>>> GlaxoSmithKline shareholder Woodford Investment Management pushing for break

GlaxoSmithKline shareholder Woodford Investment Management pushing for break-up

GlaxoSmithKline [LON: GSK] (GSK) shareholder Woodford Investment Management is urging the FTSE-100 pharmaceuticals company to consider a break-up, Sky News reported.

The exclusive report cited insiders speaking on Saturday, 24 October who said Woodford Investment Management founder Neil Woodford has discussed the issue in private with GSK Chairman Philip Hampton.

Woodford wants GSK to formally look into splitting of its dermatology business, its consumer healthcare arm Stiefel and its HIV unit ViiV from its vaccines and medicines division, according to the report.

It is understood that Woodford and Hampton have scheduled another meeting to discuss the break-up proposal and that Woodford has also sounded out other key GSK shareholders, the item noted.

GSK has indicated that it wants to shift its focus from prescription drugs to consumer products and vaccines, the article noted.

Several large GSK investors are still supportive of CEO Andrew Witty’s strategy, the report said, quoting one investor who said it would be premature to examine GSK’s structure as the upside from the company’s deals with Swiss counterpart Novartis has not yet been delivered.

GSK has acquired Novartis’ vaccines business, sold its oncology arm to Novartis and formed a consumer healthcare venture with the Swiss company, the item noted.

The report went on to cite another person familiar with GSK who said the company’s core pharmaceuticals and vaccines arm had been fully integrated and would, therefore, make a break-up a more difficult process.

It is not known exactly how large of a stake Woodford holds in GSK, but it is less than the 5% that would prompt Woodford to formally disclose the shareholding, the article said.

Spokespersons for GSK and Woodford refused to comment, according to the report.

GlaxoSmithKline's market capitalisation stood at GBP 66.62bn (EUR 92.09bn) at the close of trading in London on Friday, 23 October.

Link to original source


Source Sky News

>>> Aberdeen Asset Management spokesman denies CEO approaches potential buyers

Aberdeen Asset Management spokesman denies CEO approaches potential buyers

An Aberdeen Asset Management [LON:ADN] spokesman has denied that founder and CEO Martin Gilbert is looking to sell the UK-based investment firm, the Financial Times reported.

The spokesman was cited as saying that neither an informal or formal approach to potential buyers has ever been made by Gilbert in his 32 years with the firm running the business.

The comment was in response to the item which reported citing people familiar with the matter that Gilbert has informally contacted several rivals over past months. One source said Gilbert is happy to stay independent while not denying that he has made approaches, the item noted, adding that Gilbert would not comment.

The business could attract funds in the US, UK and Asia as well as private equity firms Blackstone, Warburg Pincus and KKR, the report said, citing analysts. Bank insiders were quoted as saying that Deutsche Bank and Credit Suisse have indicated that their interest in asset management has been re-ignited though any acquisitions in the near term won't be likely.

Aberdeen Asset Management bought Deutsche Bank's institutional fund business in the UK and US in 2005, and seven years ago, it also snapped up a big portion of the global fund management business of Credit Suisse, as reported.

Financial Times

>>> Repsol set to sell Peruvian downstream assets for EUR 350m – report (transla

Repsol set to sell Peruvian downstream assets for EUR 350m 

Repsol, the Spanish oil major, is set to sell its downstream assets in Peru for EUR 350m, the Spanish daily Expansion reported, citing industry sources. The assets, worth a combined EUR 350m, include Repsol’s 51.03% stake in the La Pampilla refinery, along with 374 petrol stations, the report said.

Talks have been held with potential buyers including Primax, a Chilean-Peruvian group that operates petrol stations in Peru and Ecuador, as well as with unidentified investment funds and industrial groups, the report said, adding that, in 2008, Primax paid EUR 32m for Repsol's network of 123 petrol stations in Ecuador.

Other assets that could be put on the block as part of Repsol’s EUR 6.2bn disposals plan announced last week include its 250 petrol stations in Italy, the report added.

Expansion

>>> What to look at today - 26th of October 2015

Asian equity markets got their first opportunity to respond to another heavy dose of monetary easing by the PBoC, and the reaction has been fairly positive though perhaps somewhat more muted than anticipated. Nikkei is leading the rally by over 1% despite the firmer JPY, followed closely by the mainland indices. Dec e-mini futures however are down marginally. On Friday, the PBoC cuts both the 1-year rate and system-wide RRR by 25bps and 50bps, while also deciding to remove the ceiling on bank deposit rates. The decision to cut comes on the eve of China's Communist Plenum where it will formally announce its growth targets going forward. Over the weekend, Chinese leaders worked to manage market expectations of a potential downgrade from the 7% target. Premier Li said 7% is not a hard target that should be "defended to the death", and that 6.9% growth reported in Q3 still represents reasonable range. PBoC Dep Gov Yi Gang then added that China can sustain growth of 6-7% for the next 3-5 years. Later in the day, PBoC research bureau chief Lu Lei also remarked that the GDP of 6.9% reflects China economic fundamentals. Ahead of this week's crucial BOJ meeting that features semiannual review of GDP and CPI objectives, Goldman Sachs forecast that Japan central bank will announce more easing. In Europe, officials with SNB and BOE reacted to the easier tone adopted by the ECB Pres Draghi in the last decision. BOE's Carney said that while UK interest rate hike is a possibility, it is not a certainty. Likewise, SNB VP Zurbruegg said the central bank will monitor and evaluate the impact of any easing measures taken by the ECB the next time when it meets.

Nikkei +0.65% Hang Seng -0.32% Shanghai +0.10%

Eur$ 1.1032 JPY 121.13 CNY 6.35 GBP 1.5326 BRL 3.8763 RUB$ 62.13 WTI $44.68 (+0.18%)

S&P -0.22% EuroStoxx +0.06% Dax +0.11% SMI +0.23%


Macro
- Juncker: Must Slow Down the Uncontrolled Flows of Refugees
- EU Said to Be Alerted to Problems With Car Tests in 2013: FT

Keep an eye on :
- ADN LN : Aberdeen Asset Management Said to Seek Buyers for Company: FT
- ACS SM : ACS Wins EU85m Contract for Japanese Photovoltaic Plant
- AF FP : Air France Could Start Hiring New Pilots From 2018: Echos
- BKIA SM : Bankia seen as target for Spain’s top banks in upcoming M&A
- BINCK NA : BinckBank 3Q Net Drops, Sees First KIFID Rulings in Coming Half
- CSGN VX : Credit Suisse Enlarges Rights Offering Banking Syndicate
- ERF FP : Eurofins Raises 2015 FY Revenue Target; Sees Positive Trends
- EROS LN : Eros Falls Most on BSE 500 Tracking U.S. Parent’s 17% Decline
- MKS LN : Marks & Spencer CEO Tells Board He’s Sticking Around: Telegraph
- MTX GY : MTU Aero Says End-of-Year Targets Reaffirmed
- UG FP : Peugeot Citroen 3Q Rev. In Line; Says Confident in Plan
- PHIA NA : Philips 3Q Adj. Ebita Beats Estimates; Lumileds Sale Uncertain
- PRY IM : Prysmian Awarded China Submarine Cable Project Worth Over $140m
- RWE GY : RWE to Transfer Five Lignite Power Plants to German Reserve
- RWE GY : Germany Agrees EU1.6B Capacity Reserve W/RWE, Vattenfall, Mibrag
- SPM IM : Eni to Sell Part of Its Saipem Stake to Cassa Depositi: Il Sole
- SECUB SS : Diebold to Sell Business to Securitas for $350 Million
- SHP LN : Shire Says It Will Have Chance to Argue Against Bass Challenge
- SYNN VX : Syngenta to Be Proactive After CEO’s Exit, Chairman Tells SaS
- TNTE NA : TNT 3Q Adj. Op Income EU13m; Says Progress Made on FedEx Offer
- UBSN VX : Swiss Banks Need More Capital, Finma CEO Branson Tells SaS
- VOW3 GY : Volkswagen Probe to Incl. Managers Who Turned Blind Eye: NYT
- VOW3 GY : Volkswagen Mulls Exchanging Cars Instead of Recall Repairs: DPA
- VOW3 GY : Winterkorn Didn’t Know About Diesel Software at VW: BamS
- VOW3 GY : VW Suspends Another Top Engineer Over Diesel Scandal: BamS
- VOW3 GY : VW Sees Diesel Scandal Costing More Than EU30b: Manager Magazin

>>> Europe : Brokers Upgrades & Downgrades - 26th of October 2015

>>> Up
*BRAMMER RAISED TO BUY AT JEFFERIES
*GREEN REIT RAISED TO OUTPERFORM FROM NEUTRAL AT CREDIT SUISSE
*NATIONAL EXPRESS RAISED TO BUY VS HOLD AT LIBERUM
*NORTHGATE RAISED TO BUY AT JEFFERIES
*ROCKWOOL RAISED TO BUY VS HOLD AT HSBC

>>> Down
*GO-AHEAD CUT TO HOLD VS BUY AT LIBERUM
*HEXPOL CUT TO HOLD AT NORDEA
*INGENICO CUT TO NEUTRAL VS BUY AT BOFA
*JENOPTIK CUT TO HOLD VS BUY AT BERENBERG
*KEMIRA CUT TO HOLD AT NORDEA
*RANDSTAD CUT TO EQUALWEIGHT VS OVERWEIGHT AT MORGAN STANLEY
*SSAB CUT TO NEUTRAL VS BUY AT GOLDMAN
*SSAB CUT TO HOLD VS BUY AT KEPLER CHEUVREUX
*THYSSENKRUPP CUT TO NEUTRAL AT CITI

>>> PT Change


>>> Initiation
*LEG IMMOBILIEN RATED NEW NEUTRAL AT CREDIT SUISSE
*MERLIN RATED NEW NEUTRAL AT CREDIT SUISSE

>>> Call
>> Stock
*BANCO POPOLARE SET AS A NEW LONG AT MEDIOBANCA, REPLACES UBI
*GENERALI SET AS A NEW SHORT AT MEDIOBANCA, REPLACES DANIELI

>>> Bankia seen as target for Spain’s top banks in upcoming M&A –report (transla

Bankia seen as target for Spain’s top banks in upcoming M&A 

Bankia [BME:BKIA], the Spanish bank that is 63.8%-owned by the state, is seen as a potential target for Spain’s top banks, Expansion reported. The banking industry in Spain is expected to undergo a new wave of mergers and acquisitions and Bankia is seen as one of the main protagonists, the Spanish-business daily said.

If it is bought by either Santander [BME:SAN] or BBVA [BME:BBVA], it would make them the undisputed leader in the Spanish financial industry, the report said. Bankia is particularly strong in Madrid and Valencia, where regional regulators would need to approve the deal, which would also need to be extended to all shareholders, the report continued.

Spain holds its majority stake in Bankia via Frob (the Fund for Orderly Bank Restructuring), which is expected to hold any sale of Bankia through a competitive auction, the report said.

The report also referred to another bank owned by Frob, Banco Mare Nostrum (BMN), which the government is required (under EU bailout regulations) to have sold by 2017. General elections later in the year may revive the government’s appetite to revive earlier plans (later shelved) to launch an initial public offering for the group, the report said.

Expansion

>>> Asian Update

Asian Mid-session Update: Equities rally after another PBoC rate cuts as markets look ahead to China Plenum growth

***Economic Data***
- (TH) Thailand Sept Custom Trade Balance: $2.8B v $1.1Be

***Index Snapshot (as of 02:30 GMT)***
- Nikkei225 +1.2%, S&P/ASX +0.1%, Kospi +0.1%, Shanghai Composite +0.7%, Hang Seng +0.3%, Dec S&P500 -0.1% at 2,063

***Commodities/Fixed Income***
- Dec gold +0.1% at $1,164/oz, Dec crude oil +0.4% at $44.79/brl, Dec copper +0.1% at $2.35/lb
- (KR) South Korea Finance Ministry sells 20-yr bonds at 2.215%
- (CN) As of Oct 23rd, China total margin debt CNY1.01T v CNY973B w/w (highest since Sept 1st)
- (AU) Australia MoF (AOFM) sells A$900M in 4.75% 2027 Bonds; avg yield: 2.81%; bid-to-cover: 2.79x

***Market Focal Points/FX***
- Asian equity markets got their first opportunity to respond to another heavy dose of monetary easing by the PBoC, and the reaction has been fairly positive though perhaps somewhat more muted than anticipated. Nikkei is leading the rally by over 1% despite the firmer JPY, followed closely by the mainland indices. Dec e-mini futures however are down marginally. In FX, USD/JPY is down about 40pips from the highs below 121.10, while AUD/USD and NZD/USD are up some 50pips from session lows respectively above 0.7260 and 0.6790.

- On Friday, the PBoC cuts both the 1-year rate and system-wide RRR by 25bps and 50bps, while also deciding to remove the ceiling on bank deposit rates. The decision to cut comes on the eve of China's Communist Plenum where it will formally announce its growth targets going forward. Over the weekend, Chinese leaders worked to manage market expectations of a potential downgrade from the 7% target. Premier Li said 7% is not a hard target that should be "defended to the death", and that 6.9% growth reported in Q3 still represents reasonable range. PBoC Dep Gov Yi Gang then added that China can sustain growth of 6-7% for the next 3-5 years. Later in the day, PBoC research bureau chief Lu Lei also remarked that the GDP of 6.9% reflects China economic fundamentals.

- Ahead of this week's crucial BOJ meeting that features semiannual review of GDP and CPI objectives, Goldman Sachs forecast that Japan central bank will announce more easing. Business Federation (Keidanren) chairman Sakakibara was less convinced, stating the economy was still in virtuous cycle though it has slowed a little. PM Abe's cabinet and Abenomics reviews remain lukewarm - only some 25% said in a survey they were confident Abenomics would result in improved economy.

- Overseas in Europe, officials with SNB and BOE reacted to the easier tone adopted by the ECB Pres Draghi in the last decision. BOE's Carney said that while UK interest rate hike is a possibility, it is not a certainty. Likewise, SNB VP Zurbruegg said the central bank will monitor and evaluate the impact of any easing measures taken by the ECB the next time when it meets.

***Equities***
Notable movers by sector:
- Consumer discretionary: Li Ning Co 2331.HK +1.1% (asset sale); Kao Corp 4452.JP +1.0% (9M result); Stockland SGP.AU +0.8% (Q1 result); Panasonic Corporation 6752.JP +8.0% (H1 result speculation)
- Financials: China Vanke 2202.HK +2.5%, Evergrande Real Estate Group 3333.HK +1.7% (PBoC cuts rates); China Reinsurance (Group) Corporation 1508.HK +0.4% (IPO debut); Agricultural Bank of China 1288.HK -0.9% (Q3 result); Shanghai Pudong Development Bank 600000.CN +2.6% (approval for asset purchase and share sale)
- Industrials: Dalian Port PDA Co 601880.CN +4.6% (Q3 result); Great Wall Motor 601633.CN +2.7% (Q3 result); Orient Overseas International 316.HK -5.8% (Q3 result); Nippon Yusen 9101.JP -3.9% (likely to miss H1 guidance); Hitachi Ltd 6501.JP +7.2% (raises guidance)
- Technology: Beijing Baofeng Technology Co 300431.CN -7.8% (job cut speculation); Anhui USTC iFlytek Co 002230.CN +4.3% (9-month result); Toshiba Corporation 6502.JP +4.3%, Sony 6758.JP +4.0% (speculation for Toshiba to sell business to Sony)
- Materials: Bluescope Steel BSL.AU +11.6% (acquisition, raises guiance)
- Energy: China Shenhua Energy Co 601088.CN +2.5% (Q3 result); Xinjiang Goldwind Science & Technology Co 2208.HK +3.0% (Q3 result)