>>> US Gapping Up

Gapping up In reaction to strong earnings/guidance: ESNC +3.4%, AGN +3.2%, CHSP +0.6%

M&A news: PNX +168.6% (to be acquired by Nassau Reinsurance Group for $37.50 per share in cash), TEVA +1.3% (enters into $27 bln bridge loan credit agreement with various brokers; will use funds borrowed as a portion of the cash consideration for its pending acquisition of the global generics business of Allergan (AGN)), EXC +1.2% (Exelon and Pepco Holdings file for reconsideration of their merger; Settlement discussions underway with the District of Columbia government)

Select metals/mining stocks trading higher: HMY +5.4%, MT +3.7%, AKS +2.2%, GFI +1.6%, RIO +1.3%, X +1%, FCX +0.8%

Select oil/gas related names showing strength: PKD +6.3%, GDP +4.8%, SDRL +3.7%, STO +2.7%, RDS.A +2.4%, OAS +2.4%, RIG +2%, TOT +1.9%, SD +1.9%, BP +1.6%

Other news: CERE +17% (announced that KWS SAAT SE will evaluate Ceres' Persephone bioinformatics technology under a license agreement), CHLN +16.8% (approves a revised proposal for the contemplated reverse stock split with an increased cash-out price of $3.00/share), NVAX +7.4% (reports positive top-line data from its Phase 2 clinical trial of RSV F Vaccine, used to protect infants via maternal immunization; also awarded a grant of up to $89 million from the Bill & Melinda Gates Foundation, to support development of the RSV F Vaccine Phase 3 clinical trial), CANF +5.8% (Mitchell P. Kopin discloses 7.4% passive stake in 13G filing), YHOO +3.6% (provided update on Alibaba (BABA) stake spin off; co continues to expect completion in Q4; spin-off no longer conditioned upon receipt of a favorable ruling from the IRS), MWW +3% (announced sale of 50.01% owneship position in JobKorea for ~$85 mln), STM +3% (still checking), VALE +2.9% (proposes a dividend reduction), XON +2.3% (formed a new Exclusive Channel Collaboration with ZIOPHARM Oncology (ZIOP) to pursue cellular therapy approaches to autoimmune disorder), TTM +2.3% (RBI cut int rates by 50bps), SUNE +2.3% (modest rebound after recent weakness), FRO +2% (to delist from LSE), AA +1.4% (favorable commentary on Monday's Mad Money)

Analyst comments: RJET +9.6% (upgraded to Buy from Hold at Deutsche Bank), ALV +3.1% (upgraded to Neutral from Sell at Goldman), VRX +2.1% (initiated with a Buy at Nomura), GPRO +1.9% (initiated with a Buy at Sterne Agee CRT), MU +1.6% (upgraded to Outperform from Market Perform at Wells Fargo), MCD +1.3% (upgraded to Outperform from Neutral at Credit Suisse), CUDA +1.3% (initiated with a Buy at Stifel), BMY +1.2% (upgraded to Buy from Neutral at UBS), JNJ +1.1% (upgraded to Buy from Hold at Deutsche Bank), TXRH +0.8% (initiated with a Outperform at Telsey Advisory Group)

(SKY News) Glencore In Peace Talks Over $2.5bn Cash Call - full artoicle

Glencore, the crisis-hit miner and commodities trader, has held secret peace talks with the City's most influential investor trade body amid fury over the company's recent $2.5bn (£1.6bn) cash call.
Sky News has learnt that a meeting took place on Tuesday morning between the Investment Association - whose members manage £5.5trillion of client assets - and John Burton, Glencore's company secretary.
The talks were also attended by a senior banker from Citi, one of Glencore's financial advisers.
A source familiar with the summit said it had been convened in response to concerns raised by institutional investors about the resources group's decision to raise equity through a placing, thereby bypassing a pledge to give existing shareholders the right of refusal to participate.
The move, part of a $10bn (£6.6bn) debt reduction plan announced by Ivan Glasenberg, Glencore's chief executive, was designed to reassure investors about the state of the company's balance sheet during a period of depressed commodity prices.
However, the placing sparked fury in the City, prompting investors to issue a strongly worded statement.
"The Investment Association and the National Association of Pension Funds note that 22% of the issue was allocated to employee shareholders of Glencore, while their members, who represent the savings of millions of individuals, enjoyed no such choice.
"Whilst shareholders generally recognise that the company needed to strengthen its balance sheet, the use of the authority in this manner is a serious and unnecessary breach of the principles [of pre-emption].
"Most importantly, there is no evidence of any suitable consultation with existing shareholders," it said.
"This sets a very damaging precedent for market practices."
Glencore and the Investment Association both declined to comment on Tuesday's meeting, and it was unclear whether a firm commitment had been given by Mr Burton that the company would not raise capital in this way again.
The fact that Glencore - whose chief executive is notoriously truculent - decided to attend the meeting indicates, however, that it acknowledges the strength of shareholders' feelings at a time when it could be forced to seek a further capital cushion.
Mr Glasenberg is understood to have pulled out of attending a dinner organised by the Singaporean bank DBS on Monday following a precipitous fall in Glencore shares which saw its value fall by almost one-third during the day's trading in London.
Investors were spooked by a research note published by the investment bank Investec which concluded that Glencore's equity could be worthless if low commodity prices persist.
Glencore shares rebounded on Tuesday, trading up by about 5% during the morning as analysts suggested that the company could be taken private.
The company is examining the sale of a number of assets, including its agricultural commodities unit, although observers questioned whether a mooted $12bn (£7.9bn) valuation for the division was realistic.
Promoted Stories
From Sky News
Recommended by Outbrain Recommended by Outbrain Top Stories Corbyn To Pitch To Public With First Speech Breaking News: Live: Build-Up To Corbyn's Speech British IS Fighters Hit With UN Sanctions 'Fake Sheikh' Charged Over Tulisa Drugs Trial Paul Walker's Daughter Sues Porsche Over Crash

>>> Cevian says ABB needs to 'hurry up' push to simplify - paper - RTRS

Cevian says ABB needs to 'hurry up' push to simplify - paper - RTRS


29-SEP-2015 12:42:05

ZURICH, Sept 29 (Reuters) - ABB ABBN.VX Chief Executive Ulrich Spiesshofer needs to speed up his streamlining efforts at the Swiss engineering group, a director of ABB's second-largest investor told a Swiss business newspaper.

"When it comes to boosting efficiency and agility as well as the simplification of the business units, ABB management needs to hurry up," Lars Foerberg, managing partner of Cevian Capital, told Finanz und Wirtschaft, according to an interview published on the paper's website on Tuesday.

ABB revealed in June that Cevian had taken a stake of more than 3 percent. The activist investor has since increased it to about 5.2 percent. (Full Story)

Foerberg said Cevian agrees with ABB's decision to combine its Power Systems and Power Products into a new division, Power Grids, which will be subjected to a strategic review over the coming year before ABB decides what to do with it.

ABB CEO Spiesshofer has said all options are on the table, including a sale of Power Grids. UBS analysts estimated the business may be worth $10 billion. (Full Story)

"To start with, there needs to be an impartial, fact-based analysis of the division," Foerberg told the paper. "As far as I can tell, that's what ABB is doing."

He said the possible sale suggested the division had few synergies with the rest of ABB's business.

Cevian, which has also bought stakes in German steelmaker ThyssenKrupp AG TKAG.DE and Swedish truckmaker Volvo VOLVb.ST, generally invests in companies in which it sees the potential to double the value of its investment within three to seven years.

(HSBC) GLobal Cement : Cement industry in EM turmoil

We remain cautious on trading prospects in emerging markets (EM) and believe that it is too early to invest for a rebound in share prices. We re-iterate our Reduce rating on industry leader LafargeHolcim (TP CHF42 from CHF66), our India coverage (ACC, Ambuja and Ultratech), Indocement and Holcim in Indonesia (two of three Indonesian stocks under coverage). We prefer developed markets at present, particularly US-exposed global majors, with a small Buy list headed by Cemex (TP USD10.15) and HeidelbergCement (TP EUR81 from EUR91).