(Valores) Oi Shareholder Asks Brazil CVM to Reassess Merger W/PT: Valor

The asset management company Polo Capital asked the Securities and Exchange Commission (CVM) to reassess their understanding of the merger between Hi and Portugal Telecom (PT). The management, which has common shares Hi, says the events from the loss of € 897 million from the Portuguese tele box, applied in Rioforte, bankrupt holding company of the...

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>>> General Mills beats by $0.10, misses on revs; reaffirms FY16 outlook but rai

--> GIS +1.6% in pre open

General Mills beats by $0.10, misses on revs; reaffirms FY16 outlook but raises FX headwind

  • Reports Q1 (Aug) earnings of $0.79 per share, excluding non-recurring items, $0.10 better than the Capital IQ Consensus Estimate of $0.69; revenues fell 1.4% year/year to $4.21 bln vs the $4.25 bln consensus, FX reduced net sales growth by 5 percentage points.
    • On a constant-currency basis, net sales grew 4 percent, including 2 points of growth contributed by the Annie's business acquired in Oct 2014. Pound volume was 2 percent above year-ago levels.
    • Net price realization and mix contributed 2 points of net sales growth. Adjusted gross margin increased 290 basis points due to improved net price realization and savings from cost-reduction initiatives.
  • General Mills reiterated its full-year growth targets for 2016, which current General Mills reiterated its full-year growth targets for 2016, which currently exclude any impact from the proposed Green Giant divestiture:
    • Net sales in constant currency are expected to essentially match the 2015 levels that included a 53rd week. Total segment operating profit is expected to grow at a low single-digit rate in constant currency.
    • Constant-currency adjusted diluted EPS is expected to grow at a mid single-digit rate from the base of $2.86 earned in fiscal 2015. At current exchange rates, the company estimates a 9-cent headwind from FX in 2016 (up from $0.04), which comes to EPS of $2.92-2.94 vs. $2.96 Capital IQ Consensus.

>>> FactSet beats by $0.01, reports revs in-line; guides Q1; acquires Portware

--> FDS No pre open indication for now

FactSet beats by $0.01, reports revs in-line; guides Q1; acquires Portware

  • Reports Q4 (Aug) earnings of $1.48 per share, $0.01 better than the Capital IQ Consensus of $1.47 vs. $1.46-1.48 guidance; revenues rose 9.7% year/year to $261.8 mln vs the $261.75 mln consensus.
  • Co issues guidance for Q1, sees EPS of $1.46-1.48 vs. $1.49 Capital IQ Consensus Estimate; sees Q1 revs of $265-259 mln vs. $265.92 mln Capital IQ Consensus Estimate.
    • The lapse in the U.S. Federal R&D tax credit on December 31, 2014, reduced each end of the GAAP diluted EPS range by $0.02 compared to the recently completed fourth quarter.
    • If the U.S. Federal R&D tax credit is re-enacted by Nov 30, 2015, diluted EPS would range between $1.51 and $1.53. FactSet would also recognize an income tax benefit of $0.14 per share if the R&D tax credit could be retroactively applied to previous periods.
  • Co has agreed to acquire all the issued and outstanding membership interests of Portware, LLC for cash consideration of $265 million. Portware is an award-winning, multi-asset execution management system ("EMS") that is trusted by the world's largest asset managers.

>>> Darden Restaurants beats by $0.10, reports revs in-line; raises FY16 EPS abo

--> DRI +1.3% pre open

Darden Restaurants beats by $0.10, reports revs in-line; raises FY16 EPS above consensus; Q1 comps +3.4%;

Reports Q1 (Aug) earnings of $0.68 per share, excluding non-recurring items, $0.10 better than the Capital IQ Consensus Estimate of $0.58; revenues rose 5.7% year/year to $1.69 bln vs the $1.67 bln consensus. Q1 Same-restaurant sales increased 3.4% for the quarter.
  • Co issues raised guidance for FY16, sees EPS of $3.15-3.30 from $3.05-3.20 vs. $3.13 Capital IQ Consensus Estimate. Co reaffirms FY16 U.S. same-restaurant sales growth at 2.0% to 2.5%.

>>> AutoZone beats by $0.06, beats on revs --> indicated +2.5% pre open

AutoZone beats by $0.06, beats on revs

Reports Q4 (Aug) earnings of $12.75 per share, $0.06 better than the Capital IQ Consensus Estimate of $12.69; revenues rose 7.9% year/year to $3.29 bln vs the $3.25 bln consensus.
  • Q4 gross margin was 52.5% (versus 52.3% for the same period last year).
    • The improvement in gross margin was attributable to higher merchandise margins, partially offset by higher supply chain costs associated with current year inventory initiatives (-24 bps), and the impact of the Interamerican Motor Corporation (IMC) acquisition finalized during September, 2014 (-24 bps).
  • Co will begin implementing our new supply chain strategy now and complete it in a few years.

(Makor) SAB MILLER / INBEV CORPORATE ACCESS: OCTOBER 1st LONDON

We are delighted to host again Industry Veteran Gary Bull for a lunch to discuss the potential merger. The format will be Q&A. We hosted Gary in July earlier this year. We look forward to seeing you for the lunch.


Lunch with Former SAB Miller executive
ThursdayOctober 1st @1:00PM
Mayfair

Views on the Approach ahead of the PUSU deadline
His experience makes for unique insight as to potential synergies, overlaps areas of improvement in a merger.

Our Guest:

Gary Bull
20 Years at SAB Miller

Chairman, Member of the Board or ex-officio Member of multiple SABMiller subsidiary boards

2013 – 2015 SABMiller Procurement GmbH (Switzerland)
Head of Finance & Business Performance

2010 – 2013 SABMiller Procurement GmbH (Switzerland)
VP: Business Development

2000 – 2010 SABMiller Europe (Switzerland, Hungary, Czech Republic)
Director: Commercial Services

1996 – 2000 SAB Plc (Poland)
Senior VP, Finance

1987 – 1996 SAB Ltd (South Africa)
General Manager (Transkei and Eastern Cape)

1985 – 1987 SAB Ltd (South Africa)
Projects Manager

(SG) Volkswagen - Indeterminable liability from corporate own goal

* Update VW has admitted it designed software for diesel cars (c. 20% of VW US sales) that
deceives US regulators when measuring toxic nitrogen dioxide (N02) emissions. VW has
been using a "defeat device" to temporarily reduce N02 emissions during testing. When the
cars are on the road they emit as much as 40 times the level of N02 allowed under US
clean air rules. VW CEO Martin Winterkorn apologised and pledged full cooperation and an
external investigation. VW could face civil penalties of up to $37,500 ( €33,200) for each of
the 482,000 potentially non-compliant 4-cylinder VW and Audi diesel vehicles sold since
2008. This implies a worst case civil penalty of $18bn or €15.9bn/€32 per VW share. In past
cases where manufacturers have admitted providing misleading information, the penalties
have been below the potential maximum figure. The previous largest fine was the $300m
paid by Hyundai-Kia for overstating gas mileage. It also agreed to pay a further $400m to
settle a class action suit. But the VW case may break new legal ground.

* SG view As well as the potential financial issue, the biggest concerns are reputational
risk and potential criminal charges. VW has long lagged in the US, and clean diesel has
been a strategic pillar to differentiate itself and meet burgeoning emissions standards. This
has been deeply compromised. The search for the responsible parties could potentially
reach management board level (who knew what?) and lead to significant uncertainty and
volatility in the stock price beyond the inevitable initial sharp mark-down reaction. VW will
likely remain under pressure and in the penalty box for some time as the investigations and
litigation gather pace. Significant management changes may be a positive catalyst.

* How we value the stock TP reduced from €280 to €180 reflecting the unprecedented
financial and reputational destruction risk, concomitant reductions in valuations of the
operational divisions, risk of management distraction, and an increase in the overall SotP
discount factor from 10% to 25% (see page 2). With fundamentals undermined, we cut our
rating to Hold from Buy with 12m projected 14.6% TSR.

* Events, catalysts & risks 9M 15 results 28 Oct. Risks to TP: downside: unprecedented
criminal and civil penalties; further slowdown in China and Brazil; upside: US situation
proves less severe than we anticipate; management change.