake, Boersen-Zeitung reported.

The German daily cited Puma CEO, Bjorn Gulden, who in response to the speculation said he has no indication from Kering that the French shareholder is planning to exit. Gulden noted he has good contact with the nine-director board which includes five Kering representatives.

The original article was published on page 7.

Boersen-Zeitung

>>> Weekly Update

Weekly Market Update: Robust Labor Report Fuels Fed Liftoff Expectations


US equities eked out their sixth week of gains as the October jobs report outperformed and earnings season entered the home stretch. After the anemic Q3 GDP report and September's weak job growth, there were real concerns the Fed would not be able to deliver an initial rate hike this year. The October jobs report dispelled the notion. In Europe, there were real concerns about the very weak September German industrial production report, while in China PMI numbers remained pretty poor. By Friday the US Dollar Index reached a new 7-month high, and the benchmark 10-year yield backed up 18 basis points to surpass 2.3% for the first time since July. For the week, the DJIA gained 1.4%, the S&P500 gained 1% and the Nasdaq advanced 1.8%.

A month ago, the September US jobs report was a big bust, with the low headline nonfarm number and significant revision lower to the August payrolls figure raising real questions about the state of the US economy, not to mention the viability of Fed pledges for a 2015 rate liftoff. Friday's October jobs report reversed sentiment about the US jobs market. The nonfarm figure absolutely crushed expectations (+271K v 185Ke) and pulled the three-month nonfarm average to +187K, which is just modestly below the +206K average for the year to date. The annualized unemployment rate fell to 5.0% (the lowest level since May 2008) from 5.1% in September, while underemployment dropped below 10% for the first time since 2008. Meanwhile, the civilian labor force participation rate remains stuck at 62.4%.

The case for a December Fed rate hike looks pretty strong after the October jobs report. Fed fund futures had been gradually creeping up heading into the data, and in the aftermath of the NFP report the contract showed traders believe there is a 70% chance of a 25 basis point hike at the December FOMC meeting. In speeches this week, Chair Yellen said December was a live meeting and Vice Chair Fischer more or less dismissed the argument that inflation was too low to begin raising rates. Moderate FOMC voter Lockhart made the case for rate hikes, while hawk Bullard started talking about the debate that would surround the second round of rate hikes. Even the dove Evans all but made the case for a hike in a CNBC interview after the jobs data, saying conditions "could be ripe" for a rate increase and that he goes into each meeting with an open mind.

Bank of England rate hike expectations are headed in the opposite direction. UK treasury yields tumbled after the BoE signaled in its quarterly inflation report that it would delay raising interest rates due to a more cautious outlook on inflation and growth. Analysts suggested that the details of the inflation report mean the BoE had delayed rate hikes by as much as 10 to 12 months, to late 2016. The minutes for the previous BoE policy meeting came out at the same time, and confirmed that McCafferty was the only MPC member to vote for a rise in interest rates. The 10-year benchmark gilt yield lost as much as five bps to trade 1.967% on Thursday, however the yield was back up as high as 2.049% on Friday after the jobs report.

PMI data out of China last weekend showed little improvement, with two key measures seeing their eighth month of contraction. The official October manufacturing PMI missed expectations for breakeven, remaining on par with last month at 49.8, while the official Services PMI hit a three-year low of 53.1. The SME-oriented Caixin final September manufacturing PMI remained in contraction as well, although it continues to creep a bit closer to growth. China Premier Li again stepped away from the 7% GDP target, mentioning at least twice that the potential for 6.5% annual GDP growth through 2020 would help China accomplish its economic agenda.

After dropping to around $42 last week, front-month WTI crude futures marched higher to retake the $48 handle on Tuesday and Wednesday. The strength couldn't last after both the API and DoE crude inventories turned in another week of sizable builds. Then an unnamed OPEC official was said to have commented there would be no deal to cut the cartel's production at the meeting in December, assuming non-OPEC countries do not move to cut their own production. Finally, on Friday President Obama said the government would reject the Keystone XL pipeline, citing a preference for clean energy efforts and projecting the pipeline would not have generated much economic growth. WTI closed out the week around $44.30 and Brent ended up back around $47.

Valeant's shares fell below the lows seen in October when details of the Philidor pricing scandal were leaked out. VRX plummeted 16% on Thursday and dipped below $80 a share for the first time in more than two years after the WSJ chronicled investor Bill Ackman's response to the fallout over the last few weeks. The WSJ piece suggested Ackman wavered in his support of Valeant CEO Pearson, though he later issued a statement in support of Pearson, as did the Valeant board. The biotech wreckage spread to other names as they released new data this week. Bluebird Bio shares tanked after analysts were unimpressed with new abstracts for its experimental sickle cell disease treatment, and Incyte shares were tripped up on Friday upon release of some early stage cancer data that might indicate limited uses for a new cancer drug under development.

Tech darlings Facebook and Tesla surged after their third-quarter earnings reports, and Facebook shares moved to a new all-time high above $110/share. Facebook's top- and bottom-line results exceeded targets, while both monthly and daily active users rose by double digits. A horde of analysts upgraded price targets on the name and made very positive comments. Shares of Tesla sustained double digit percentage gains after earnings, even though top- and bottom-line results merely met expectations. Investors were heartened by projected Q4 deliveries at a better than expected at 17-19K, although the company slightly narrowed its FY deliveries guidance to 50-52K. On its call, the firm said it aspired to be cash flow positive by the first quarter of 2016. Regarding the new Model X, Tesla said it would achieve steady state production capacity during the first quarter of 2016.

Media names were under pressure after reporting third-quarter results. Time Warner saw strong earnings, while 21st Century Fox missed revenue targets. CBS did quite well, and Disney saw revenue growth across its main business lines. However, it was Time Warner that upset the space, offering a surprise initial FY16 earnings forecast on the company's conference call that was well below expectations. Multiple analysts cut their outlooks on Time Warner, and shares of the name lost around 9% on the week.

The two successor companies of Hewlett-Packard began trading on Monday morning. Shares of HP, Inc. are trading under the old HPQ ticker, while Hewlett Packard Enterprise is trading under ticker HPE on the NYSE. HP, Inc. will focus on personal computers and printers, while Hewlett Packard Enterprise will sell commercial computers systems, software and tech services.

In M&A news, Visa reached a deal to acquire former subsidiary Visa Europe for €16.5 billion ($18.2 billion) in cash and stock, with the potential for an additional payment of up to €4.7 billion. Shire said it would buy Dyax for about $5.9 billion, or $37.30/share, representing a 35.5% premium to Dyax's closing stock price on Friday. Dyax shareholders may also get an additional contingent value right worth $4.00/share if Dyax's DX-2930 drug is approved. AstraZenica snapped up ZS Pharma for $90/share in cash, for a total deal valued around $2.7 billion. Youku Tudou, the so-called YouTube of China, agreed to be acquired by Alibaba for $27.60/ADS in an all cash deal valuing the firm around $4.4 billion. Alibaba already owned one-fifth of the firm.