FT : O2 to become public company again after merger with Three

O2 to become public company again after merger with Three

O2 is being lined up to become a public company again under plans by CK Hutchison, after it has completed its £10.3bn acquisition to create the UK’s largest mobile telecoms group.
CK Hutchison, which is controlled by Hong Kong billionaire Li Ka-shing, is buying O2 from Telefónica, and will merge it with its Three network depending on regulatory approval.
In an interview with the Financial Times, Canning Fok, co-chief executive of the Hong Kong group, said the combined UK business would be run by David Dyson, Three’s chief executive.
“David Dyson is our leader here and so he will be the leader [of the new business],” Mr Fok said.
This will raise questions over the future of O2 boss Ronan Dunne, although other roles could exist in the wider group. A spokesperson for Mr Dunne confirmed that he will step down from his position as chief executive of O2 after the deal had completed.
Mr Fok added that an initial public offering of the combined £15bn business has been discussed with external investors, which have committed about £3bn to fund the deal. Investors include the CPP Investment Board and Singapore’s GIC.
O2 was last listed as a separate business after being split from BT in 2003.
“There is a liquidity requirement by our investor group and one way to provide will be an IPO, which we will support,” said Mr Fok, who declined to give a timeframe.
“Its only reasonable that you give yourself some time. No one is a magician . . . you need to work on business, and get the customer happy.”

He said the group would initially continue to use O2 and Three as brands. “You can assume that it might become Three. But there is a twist,” he said. “We haven’t made the final decision yet. We have a certain time we can use O2. It’s a strong brand.”
Mr Fok was confident that Hutchison could agree a deal with the regulators to pass his acquisition of O2 in the UK and the merger with Wind and Three in Italy.
Analysts have warned that both deals might face difficulties after a similar deal in Denmark was pulled this month in the face of opposition from the antitrust regulator in Brussels.
“This market is full of competition. We have done this exercise in Austria and Ireland and we will come up with a solution in which everyone is comfortable,” he said.
Denmark was a different sort of merger to the UK, he added, given the attempt to merge the second- and third-largest groups, which could have led to a near duopoly.

He also that he would talk to Ofcom, the UK telecoms regulator, about the future of a complicated network sharing arrangement. O2 shares a network with Vodafone, while Three shares with EE, but both rival groups would resist being left on their own in a three-company market.
Mr Fok said it would not be practical to offload the extra traffic on one network immediately.
“Three is 45 per cent of the data in the UK so it’s not like one day I can make a decision to switch to this or that. We have to work with the regulator to see what is the best approach,” he said.

WSJ : Nike’s Challenge: Staying Ahead of the Pack

Nike’s Challenge: Staying Ahead of the Pack

Company’s growth has been helped by athleisure phenomenon

Nike Inc. has long been running in a league of its own but young rivals are trying to muscle in.

Under Armour Inc. on Wednesday forecast it would double revenues over the next three years to $7.5 billion. And Skechers USA Inc. has vaulted into the No. 2 spot among sports-footwear makers in the U.S.

With $30.6 billion in sales in its last fiscal year, Nike’s position as the world’s best seller of sports attire and footwear is solid—and its challenge is maintaining its giant lead.

When the company reports first-quarter earnings Thursday, its sales growth faces a tough comparison to last summer’s World Cup mania. Analysts polled by FactSet forecast revenues of $8.2 billion and earnings per share of $1.19, up slightly from $7.9 billion and $1.09 a year ago.

A Citigroup research report notes that Nike’s North American region is facing its toughest quarterly comparison since June 2012. A year ago, the company posted 15% growth in future orders for the region, an important metric that estimates growth in wholesale orders for the coming six-month period and is considered an indicator of demand for Nike products.

Citi says Nike needs to maintain a projected double-digit growth rate of future orders to avoid a hit on its shares. Nike stock is up 19% so far this year, making it the second-best performer in the Dow Jones Industrial Average after UnitedHealth Group Inc.
Nike’s recent growth has been helped by something that has less to do with sweat and more to do with style—the athleisure phenomenon, which has been called the biggest trend to hit fashion since the skinny jean. But there, too, it is facing new competition. Spandex-infused styles were trotting the runways of New York Fashion Week, highlighting the full breadth of Nike’s ever-growing competition, which now extends beyond sporting goods bins to high-end luxury.

A recent trouble spot for Nike has been in its legacy product: running footwear. The proliferation of casual styles at family-channel stores has boosted Skechers into its second-place sports-footwear ranking, according to industry tracker NPD Group. This past spring, Nike executives said midprice running shoes weren’t “performing as well as we would like.”

The Skechers surge shows Nike isn’t insulated from competition, though Nike’s setback may have been short-lived. On its last earnings call in June, Nike Brand President Trevor Edwards said the category was rebounding.

Meanwhile, on the playing field, Under Armour has gotten a lot of buzz from its sponsorship for golfer Jordan Spieth, basketball point guard Stephen Curry, and football quarterback Tom Brady all of whom won major championships this year. German-based Adidas AG, fighting to combat its declining U.S. market share, recently signed NBA all-star James Harden and NFL MVP Aaron Rodgers, and announced it would take over the NHL league outfitting rights in two years.

Furthermore, central to Nike’s task of maintaining its dominance will be dealing with succession after founder and chairman Phil Knight retires, something that is expected next year. The company laid the groundwork for his exit in June, transferring much of his supervoting class A shares to a separate holding company, and at a recent shareholders’ ​meeting ratified the election of Mr. Knight’s son Travis to the board of directors.

The company is also expected to announce its first investor day meeting in two years, for later this year.

>>> What to look at this Week End - 19th & 20th of September 201

Dow-0.30% S&P-0.15% Nasdaq+0.10% Russell+0.48% Nikkei-1.06% Hang Seng+1.94% Shanghai -3.20% EuroStoxx-0.96% FTSE-0.22% CaC-0.28% Dax-2.05% Ibex+1.12% MIB-1.14% SMI -0.38% SXXP-0.27%
In one of the most uncertain monetary policy announcements in years, the Fed held rates near zero and left many market watchers nonplused with a mixed message about the future. The Fed noted additional improvement in the labor market, but justified a further delay in rate liftoff by citing new concerns about global market volatility. Disappointing US retail sales and industrial production data during the week gave the Fed decision some additional cover. Elsewhere, the Euro Zone reported more anemic inflation data, while the BOE said it was on track for contemplating its own rate move around the turn of the year. Ahead of the FOMC meeting, a risk-on sentiment sent equities higher, but they retrenched after the Fed's cautious tone about overseas developments (exacerbated by triple witching expiry on Friday). For the week, the DJIA lost 0.3%, the S&P500 dipped 0.1%, and the Nasdaq edged up 0.1%.

Macro :
- Japan Expected to Maintain Economic Outlook Next Week: Nikkei
- ECB’s Coeure Says Greek Euro-Exit ‘Completely Ruled Out’
- Fed Hike Would Add Insult to Injury for EM: BlackRock’s Goldberg
- Bullard Says Fed ‘Ready to Go’ on Rates in Oct. if Warranted
- Moody's cuts France sovereign debt rating one notch to Aa2 from Aa1; revises outlook to Stable from Negative 

Keep an eye on :
- ABI BB : AB InBev Pondering Move to U.K. to Avoid Tax Bill: Telegraph
- AAPL US : Reportedly had discussions earlier this year with the California DMV, leading to increased speculation about a potential 'Apple Car' - UK press
- BAYN GY ; Bayer Says Covestro Share Sale to Raise EU2.5b
- DLG GY : Dialog Semiconductor to Buy Atmel for About $4.6 Billion
- FCX US : Icahn discloses stake increased to 8.8% (up from 8.46% in Aug) - 13D/A filing
- FXPO LN : Ferrexpo Considers Hiring Adviser for Restructure: Sunday Times
- IBE SM : Iberdrola, UIL File Merger Settlement in Connecticut
- IHG LN : InterContinental Hotels poised to clinch acquisition of Fairmont for GBP 1.9bn; eyes Moevenpick 
- ZIL2 GY : ElringKlinger Lowers Outlook for 2015 Adj. Ebit
- LEG GY : LEG Immobilien to see Deutsche Wohnen make voluntary public takeover offer
- LEO GY : Leoni Sees 2016 Consolidated Revenue ~EU4.8b, Saw EU5b
- RL US : Barron's Article, overseas expansion and rising margins could lift the stock 20% or more.
- CFR VX : Jaeger May Sell Regent St. Lease to Coach, Relocate:Sunday Times
- ROG VX : Roche’s Esbriet Reduces Risk of Death by 38% After 2 Yrs: Study
- VOD LN : Vodafone Considers Selling Minority Stake in Indian Unit: Times
- VOW3 GY : Volkswagen Sued Over Claims Its Cars Cheat on Emissions Testing
- VOW3 GY : Volkswagen Plans to Buy Red Bull Formula 1 Team, BBC Says
- VOW3 GY : Volkswagen CEO Says Personally Sorry for Broken Trust

>>> InterContinental Hotels poised to clinch acquisition of Fair

InterContinental Hotels poised to clinch acquisition of Fairmont for GBP 1.9bn; eyes Moevenpick 

InterContinental Hotels Group (IHG) has beaten competing bidders for the Canada-based hotel operator Fairmont, The Sunday Times reported.

The report cited City sources who said the GBP 1.9bn (USD 3bn) deal is expected to be tied up in the next few weeks.

The underbidders are believed to include trade groups Accor of France and New Jersey-based Wyndham, the report said. Toronto-headquartered FRHI put Fairmont on the market several months ago, the item noted.

Banking sources cited in the piece said IHG is also in pursuit of the Switzerland-based hotel operator Moevenpick.

Sunday Times

>>> LEG Immobilien to see Deutsche Wohnen make voluntary public takeover offer

LEG Immobilien to see Deutsche Wohnen make voluntary public takeover offer
On September 20, 2015 Deutsche Wohnen AG [DWNI:GR ] decided to make a voluntary public takeover offer to all shareholders of LEG Immobilien AG [LEG:GR] with its registered office in Düsseldorf to acquire their no-par value registered shares in LEG Immobilien AG (by way of an exchange offer), each representing a pro rata amount of the registered share capital of EUR 1.00 (ISIN DE000LEG1110) (the 'LEG-Shares').

In exchange for each LEG-Share tendered to Deutsche Wohnen AG, Deutsche Wohnen AG will offer 3.30 new no-par value bearer shares in Deutsche Wohnen AG as consideration, each representing a pro rata amount of the registered share capital in Deutsche Wohnen AG of EUR 1.00 with dividend rights as of January 1, 2015 (the 'Deutsche Wohnen-Shares'), subject to the final determination of the minimum price and the final terms set forth in the offer document. Deutsche Wohnen AG will appoint two trustees for the required capital increase.

The public takeover offer will presumably be made subject to, inter alia, antitrust clearance (if clearance has not been granted by the time of the publication of the offer document), a minimum acceptance rate of 50% plus one share of the outstanding LEG-Shares as well as the registration of the implementation of the above-mentioned capital increase. Otherwise, the public takeover offer will be made in accordance with the terms and conditions set out in the offer document. Furthermore, insofar as legally permissible, Deutsche Wohnen AG reserves the right to deviate in the final terms of the public takeover offer from the basic information described herein.

NY Post ; Inside the emotional $9.8B sale of Cablevision

No one can complain about slow speeds when it comes to Cablevision’s sale to French-Israeli Patrick Drahi’s Altice.
The ultra-quiet talks began in June, and a deal was agreed to by the end of August. Sources tell On the Money that Drahi brought his son to meet Charles Dolan, and then later spent some time floating around the Mediterranean on a yacht with James Dolan before getting the signatures on the contract.
We hear the sale was an emotional journey on both sides, with Charles Dolan struggling to let go of a company he started in 1973. Many of the people who work there are like family to him, we are told.
Meanwhile, for Drahi, the deal was emotional because it’s the beginning of his own American dream and his first venture in New York. The bike-riding Drahi is well known for shunning all corporate excess. No one at Altice has a secretary. He spent time walking all over the city last week, and attended his first major investor conference at Goldman Sachs. When meetings were too far to walk to, he ordered an Uber car.

WSJ : Volkswagen Halts Sales of Some New, Used Cars in U.S.

Volkswagen Halts Sales of Some New, Used Cars in U.S.

Sales halt began Friday in light of U.S. investigation into allegations of emissions data manipulation

BERLIN— Volkswagen AG has suspended sales in the U.S. of all vehicles containing its popular four-cyclinder TDI engine in light of a U.S. investigation into allegations that the German car maker manipulated emissions data to get around U.S. antipollution rules, a company spokesman said Sunday.

A spokesman said the sales stop affects Volkswagen’s 2016 and 2015 vehicles at U.S. dealerships, but couldn't say how many cars are affected. The 2.0 liter TDI—turbo direct injection—is Volkswagen’s “clean diesel” engine and is commonly used in models such as VW’s Golf, Jetta, Passat, Beetle and the A3 luxury compact made by VW’s Audi AG.

The U.S. Environmental Protection Agency last week alleged Volkswagen used software to circumvent environmental standards in emissions tests. Officials said the software made some 482,000 diesel cars seem to run cleaner when tested than they actually did. U.S. laws require vehicle manufacturers to disclose design information to receive certification that their products meet standards on air pollution.

Volkswagen also said Sunday that it has launched an external investigation into the issue and that the company would cooperate fully with U.S. authorities.

“I personally am deeply sorry that we have broken the trust of our customers and the public,” CEO Martin Winterkorn said in a statement.

>>> Altria hires Perella Weinberg and Credit Suisse advisers, prompting talk of

Altria hires Perella Weinberg and Credit Suisse advisers, prompting talk of SABMiller stake sale; AB InBev may move tax base
Altria (NYSE: MO), the Richmond, Virginia-based parent of Philip Morris tobacco company, has engaged Perella Weinberg and Credit Suisse as advisers, The Sunday Times reported. The appointment has fuelled speculation that Altria is considering a sale of its 27% holding in the UK-based brewing group SABMiller (LON: SAB), which has been approached for takeover by rival brewer Anheuser-Busch InBev (EBR: ABI) of Belgium, the report said.

In the event that Altria opts to dispose of its SABMiller stake, the British brewing company would likely find it impossible to defend itself against AB InBev, the item reported.

According to Wall Street sources cited in the piece, Altria does not believe its own interests are best represented by SABMiller’s board-appointed advisers, including JPMorgan and Morgan Stanley, and so has made its own appointments.

Any sale is likely to see Altria exchange its shares for stock in AB InBev, thus avoiding a significant taxation charge, the report said. A market source cited in the article said Altria is likely to demand a board seat at the merged brewing business, which is expected to have an approximately GBP 177bn valuation.

The second-biggest shareholder in SABMiller, the Santo Domingo family of Colombia, who own a 14% stake, is thought also to be coming around to the idea of selling their holding, the item reported. People with close links to SABMiller pointed out that Altria and the Santo Domingos’ combined holding is still less than a majority, the report said.

Meanwhile, The Sunday Telegraph reported that AB InBev is looking at relocating its tax domicile from Belgium to the UK if its takeover succeeds, to avoid saddling SABMiller investors with a major tax bill on dividends in the future.

The Telegraph report said AB InBev is believed to have secured the blessing of the San Domingos and Altria prior to its approach to SABMiller. According to unspecified sources, the board of SABMiller does not want to cede to AB InBev too quickly but is open to negotiations and could make a further announcement in the next few days.

Sunday Times, Sunday Telegraph

>>> Moody's cuts France sovereign debt rating one notch to Aa2 from Aa1; revises

Moody's cuts France sovereign debt rating one notch to Aa2 from Aa1; revises outlook to Stable from Negative 
"The key interrelated drivers of today's action are the continuing weakness in France's medium-term growth outlook, which Moody's expects will extend through the remainder of this decade; and the challenges that low growth, coupled with institutional and political constraints, poses for the material reduction in the government's high debt burden over the remainder of this decade."