Potential Sovereign rating after European close
- (PT) Portugal Sovereign Debt Rating published by S&P
- (FI) Finland Sovereign Debt Rating published by Fitch
- (TR) Turkey Sovereign Debt Rating published by Fitch
- (HU) Hungary Sovereign Debt to be rated by S&P
- (NG) Nigeria Sovereign Debt to be rated by S&P
- (FR) France Sovereign Debt might be published by Moody's
- (SI) Slovenia Sovereign Debt Rating might be published by Moody's
- (UK) UK Sovereign Debt Rating might be published by Moody's
Gapping down
In reaction to disappointing earnings/guidance: ADBE -2.2%
Select fan favs trading lower: NFLX -1.7%, GPRO -1.4%, FIT -1.2%, TSLA -1.2%, AAPL -0.9%, TWTR -0.9%, FB -0.8%
Select financial related names showing weakness: DB -2.6%, ING -2.5%, CS -2.2%, RBS -1.7%, HSBC -1.5%, SAN -1.4%, BCS -1.2%, WFC -0.9%
Select EU names stocks trading lower: TEF -2.7%, CRH -1.8%, SAP -1.6%, RCL -1.4%, GSK -1.4%, ABB -1.2%
Select oil/gas related names showing early weakness: PE -8.4%, WLL -2.6%, TOT -2.4%, SDRL -1.9%, RDS.A -1.8%
Other news: LQ -10.5% (revising its 2015 financial guidance as a result of weaker than anticipated hotel demand ; announces that President and CEO Wayne Goldberg has stepped down; accelerates its share repurchase program; approves a program to repurchase up to $100 million of its common stock, effective immediately ), BUD -2.4% (pulling back after recent strength), AI-1.9% (reduced its quarterly dividend to $0.625/share from $0.875/share), ITCI -1.7% (following 10 pt move higher yesterday), MTGE -1.1% (lowers quarterly dividend to $0.40/share from $0.50/share, says it repurchased 1.2 mln shares in Q3 )
Analyst comments: LXRX -4.6% (downgraded to Sell at Gabelli & Co), SFY -4.5% (downgraded to Sector Perform at RBC Capital Mkts)
In reaction to disappointing earnings/guidance: ADBE -2.2%
Select fan favs trading lower: NFLX -1.7%, GPRO -1.4%, FIT -1.2%, TSLA -1.2%, AAPL -0.9%, TWTR -0.9%, FB -0.8%
Select financial related names showing weakness: DB -2.6%, ING -2.5%, CS -2.2%, RBS -1.7%, HSBC -1.5%, SAN -1.4%, BCS -1.2%, WFC -0.9%
Select EU names stocks trading lower: TEF -2.7%, CRH -1.8%, SAP -1.6%, RCL -1.4%, GSK -1.4%, ABB -1.2%
Select oil/gas related names showing early weakness: PE -8.4%, WLL -2.6%, TOT -2.4%, SDRL -1.9%, RDS.A -1.8%
Other news: LQ -10.5% (revising its 2015 financial guidance as a result of weaker than anticipated hotel demand ; announces that President and CEO Wayne Goldberg has stepped down; accelerates its share repurchase program; approves a program to repurchase up to $100 million of its common stock, effective immediately ), BUD -2.4% (pulling back after recent strength), AI-1.9% (reduced its quarterly dividend to $0.625/share from $0.875/share), ITCI -1.7% (following 10 pt move higher yesterday), MTGE -1.1% (lowers quarterly dividend to $0.40/share from $0.50/share, says it repurchased 1.2 mln shares in Q3 )
Analyst comments: LXRX -4.6% (downgraded to Sell at Gabelli & Co), SFY -4.5% (downgraded to Sector Perform at RBC Capital Mkts)
Competition and Markets Authority (CMA) has asked the European Commission to investigate the merger of two providers of airline passenger service systems
Amadeus and Navitaire both supply IT solutions, including passenger service systems, to airlines and other customers in the UK, Europe and across the world. Amadeus IT Group S.A. plans to acquire the information technology solutions, including the passenger service systems, business of Navitaire LLC.
The proposed acquisition qualifies for investigation by multiple EU Member States, including the UK, and the Competition and Markets Authority believes that in this instance it would be appropriate for the EC to undertake a single investigation on behalf of those Member States that wish to transfer jurisdiction to it.
Such a step is procedural and does not prejudge the EC's ability to determine, if it accepts jurisdiction, whether competition concerns arise in the UK as a result of the merger.
Other EU Member States have 15 working days from receipt of the CMA's request to determine whether to join the request. The Commission then has 10 working days in which to notify the CMA whether it has accepted jurisdiction in this case.
The CMA will publish on its website a non-confidential version of its request in due course.
Gapping up
In reaction to strong earnings/guidance: PDEX +14.1%, AKS +8.2%, ZAYO +2.8%, KUTV +2.7%
Other news: SFXE +19.7% (cont strenght after co secured $60 mln in new financing and refinances its existing $30 mln revolving credit facility yesterday), VBLT +15.7% (announces that complete Phase 2 data on VB-111, in combination with Bevacizumab will be presented at the European Society for Medical Oncology's (ESMO) European Cancer Congress ), MTL +4.9% (still checking), SFUN +4.3% (announces a $400 to $700 mln investment from IDG, Carlyle and management members), RXDX +1.5% (announces initiation of Phase 1/1b clinical trial of RXDX-107 in patients with locally advanced or metastatic solid tumors ), KGC +1.2% (lowered guidance for all-in sustaining cost per gold equivalent ounce sold to $975-1025 from $1000-1100; lowers CapEx guidance to $650 mln from $725 mln), ARW +0.7% (announced authorization for an additional $400 million in repurchases, via its common share repurchase program)
Analyst comments: CEMP +3.6% (announces the FDA has granted qualified infectious disease product designation to Taksta), GSBD +0.7% (upgraded to Outperform from Mkt Perform at Raymond James)
In reaction to strong earnings/guidance: PDEX +14.1%, AKS +8.2%, ZAYO +2.8%, KUTV +2.7%
Other news: SFXE +19.7% (cont strenght after co secured $60 mln in new financing and refinances its existing $30 mln revolving credit facility yesterday), VBLT +15.7% (announces that complete Phase 2 data on VB-111, in combination with Bevacizumab will be presented at the European Society for Medical Oncology's (ESMO) European Cancer Congress ), MTL +4.9% (still checking), SFUN +4.3% (announces a $400 to $700 mln investment from IDG, Carlyle and management members), RXDX +1.5% (announces initiation of Phase 1/1b clinical trial of RXDX-107 in patients with locally advanced or metastatic solid tumors ), KGC +1.2% (lowered guidance for all-in sustaining cost per gold equivalent ounce sold to $975-1025 from $1000-1100; lowers CapEx guidance to $650 mln from $725 mln), ARW +0.7% (announced authorization for an additional $400 million in repurchases, via its common share repurchase program)
Analyst comments: CEMP +3.6% (announces the FDA has granted qualified infectious disease product designation to Taksta), GSBD +0.7% (upgraded to Outperform from Mkt Perform at Raymond James)
Former Brazil President Lula said not to want Fin Min Levy removed as it would not help the country's fiscal position - financial press - Would like to see former central bank gov Meirelles as Fin MIn should Levy leave the ministry
1
AB InBev shareholder says SABMiller tie-up not accretive at current price; payouts could see SABMiller execs leave
One of AB InBev’s top 50 shareholders said the Belgian brewing group’s planned takeover bid for UK-based rival SABMiller lacks a compelling logic, the Financial Times reported. Based on the current share price, such a deal would not be particularly accretive, the shareholder said, adding that returns would increase only slightly. The shareholder was quoted in a longer analytical report about the potential deal.
The newspaper cited an analyst who estimated that a tie-up with SABMiller could yield synergies of up to USD 2bn (EUR 1.75bn). Such a deal could give the enlarged group more purchasing power, the item added.
Separately, another analyst cited by the report said it is hard to see a way in which SABMiller could defend against AB InBev’s bid while adding significant shareholder value.
An article in The Times said SABMiller’s senior management could receive up to USD 1.8bn in options and shares to be sold or vested should the proposed takeover by AB InBev proceed. The report cited an analyst at Bernstein for the USD 1.8bn figure.
SABMiller CEO Alan Clark has shares and options worth close to GBP 70m, based on an assumed takeover price of GBP 39 per share, the item said, adding that further incentives could be triggered in the event of a takeover.
The Bernstein analyst said he thought that a takeover might also trigger payouts to second tier executives. The analyst argued that the executives who benefited from such payouts would be likely to leave the company.
SABMiller would not comment regarding the size of potential payouts, the article said. However, the report cited one unspecified source who said that many vested shares currently held by Clark and fellow SABMiller executives were exercised at strike prices reaching GBP 22.50p per share. Up to 1,700 people at SABMiller could benefit from the potential payouts, the source added.
AB InBev has yet to disclose terms of its proposed offer, but most analysts are estimating that a take-out price would be GBP 39 or GBP 40 per share, the article said. An offer at GBP 40 would value the merged group at up to USD 330bn (GBP 289bn) including debt, according to the report.
SABMiller's share price market capitalisation stood at GBP 58.56bn in early trading in London on Friday, 18 September, while AB InBev's market cap stood at EUR 161.87bn (GBP 118.57bn)