>>> US Early premarket gappers

Early premarket gappers

Gapping up: ONTY +46.2%, ANR +24.7%, EXEL +17.1%, YGE +13.9%, IMGN +10%, CTIC +6.7%, ALTR +5.9%, GALE +5.1%, CLDX +3.9%, CLDX +3.9%, SFUN +3%, CLF +2.8%, BYD +2.7%, SD +2.5%, FRO +2.3%, PSTI +2.2%, LFC +2.1%, YOKU +2%, GZT +1.9%, SPNS +1.8%, MOH +1.7%, BMY +1.5%, NBG +1.5%, C +1.5%, VALE +1.3%

Gapping down: CLVS -5.9%, MCP -5.7%, BAMM -4.8%, STO -2.9%, AU -2.4%, GFI -2.3%, RLJE -2.3%, OPXA -2.2%, DB -1.7%, ING -1.6%, RDS.A -1.4%, CS -1.4%, BHP -1.4%, RIO -1.3%, SDRL -1.3%, PBR -1.2%, MT -1.2%, ESRX -1.2%, BP -1.1%, Z -1.1%, DEG -0.5%

WSJ : CVC Capital in Talks to Buy Control of Cosmetics Retailer Douglas

CVC Capital in Talks to Buy Control of Cosmetics Retailer Douglas
A deal is expected to value Douglas at roughly $3 billion

Private equity firm CVC Capital Partners is in advanced talks to buy a majority stake in German perfume and cosmetics retailer Douglas from rival fund Advent International, in a transaction likely valuing the chain at roughly €2.8 billion ($3.1 billion), according to people familiar with the matter.

A deal could be announced as early as Monday, these people said.

News of the potential deal comes just days after Douglas announced plans to list a minority stake on the stock market this summer. An outright sale, if successful, would replace plans for an IPO.

Advent initially sought a valuation of between €3 billion and €3.5 billion for Douglas, according to executives and people familiar with the matter, well above the apparent current valuation.

Advent and the founding family of Douglas took the retailer private in 2012 for roughly €1.5 billion. They subsequently sold ancillary operations, including jewelry retailer Christ. Douglas last year bought French perfume retailer Nocibé, boosting the number of perfume and cosmetic outlets in its network to roughly 1,700.

CVC is no stranger to the sector. The buyout firm snapped up Denmark’s biggest health and beauty retailer, Matas A/S, for roughly $900 million in 2006. Matas went public again in 2013.

Financial investor KKR & Co. and French Luxury goods giant LVMH Moët Hennessy Louis Vuitton SA have also weighed buying Douglas, people familiar with the matter said earlier.

Douglas said last week that it expected earnings before interest, taxes, depreciation and amortization, or Ebitda, of €274 million for the fiscal year ending September 30.

Record low interest rates and low bond yields have pushed the German DAX30 benchmark index into record territory above 11,500 since March, facilitating initial public offerings. But at the same time, many private equity firms prefer a fast exit via direct sale because an IPO exposes them to volatile stock markets.

Advent has hired Goldman Sachs Group Inc. and J.P. Morgan Chase & Co. to advise on the dual track process. Additionally, Deutsche Bank AG, Credit Suisse AG and Morgan Stanley have been mandated help on a potential IPO, these people say.

(Jefferies) Telecom Italia: Upgrade to Buy: Step Aside "Speculation",

Upgrade to Buy: Step Aside "Speculation", It's "Fundamentals" Turn

--> We've been happy to stand by as low-visibility externalities have driven the TI
share price upwards from distressed levels over the past 12-18 months. This has
now changed. We have sufficient conviction on an orderly "secular catch-up"
story in Italy to argue that the multiple is too low. We upgrade TI to Buy.

Mobile-fixed substitution: we believe that TI's "flatisation" strategy will effectively
address chronic churn in the single-play fixed voice segment. Billing simplicity and pricing
visibility will drive a shift in the value-perception of fixed voice while we see back-book repricing
risk as low. This troublesome segment will see lower churn and contribute to TI's
wider secular catch-up opportunity in fixed.

Secular catch-up: TI's fibre investment should kick-start a secular catch-up in fixed services
in Italy. Zero-premium promotional pricing for fibre along with the de facto bundling of Sky
for free in the first year should drive broadband market growth and see Italy close the gap
on peers. OTT product launches should only add to momentum.

Competition: There is clear evidence of an intensification in retail competition, especially
from Vodafone, and increasingly on the back of owned-infrastructure, exacerbating the risk.
We look at the revenue impact of winning / losing / migrating existing retail and wholesale
subscribers for TI. We note that where revenue risk is largest, it is typically mitigated by the
limited number of homes in which that event could occur. This is before we consider market
growth too, where TI can monetise fibre through retail gains (obviously) and "favourable"
wholesale fibre pricing.

Cost-cutting provides comfort: TI's track record to date suggests it will deliver its
ambitious target of €1bn in opex saving (equal to 12% of the FY14 domestic cost base).
Notwithstanding, our forecasts imply only ~€450m in domestic opex reduction, giving
scope for TI to accommodate any increase in competition as it (and others) ramps
convergence. If none should emerge, there is obviously upside to our €1.35 price target
(€1.60).

Valuation/Risks
TI's discount has contracted meaningfully over the past year (2015 EV / EBITDA of 6.0x,
sector on 7.3x) as TIM Brazil bid speculation and other externalities have served to reduce a
high leverage / chronic earnings risk story. We believe it is now time for TI's fundamentals
to take over the re-rating. Our price target for TI is based on a DCF-based SoTP analysis. Key
risks are BRLEUR weakness and domestic competition.

(BFW) Nokia Unveils Data Center Package for IT, Telecom

Nokia Unveils Data Center Package for IT, Telecom
2015-06-01 10:00:00.3 GMT


By Kasper Viita
(Bloomberg) -- Nokia AirFrame data center solution includes
cloud servers, switches and services, co. says in e-mailed
statement.

* Able to run most common IT cloud applications in parallel to
telco cloud
* Available now, first sales expected in 4Q
* Enables operators to expand into new business models, such
as renting data center capacity for customers’ IT
applications; helps deal with rising data traffic
* Intel processors, virtualization technologies used
* Call at 2pm Helsinki time


For Related News and Information:
First Word scrolling panel: FIRST<GO>
First Word newswire: NH BFW<GO>

To contact the reporter on this story:
Kasper Viita in London at +44-203-525-9219 or
kviita1@bloomberg.net
To contact the editor responsible for this story:
James Ludden at +44-20-3525-2645 or
jludden@bloomberg.net

>>> PBoC said to have recently provided pledged supply lending (PSL) facility to

PBoC said to have recently provided pledged supply lending (PSL) facility to select banks (targeted move) - financial press 

**Note: Today's report, follows speculation from last week that the PBoC was said to have used repos with certain banks to drain liquidity in a targeted manner. 
- In the past, PBOC officials have repeatedly said that they would use targeted measures for the economy.
- In terms of the SLF, the end of April balance for the facility was zero as the PBoC did not roll over the SLF operations which matured in April; SLF outstanding as of the end of March was CNY170B.
- The SLF is used to inject short-term funds and works in a similar manner to the Fed's discount window or ECB's marginal lending facility.

(BarCap) ALtice : Stay EW - PT raised from €95 to €100

ALtice - Suddenly Suddenlink
Following Altice’s announcement of its acquisition of 70% of Suddenlink for $9.1bn and Friday’s indicative pricing of acquisition debt, we publish pro-forma forecasts that imply c.20% accretion to EFCF and 2016E post transaction trading multiples 10.0x EV/EBITDA and 17x EV/OpFCF, i.e. c. -0.2x and -0.8x turn lower vs. headline. Our deep dive into Suddenlink operations suggest a well invested and managed asset, delivering c.6% headline revenue and EBITDA growth over the past two years. We revisit Israeli and Portuguese trends, where markets and organic trends remain tough.