>>> NH Hotels makes surprise bid for Una Hotels

NH Hotels makes surprise bid for Una Hotels

NH Hotels, the Spanish hotel chain, has made an offer for Una Hotels, the privately held Italian hotel chain, Italian language daily Milano Finanza reported. The report cited sources close to the dossier who said that NH Hotels is bidding together with an institutional investor

The offer has come as a surprise, since Una Hotels is holding exclusive merger negotiations with Atahotels, the chain owned by Unipol-Sai, the insurance subsidiary of the Unipol financial services group. The report said that the Atahotels offer could be in the region of EUR 200m, but that the NH Hotels offer is believed to be higher.

There is no guarantee that the NH Hotels offer will re-open the race, as exclusive negotiations with Atahotels have been going on for months, the paper said.

As previously reported, Una Hotels has bank debts of EUR 500m, primarily owed to Unicredit, BMPS and Unipol, as previously reported. The report said the banks control Una via Fenice Holding.

Milano Finanza daily edition

>>> STMicroelectronics may sell off digital products division-Carlo Festa Blog

STMicroelectronics may sell off digital products division

STMicroelectronics, the listed Swiss-Italian electronic chip manufacturer, could sell off its digital products division, the Italian-language Carlo Festa blog reported. The report cited unspecified rumours noting that either a sale or a strategic partnership was an option.

The report said that the division is less profitable than the rest of STMicroelectronics.

STMicroelectronics has a market cap of EUR 6.4bn.

Link to original source

Carlo Festa Blog

FT : Edizione’s sale of a stake in WDF to Dufry


Sir, In relation to the sale to Dufry of the 50.1 per cent equity stake in World Duty Free group held by Edizione, the FT quotes an undisclosed representative of the Chinese group Boyu Capital (one of the bidders for the acquisition of the stake) who said “the conditions in our offer were not different at all from those given in the winning offer” (“Italy urged to investigate World Duty Free auction”, May 11).
Such a statement (which, in our view, might misleadingly appear validated by your indication that Boyu’s offer documents had been reviewed by you) is not true. In fact, Boyu’s offer, contrary to Dufry’s, was conditional on obtaining the prior consent of certain airport operators to the change of control of WDF resulting from the disposition of the equity stake referred to above. In particular, under Boyu’s offer, the closing of such disposition was subject to the unconditional waiver by the airport operators of the change of control restrictions contained in the concession agreements relating to five airports representing about 40 per cent and about 50 per cent of WDF’s consolidated turnover and consolidated Ebitda.
Dufry’s offer, instead, did not contain conditions relating to the change of control of WDF, but only the following two conditions to closing, already disclosed to the market: the approval, by Dufry’s shareholders, of a capital increase aimed at partially financing the proposed acquisition (approval granted by Dufry’s shareholders’ meeting held on April 29 2015); and the obtaining of the usual authorisations by the competent antitrust authorities.

>>> Banco Popolare CEO says BPM preferred merger candidate-Il Sole 24 Ore

Banco Popolare CEO says BPM preferred merger candidate

Pier Francesco Saviotti, the CEO of listed Italian cooperative bank Banco Popolare, has said that his preferred candidate for a merger is listed Italian cooperative bank BPM. In a long interview with Italian language daily Il Sole 24 Ore, Saviotti said that there was nothing concrete on the table but that Banco Popolare was talking to “everybody”, as BPM was not the only option available.

Saviotti refused to be drawn when asked if listed Italian cooperative bank UBI Banca and unlisted Italian cooperative lender Veneto Banca were possible merger candidates.

Saviotti told Il Sole that the appointment of a financial advisor on the matter would show that Banco Popolare had found a “serious opportunity” and that matters could proceed further.

BPM has a market cap of EUR 4.13bn

Sourced from print copy: pge 28
Il Sole 24 Ore

(BFW) EU to Keep Roaming Fees Even After Planned Abolishment: Bild

EU to Keep Roaming Fees Even After Planned Abolishment: Bild
2015-05-15 05:24:53.522 GMT


By Sheenagh Matthews
(Bloomberg) -- European telephone customers abroad in the
EU will pay a rate called “roam like at home” to a certain
limit, after which roaming fees will still be due, Bild said,
citing a European council document dated April 27.
* From Jan. 1 customers calling from abroad will get 50
minutes and 50 text messages a yr at same rate as home
* EU commission and parliament had planned to abolish roaming
fees by July 2016


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

To contact the reporter on this story:
Sheenagh Matthews in Frankfurt at +49-69-92041-217 or
smatthews6@bloomberg.net
To contact the editor responsible for this story:
Simon Thiel at +44-20-3525-2814 or
sthiel1@bloomberg.net

>>> Asian Update

Asian Mid-session Update: Kospi retreats as BOK stands pat with a more neutral view; IPO demand drags down Shanghai Composite

***Economic Data***
- (KR) BANK OF KOREA (BOK) LEAVES 7-DAY REPO RATE AT 1.75% (AS EXPECTED)
- (CN) CHINA APR FOREIGN DIRECT INVESTMENT (FDI ) Y/Y: 10.5% V 2.2% PRIOR
- (JP) JAPAN APR CGPI (PPI) M/M: 0.1% V 0.1%E; Y/Y: -2.1% V -2.1%E (biggest decline since Aug 2012)
- (JP) JAPAN MAR LOANS & DISCOUNTS CORP Y/Y: 3.0% V 3.2% RIOR
- (ID) INDONESIA APR TRADE BALANCE: $0.5B V $0.1BE
- (PE) PERU CENTRAL BANK LEAVES REFERENCE RATE UNCHANGED AT 3.25%, AS EXPECTED
- (CL) CHILE CENTRAL BANK (BCCH) LEAVES OVERNIGHT RATE TARGET UNCHANGED AT 3.00%, AS EXPECTED

***Index Snapshot (as of 03:30 GMT)***
- Nikkei225 +0.5%, S&P/ASX +0.4%, Kospi -0.5%, Shanghai Composite -1.4%, Hang Seng +0.4%, Jun S&P500 flat at 2,118

***Commodities/Fixed Income***
- Jun gold -0.1% at $1,220/oz, Jun crude oil flat at $59.73/brl, Jul copper flat at $2.92/lb
- GLD: SPDR Gold Trust ETF daily holdings fall 4.4 tonnes to 723.9 tonnes; lowest since Jan 15th
- SLV: iShares Silver Trust ETF daily holdings fall to 9,976 from 10,035 - update
- USD/CNY: PBoC sets yuan mid point at 6.1085 v 6.1093 prior setting; Strongest Yuan setting since Feb 2014
- (JP) BOJ offers to buy ¥375B in 1-3yr JGBs, ¥375B in 3-5yr JGBs, ¥240B in 10-25yr JGBs, and ¥140B in JGBs with maturity over 25-yr
- (AU) Australia MoF (AOFM) sells A$700B in 2021 Bonds; avg yield: 2.456%; bid-to-cover: 3.15x
- (US) Weekly Fed Balance Sheet Total Assets for week ending May 13th: $4.50T v $4.47T prior; M1 y/y change: 9.1% v 6.7% w/w; M2 y/y change: 5.7% v 5.4% w/w

***Market Focal Points/FX***
- Asian indices are mixed despite strong rally on Wall St, where S&P500 closed at record highs and Treasuries stabilized after softer than expected PPI numbers led to expectations of a more benign Fed. Shanghai Composite is the biggest loser in the region - profit taking after an otherwise impressive week has set in as investors fret that strong demand for IPOs today would dilute the index valuations and detract from other securities. The selling was undeterred despite comments from Premier Li calling for measures to counter downside pressure on economy building from slowing fixed asset investment. Recall this week's data showed property investment growth slowing to a 6-year low.

- Korea's Kospi was also a notable decliner, reversing the opening gains after Bank of Korea policy decision saw no change in rates. BOK reiterated that output gap would persist for some time but was also somewhat more hawkish, noting economy is showing signs of recovery and sentiment has improved. One board member dissented, but BOK Gov Lee expressed more concern over rising household debt that is likely being fuelled by low rates. BOK also noted that weak JPY still poses an impediment to Korean exports.

- Nikkei225 outperformed, tracking weaker JPY with USD/JPY rising about 30pips toward 119.50. With the effect of consumption tax rolling off in May, wholesale inflation fell sharply to -2.2%, which does not bode well for CPI figures in late May. Despite the warning signs, BOJ Gov Kuroda reiterated that no further easing is required at this time, but also noted the central bank will not hesitate to adjust policy. Kuroda added that exports are finally on the rise.

- In other USD majors, the greenback firmed against NZD after reports that Fonterra reduced the volumes of GDT auctions on sliding demand. NZD/USD fell nearly 50pips to $0.7450 on the news, while AUD/USD tracked with a 40pip drop below $0.8050.

***Equities***
Notable US equities / ADRs after-hours:
- BSQR: Reports Q1 $0.15 v $0.03 y/y, R$26.3M v $25.6M y/y; +33.0% afterhours
- AMAT: Reports Q2 $0.29 v $0.28e, R$2.44B v $2.40Be; +3.2% afterhours
- SYMC: Reports Q4 $0.43 v $0.44e, R$1.55B v $1.56Be; Guides Q1 $0.41-0.44 v $0.46e, R$1.50-1.54B v $1.64Be; -2.5% afterhours
- WB: Reports Q1 $0.01 v -$0.03 y/y, R$96.3M v $67.5M y/y; Guides Q2 R$102-105M v $110Me; -3.9% afterhours
- KING: Reports Q1 $0.61 v $0.54e, R$570M v $592Me; -10.3% afterhours
- LOCO: Reports Q1 $0.18 v $0.17e, R$90.4M v $88.4Me; -13.1% afterhours

Asia movers by sector:
- Materials: MTS.AU Metcash +11% (Hires advisor on strategic review and possible IPO of automotive division)
- Consumer Discretionary: 4324.JP Dentsu +13% (FY14/15 results)
- Tech: 7731.JP Nikon -12.7% (FY14/15 results); 6753.JP Sharp -9% (FY14/15 results)

>>> US fter Hours Summary: BSQR +32%, SANW +13.3%, EMAN +8.7%, ZBB -1

After Hours Summary: BSQR +32%, SANW +13.3%, EMAN +8.7%, ZBB -15.9%, LOCO -13%, KING -10.9% following earnings/guidance

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings: BSQR +32%, SANW +13.3%, EMAN +8.7%, UPLD +8.2%, ISNS +5.2%, SZMK +5.1%, ONTX +5.1%, AMAT +2.6%, GLOB +1.3%, PRTY +1.2%, JWN +1.1%, HTZ +1%, SINA +0.7%, ENSV +0.6%, HOLI +0.5%

Companies trading higher in after hours in reaction to news: BAGR +13.0% (to acquire eighteen Buffalo Wild Wings restaurants (BWLD) for $54 mln), UPLD +8.2% (announced $60 mln credit facility for acquisitions; co also reported earnings), TCON +7.7% (announced that TRC105 has received FDA fast track designation), ESI +5.1% (disclosed confirmation of SEC complaint against it and various of its officers; co intends to defend itself against the "unjustified charges"), SZMK +5.1% (acquires mobile advertising demand side platform, StrikeAd; co also reported earnings), BDSI +3.8% (co and Endo Pharma (ENDP) presented pivotal data from two Phase 3 trials demonstrating safety and efficacy of Buprenorphine HCl Buccal Film), NRZ +3.7% (increased quarterly dividend to $0.45/share from $0.38/share), AMCC +2.7% (Kingdom Ridge Capital discloses 9.85% active stake in 13D filing; Christopher Zepf to join Board), SSE +1.5% (announced entrance into $100 mln in junior lien financing under its term loan facility with BlueMeridian Capital)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings: ZBB -15.9%, LOCO -13%, KING -10.9%, WLDN -5.1%, ANET -4.7%, MARA -4.4%, DDS -4.2%, WB -4%, EXP -3.6%, DAR -3.5%, SYMC -3.4%, VCEL -1.8%, RTNB -0.9%, JST -0.4%, INCR -0.1%,

Companies trading lower in after hours in reaction to news: PAYC -7.0% (announced 8 mln share offering of common stock by selling stockholders), UGI -2.3% (announced plans to build an LNG plant in Wyoming County, PA, expecting a total capital investment of ~$60 million), IPWR -1.5% (announced plans to offer shares of its common stock in an underwritten public offering), HCP -1.1% (priced its offering of $750 mln of 4.00% senior unsecured notes due 2025) 

(BN) Heineken Stake Offers Femsa Billions for Needed Deals: Real M&A


Heineken Stake Offers Femsa Billions for Needed Deals: Real M&A
2015-05-14 23:02:28.435 GMT


(For a Real M&A column news alert: {SALT REALMNA <GO>}.)

By Jonathan Levin
(Bloomberg) -- Mexican conglomerate Fomento Economico
Mexicano SAB is a step closer to freeing up billions in fresh
cash, just when it may need the money.
The $34 billion company, known as Femsa, can now sell
shares from its 20 percent holding in brewer Heineken NV after a
lockup on the stake expired at the end of April. Femsa acquired
it five years ago in a swap for its Mexican beer business. The
position has appreciated in that time to about $9 billion as
Heineken’s stock more than doubled. The stake, combined with
Femsa’s existing cash, gives it more than $11 billion in
ammunition for M&A.
“Femsa doesn’t like to own things that they really can’t
control,” Lauren Torres, a New York-based analyst at UBS AG,
said of the Heineken shares. “If they could parlay it into
something that could give them another round of great returns,
because they know that there’s another opportunity out there,
then they’re going to do it.”
Acquisitions could shore up growth prospects that have
moderated as the company’s Oxxo convenience-store business finds
fewer Mexican street corners where it has yet to plant its flag.
One option is to pursue a bigger slice of the fragmented Latin
American pharmacy business, taking advantage of Femsa’s
experience in small-format retail. Or it could add to its Coca-
Cola bottling operations.

Weighing Alternatives

Chief Financial Officer Daniel Alberto Rodriguez Cofre said
on an April 30 conference call that the expiration of the lockup
was “not lost on us.” He added the company doesn’t envision a
change in the Heineken holding in the “short term.”
Femsa “still has a very strong balance sheet” and doesn’t
foresee needing to sell the stake.
“Having said that, obviously, we always have the
responsibility to look for alternatives and benchmark those
alternatives with Heineken shares,” he said.
A representative for Femsa declined to comment when reached
on May 11.
Over the past decade, Femsa’s market value has grown about
ninefold as management expanded the company’s Oxxo empire to
about 13,000 locations. This year, UBS projects Oxxo’s store
count will grow 9 percent, the slowest pace in at least 15
years.
Should Femsa seek to sell its Heineken stake in pursuit of
targets to help boost growth, it could probably find a buyer.
With global beermakers considering consolidation, Heineken
itself could be interested, to keep would-be buyers at bay, as
could possible suitors of the Amsterdam-based brewer. Heineken
last year rebuffed an approach by bigger brewer SABMiller Plc.
Selling the stake would imply paying capital gains taxes on
the profits, and Femsa probably won’t do so before it finds
another way to deploy the proceeds, said Miguel Mayorga, an
analyst at Corporativo GBM SAB.

Drugstore Expansion

The company could pursue a Brazilian drugstore chain such
as Raia Drogasil SA, valued at $4 billion, or closely-held
Drogarias Pacheco, according to a Jan. 30 UBS research note by
analysts including Torres and Alan Alanis. It may also add to
its roughly 800 pharmacies in Mexico or explore more deals for
Coke bottling assets, UBS said. Its Coca-Cola Femsa SAB unit has
used M&A to become the world’s biggest independent bottler of
Coca-Cola Co. products.
Representatives for Raia Drogasil and Drogarias Pacheco
didn’t respond to requests for comment.

Top Player

Femsa is already among the top four players in the Mexican
pharmacy market, along with Farmacias Benavides, Farmacias del
Ahorro and Farmacias Guadalajara, and it may seek further
consolidation, according to UBS. The top four players account
for just 40 percent of the market, it said.
“Long-term growth at Femsa is going to be driven by
inorganic expansion in a significant way,” Corporativo GBM’s
Mayorga said in a telephone interview from Mexico City. “If at
some point one of the big players in Mexico were willing to
sell, I’m sure Femsa would make a serious effort” to make a
deal.
Another possibility is to extend its conquest of the Coca-
Cola bottling system, according to Mayorga. Targets in the
sector could range from closely-held bottlers to Arca
Continental SAB, the second-biggest bottler in Mexico, with a
market value of 158 billion pesos ($10.4 billion), he said.
Credit Suisse Group AG analysts led by Antonio Gonzalez
wrote in an April 30 note that Chilean bottler Embotelladora
Andina SA -- valued at 1.75 trillion Chilean pesos ($2.94
billion) -- is a “key M&A target.”

New Directions

If the conglomerate enters a completely new line of
business, it wouldn’t be the first time. The company started
primarily as a beermaker, then transformed into a retailer and
Coke bottler. It also dabbled in banking along the way. Today,
its other interests include gas stations. It has even proven
willing to explore new parts of the world, with its Coca-Cola
Femsa unit agreeing to buy a 51 percent stake in Coca-Cola
Bottlers Philippines Inc. in 2012.
Femsa has trial stores for its Oxxo format in Colombia, and
it’s currently seeking permission to sell alcohol in Texas,
according to a May 4 regulatory filing. If it gets it, Femsa
said it could invest $850 million to open 900 convenience stores
within 10 years.
“Whether it be the U.S., whether it be Colombia, whether
it be other parts of Latin America, if the economics work then
they’ll do it,” UBS’s Torres said.

For Related News and Information:
Retailer Femsa Emerges as Surprise Winner From Mexico Oil Plans
Mexico’s Femsa Jumps Most Since 2012 on Plan to Buy Gas Stations
Stories on emerging markets: NI EM <GO>
Top stories on Latin America: TOPL <GO>
Stories on emerging-market currencies: TNI EM FRX <GO>
Most-read news on Mexico: MNI MEX <GO>
Top deal news: DTOP <GO>
Real M&A columns: NI REALMNA <GO>

--With assistance from Nacha Cattan in Mexico City.

To contact the reporter on this story:
Jonathan Levin in Rio de Janeiro at +55-21-3956-2527 or
jlevin20@bloomberg.net
To contact the editors responsible for this story:
Beth Williams at +1-212-617-2307 or
bewilliams@bloomberg.net
Elizabeth Wollman

FT : Avon’s mystery caller ramps up shares

Avon’s mystery caller ramps up shares

Shares in Avon Products, the world’s largest door-to-door cosmetics group, surged almost 20 per cent on Thursday and then fell back after a purported $8.2bn bid from an unknown private equity firm proved to be a hoax.
In a superficially plausible-sounding SEC filing, replete with the usual corporate jargon, “PTG Capital Partners” said it would pay $18.75 a share for Avon — roughly three times the price at which it was trading on Thursday morning.

Some 50m shares in the company — famous for its 1954 “Avon calling” advertising campaign — changed hands at up to $8 a share and trading was briefly halted before the stock fell back as doubts grew about the veracity of the filing. By the close of trading the shares were still up 6 per cent at $7.07.
PTG’s filing directed enquiries to its offices in the Stock Exchange Tower in London or to its general counsel, Steve Kohe. A call to Mr Kohe went to voicemail: “You have reached PTG Capital Partners. Please leave a message.”
Avon, which has suffered three straight years of losses and declining sales, said an hour and a half later that PTG’s filing appeared to be a hoax: “Avon reports that it has not received any offer or other communication from such an entity and has not been able to confirm that such an entity exists.”
Whoever went to the trouble of faking the filing and setting up a voicemail box for Mr Kohe was not as painstaking in the proofreading. “PTG” twice referred to itself as “TPG” and language in the document appeared to have been lifted from earlier releases from the real private equity firm of that name.
The New York Stock Exchange and the SEC declined to comment.
Avon has been hit by lower sales in emerging markets and allegations of bribery in China. The company reported a $147m loss on sales of $1.8bn in the first quarter. Last month it was reported that the company was exploring the sale of its North American business as part of a strategic overhaul. Avon derived just 13.6 per cent of its overall sales from the region last year.
“Based on our fundamental work, it is hard to see how a buyer could value (Avon) at $18.75,” wrote Nik Modi, analyst at RBC, in a note.

If the PTG “bid” was a scam to allow a trader to profit from the ensuing run-up in the share price, it will be the latest in a long line of such hoaxes, raising questions about how such a filing could get through.
In 1989, stocks in Pan Am and NWA, parent of Northwest Airlines, were halted after Reuters reported on a fake takeover bid for both companies. Last year the SEC alleged that a man who profited from selling stock in Allied Nevada Gold after making a fake $750m bid for the company had fled to China.