NY Post : Bulgarian ‘bandit’ behind fake Avon bid: SEC

A shadowy Bulgarian trader is the alleged mastermind behind last month’s bogus bid for Avon.
Nedko Nedev, 37, sent shares of the cosmetics maker into a tizzy on May 14 when he filed a rambling, typo-filled offer to buy the troubled company for $18.75 a share — 180 percent above the $6.60 price it was trading at, the Securities and Exchange Commission said Thursday.
Nedev, who lives in the capital city of Sofia, took advantage of his fake offer, which sent Avon shares spiking to $12 in 30 minutes, to unload a portion of his position in the stock — netting him a total profit of $4,879, according to the SEC complaint, filed in Manhattan federal court.
The SEC later froze two US brokerage accounts with a total of $2 million.
Nedev also schemed in the last four years to pump up the stocks of insurer Tower Group, Rocky Mountain Chocolate Factory and Euroins Insurance through fake press releases and regulatory filings, the SEC alleged.
All the fake offers used similar phrases in filings and press releases, according to court papers.
“It is highly unlikely that Nedev’s trading was mere coincidence given that the manipulation occurred over four years, involved very different issuers, and occurred in at least one extremely lightly-traded stock,” the SEC said.
Neither Nedev nor PTG Capital, his company, also charged by the SEC, could be reached for comment.
While Nedev is alleged to have pulled similar hoaxes for years, it was the Avon play that finally prompted the SEC to investigate — perhaps because it was a bit red-faced after Nedev was able to push a registration document through its corporate filing system.
PTG’s offer was dubious from the start. No one had heard of PTG Capital, which sounded suspiciously like real private-equity giant TPG Capital

NY Post : Bulgarian ‘bandit’ behind fake Avon bid: SEC

A shadowy Bulgarian trader is the alleged mastermind behind last month’s bogus bid for Avon.
Nedko Nedev, 37, sent shares of the cosmetics maker into a tizzy on May 14 when he filed a rambling, typo-filled offer to buy the troubled company for $18.75 a share — 180 percent above the $6.60 price it was trading at, the Securities and Exchange Commission said Thursday.
Nedev, who lives in the capital city of Sofia, took advantage of his fake offer, which sent Avon shares spiking to $12 in 30 minutes, to unload a portion of his position in the stock — netting him a total profit of $4,879, according to the SEC complaint, filed in Manhattan federal court.
The SEC later froze two US brokerage accounts with a total of $2 million.
Nedev also schemed in the last four years to pump up the stocks of insurer Tower Group, Rocky Mountain Chocolate Factory and Euroins Insurance through fake press releases and regulatory filings, the SEC alleged.
All the fake offers used similar phrases in filings and press releases, according to court papers.
“It is highly unlikely that Nedev’s trading was mere coincidence given that the manipulation occurred over four years, involved very different issuers, and occurred in at least one extremely lightly-traded stock,” the SEC said.
Neither Nedev nor PTG Capital, his company, also charged by the SEC, could be reached for comment.
While Nedev is alleged to have pulled similar hoaxes for years, it was the Avon play that finally prompted the SEC to investigate — perhaps because it was a bit red-faced after Nedev was able to push a registration document through its corporate filing system.
PTG’s offer was dubious from the start. No one had heard of PTG Capital, which sounded suspiciously like real private-equity giant TPG Capital

>>> US Gapping up

Gapping up
In reaction to strong earnings/guidance: ZOES +4.5%, DMND +3.7%, CMGE +2.2%, UTIW +1.3%, ALOG +0.5%

M&A news: JASO +14.4% (receives non-binding 'going private' proposal for $9.69/share from Chairman and CEO), INO +2.4% (hearing reports of takeover rumors), LBTYA +1% (reports AMC that co is in discussions with Vodafone (VOD) regarding a potential transaction)

Other news: PTN +60% (positive FDA panel vote for Sprout Pharma's (private company) filbanserin for the treatment of hypoactive sexual desire disorder in premenopausal women ), PACD +9.7% (still checking, may be OPEC related), ARO +5% (CEO disclosed purchase of 250K shares, worth total of $481.1K; 6/3-6/4 transaction dates), CETV +4.5% (still checking), LTBR +4.1% (announces South Korea granted patent for metallic nuclear fuel design), RTRX +3% (received fast track designation for RE-024 for the treatment of pantothenate kinase-associated neurodegeneration), ISIS +3% (license agreement with Bayer HealthCare (BAYRY) for ISIS-FXIRx has cleared the HSR period, resulting in immediate payment to Isis of $100 mln), OPXA +2.9% (disclosed that NASDAQ granted extension request; co now has until November 30, 2015 to regain compliance with the minimum bid requirement), ANTH +2.6% (announces additional data on patient-reported outcomes from Phase 2b PEARL-SC Blisibimod study; Treatment with blisibimod was associated with statistically significant and clinically meaningful improvements in patient-reported fatigue (, MANH +2.6% (to replace LTM in the S&P MidCap 400), FEYE +1.9% (after US Office of Personnel Mgmt security breach), HZNP +1.4% (announces initiation of a Phase 3 trial of Actimmune, to treat of patients with Friedreich's Ataxia), PANW +1.3% (after US Office of Personnel Mgmt security breach)

Analyst comments: AES +1.5% (upgraded to Overweight from Neutral at JP Morgan), GRPN +0.8% (reinstated with a Buy at Deutsche Bank)

>>> US Gapping down

Gapping down
In reaction to disappointing earnings/guidance: VNCE -10.3%, ZUMZ -8.9%, ESL -7.8%, CMTL -4.3%, YGE -3.8%, LITB -3.7%, COO -2.6%, PAY -2.2%, VISN -1.4%, .

M&A news: VOD -1% (confirms it is discussing possible exchange of assets with Liberty Global (LBTYA), says not in discussions concerning a combination), .

Select EU related names showing weakness with Dax down ~1.5% overnight: NBG -3%, LUX -2.4%, NOK -2.2%, ALU -1.8%, CNHI -1.8%, SHPG -1.7%, ING -1.6%, PHG -1.6%, NVS -1.3%, ABB -1.3%, DEO -1.2%, DB -1.1%, HSBC -0.9%, CS -0.8%

Select metals/mining stocks trading lower: HMY -2.2%, GFI -1.2%, GFI -1.2%, AU -1.2%, GOLD -1.2%

Other news: CPF -6.1% (announces intentions to offer 3,000,000 shares of common stock), ENDP -1.4% (upsizes and prices offering of 24,024,025 ordinary shares at a price of $83.25 per share), BCLI -0.8% ( filed for a $100 mln mixed securities shelf offering ), QIWI -0.8% (filed for offering of ~6.42 mln ADSs representing one class B share for selling shareholders)

Analyst comments: PSG -1.2% (downgraded to Neutral from Outperform at Wedbush
)

>>> Officials deny rift between Merkel and Schaeuble over Greece

Officials deny rift between Merkel and Schaeuble over Greece - RTRS


BERLIN, June 5 (Reuters) - The German government went to unusual lengths on Friday to deny a newspaper report of a rift between Chancellor Angela Merkel and Finance Minister Wolfgang Schaeuble over Germany's tough stance towards Greece.

The mass-circulation Bild said Schaeuble had been upset by a surprise meeting in Berlin on Monday night between Merkel and Greece's international creditor institutions.

But spokesmen for both politicians were adamant that there was no disagreement.

"The chancellor and the finance minister work together tremendously and with a great amount of mutual trust," said Merkel's spokesman Steffen Seibert when asked about the report. "That's especially the case when it comes to the Greek issue."

Schaeuble's spokesman Martin Jaeger added: "I can't see any differences, either in substance or process, between my minister and the chancellor."

Bild said Schaeuble, 72, had not been informed in advance about Merkel's meeting with the heads of the International Monetary Fund (IMF), European Central Bank (ECB) and European Commission: Christine Lagarde, Mario Draghi and Jean-Claude Juncker. (Full Story)

"That was a solo number by the lady," Bild quoted a top Finance Ministry official as saying. "Merkel is letting them take her to the cleaners."

But Jaeger said Schaeuble had been aware of the meeting.

Bild's headline speculated: "Will the chancellor lose her most important minister?"

"For Schaeuble it's quite clear," the paper wrote. "The euro won't fail because of a 'Grexit' (Greek exit) but rather a softening of its rules. Wolfgang Schaeuble has nothing more to lose."

Schaeuble, one of Germany's most popular leaders, has high standing among conservative deputies already leery of rescue efforts for Greece, and has taken a firm stance against demands from Athens for more cash to avert a default.

He has clashed openly with Greek Finance Minister Yanis Varoufakis over his demands for debt relief. Jaeger said Varoufakis had asked for a meeting with Schaeuble in Berlin on Monday, but that Schaeuble would be away, and was instead trying to find time to meet Varoufakis on Tuesday. (Full Story)

Greece delayed repayment of an IMF loan on Friday, and a deputy minister said the government might call a snap election if its creditors did not soften their terms.