US After Hours KOPN +16.7%, HLF +15.2%, EA +3.9%, ANAD -21.5%, ZU -18.4%, NDLS -17.9% following earnings/guidance..and also BRDR +102.7% (to be acquired by Pitney Bowes (PBI) for $14 per share in cash or ~$395 mln; co also reported earnings), MGI +37.1% (seeing reports that Western Union (WU) is in early talks to acquire the company), LOCM +13.6% (disclosed an amendment to Google Services Agreement; amendment provides for an extension of the agreement until March 31, 2018), PACB +12.4% (achieved second development milestone in clinical diagnostics agreement with Roche (RHHBY); $10 mln milestone payment brings total funding to date from RHHBY up to $55 mln)...ARDX -25.6% (announced results from its Phase 2a clinical trial evaluating Tenapanor in Chronic Kidney disease patients; trial did not meet the primary endpoint of decreasing the urinary albumin-creatinine ratio in treated patients), WLT -10.9% (discussed Going concern issues in 10-Q)
>>> Up
*AFRICA OIL RAISED TO OVERWEIGHT VS EQUALWEIGHT AT BARCLAYS
*BALOISE RAISED TO BUY VS HOLD AT BERENBERG
*DEUTZ RAISED TO BUY VS HOLD AT KEPLER CHEUVREUX
*MEDIVIR RAISED TO HOLD AT NORDEA
*METRO RAISED TO NEUTRAL VS UNDERWEIGHT AT JPMORGAN
*NORDEX RAISED TO BUY VS HOLD AT DEUTSCHE BANK
*QIWI RAISED TO BUY VS NEUTRAL AT UBS
*YANDEX RAISED TO BUY VS NEUTRAL AT UBS
>>> Down
*AQUARIUS PLATINUM CUT TO SECTOR PERFORM VS OUTPERFORM AT RBC
*ALLIANZ CUT TO UNDERWEIGHT VS NEUTRAL AT JPMORGAN
*COMMERZBANK CUT TO EQUAL WEIGHT AT MORGAN STANLEY
*FIRST QUANTUM MINERALS CUT TO NEUTRAL VS BUY AT NOMURA
*LIBERBANK CUT TO HOLD VS BUY AT SOCGEN
>>> PT Change
>>> Initiation
*ANGLO AMERICAN RATED NEW OUTPERFORM AT RBC
*HOIST FINANCE AB RATED NEW BUY AT CITI, PT SEK80
*SAFESTYLE RATED NEW BUY AT CANTOR FITZGERALD, PT 220P
>>> Call
German Car Makers Preparing Formal Bid for Nokia’s Here Map Service With China’s Baidu
BMW, Audi, and Mercedes-Benz eager to acquire technology needed to run self-driving cars
Germany’s big-three premium-brand auto makers are preparing to launch a formal bid to acquire a majority stake in Nokia Corp.’s Here mapping unit, in a consortium that includes Chinese technology group Baidu Inc. and values Here at “considerably more than €2 billion,” according to people familiar with the situation.
BMW AG, Audi AG, and Daimler AG’s Mercedes-Benz are usually fierce rivals in the market for luxury automobiles. But they are so worried about Silicon Valley’s ambitions that they are banding together to acquire Nokia’s mapping unit to prevent a technology giant such as Google Inc.,Apple Inc. or Facebook Inc. from gaining control of a key part of the technology needed to run self-driving cars and in-car digital services.
“The greatest threat to the automobile industry would be if Google developed an operating system for self-driving cars and made it available free to everyone,” said a person familiar with the situation. “We need the map for the operating system in the cars.”
Talks have reached an advanced stage and are likely to conclude within the next two weeks, according to people familiar with the situation. Specific details such as price and the distribution of specific stakes are still in flux, these people said.
The German car makers are aiming to acquire a controlling majority. Baidu and an undisclosed financial investor in the group would acquire minority stakes. Nokia would retain a minority stake.
Nokia, which last month raised the possibility of selling Here, said during its annual shareholders meeting on Tuesday that it could still decide to keep the mapping service.
But people familiar with the situation said the company is negotiating to sell most of Here and is confident that the German-led consortium could easily finance and quickly close a deal and that the Germans will invest in the business.
A second investor group made up of several undisclosed private-equity investors is looking to finance an acquisition of Here using debt, which one person said could make it difficult for Here to invest in its growth.
Nokia declined to comment.
The German auto makers hope to stay a step ahead of Google by taking control of Nokia’s Here, which one person described as the most advanced digital mapping service in the world. The car makers plan to invest further in the service to transform it into the eyes and ears of self-driven cars and the foundation to develop in-car digital services.
Separately, Audi is expected to announce a “far-reaching cooperation” with China’s Baidu at the China CES consumer electronics show in Shanghai later this month, the person said. Baidu is an important partner because it is creating a high definition map of China, the world’s biggest car market by sales. Google is not allowed to map China.
Under the agreement with the German consortium, Baidu can use Here’s technology only in China. Baidu declined to comment.
Another person familiar with the car makers’ plans said the consortium of German premium car makers approached German Chancellor Angela Merkel, asking her to encourage the Finnish government to back the German bid. It is unclear whether Ms. Merkel acted on the request. Nokia is based in Espoo, Finland.
The German government declined to comment.
German auto makers began thinking about acquiring the Here business after Nokia announced on April 15 that it would conduct a “review of strategic options, including a potential divestment” of Here. The review was prompted by Nokia’s deal to acquire network equipment maker Alcatel-Lucent.
Nokia saw Here as a strategic asset for its mobile-phone business. In 2008, Nokia expanded the service with the acquisition of a company called Navteq to help it integrate the mapping services in Nokia’s mobile phones. After Nokia sold its mobile-phone business, it began to question Here’s strategic rationale.
Here generated a loss of €32 million last year, but the business is growing. It generated revenue of €970 million in 2014, an increase of 6% from the year before. Nokia has identified Here’s fair value at about €2 billion, or $2.24 billion.
In addition to the German auto makers, Here’s customers include General Motors Co, Ford Motor Co, Jaguar Land Rover, Honda Motor Co, Nissan Motor Co and Renault SA. Here says it controls about 80% of the market for on-board navigation systems in cars in the U.S. and Europe.
On April 29, Nokia executives discussed a potential sale of a majority stake in Here with negotiators representing the German car maker consortium, one person familiar with the talks said. The talks focused on price and on the concern of the German car makers that a sale of Here to a U.S. technology company could pose a competitive threat to European auto makers.
Another person familiar with those talks said the German car makers, a large customer of the Here service, threatened to stop using the service if it were sold to a company like Facebook or Uber Technologies Inc. The German car makers have since toned down their language, fearing such threats could lead to suspicion they are building a cartel, the person said.
Asian Mid-session Update: China services PMI climbs to 4-month high; NZD weighted down by unemployment data
***Economic Data***
(HK) HONG KONG APR HSBC PMI: 48.6 V 49.6 PRIOR; 2nd month of contraction and lowest since Oct 2014
*(CN) CHINA APR HSBC SERVICES PMI: 52.9 V 52.3 PRIOR; 4-month high
*(AU) AUSTRALIA MAR RETAIL SALES M/M: 0.3% V 0.4%E (3-month low)
*(AU) AUSTRALIA MAR HIA NEW HOME SALES M/M: 4.4% V 1.1% PRIOR; 13-month high
(CO) Colombia Apr CPI M/M: 0.5% v 0.4%e, Y/Y: 4.6% v 4.4%e
*(UK) UK APR BRC SHOP PRICE INDEX Y/Y: -1.9% V -1.7%E
*(NZ) NEW ZEALAND Q1 EMPLOYMENT CHANGE Q/Q: 0.7% (3-quarter low) V 0.8%E; Y/Y: 3.2% V 3.3%E
*(NZ) NEW ZEALAND Q1 UNEMPLOYMENT RATE: 5.8% (1-year high) V 5.5%E; PARTICIPATION RATE 69.6% V 69.4%E
***Index Snapshot (as of 02:30 GMT)***
- Nikkei225 closed, S&P/ASX -1.6%, Kospi -1.1%, Shanghai Composite +0.8%, Hang Seng +0.6%, Jun S&P500 +0.2% at 2,087
***Commodities/Fixed Income***
- Jun gold +0.1% at $1,194/oz, Jun crude oil +0.8% at $60.88/brl, May copper -0.3% at $2.93/lb
- (CN) PBoC gauges demand for 7-day, 14-day reverse repos, 28-day repos and 91-day bill sales
- USD/CNY: PBoC sets yuan mid point at 6.1156 v 6.1180 prior
- USD/KRW: Onshore opens at KRW1,081 v KRW1,079 prior close
- (HK) Hong Kong Monetary Authority (HKMA) sells HK$1.5B in 10-year government bonds, bid to cover 3.07X
***Market Focal Points/FX***
- Asia equity indices are mostly in red following Wall St selloff. NZD/USD becomes most notable mover in FX space, falling some 50pips below $0.7500 as New Zealand posted its 1-year high unemployment rate 5.8% beating consensus of 5.5% and employment change on quarter falls into 3-quarter low. However, labor force participation rate reached all-time high of 69.6%.
- Australian total value of retail sales was up 0.3% on month in March, missing an increase of 0.4% and down from 0.7% rise in prior month. Moreover, Australian new home sales climbed notably to reach highest level in 4 years. AUD/USD continued its upward trend after the data and RBA rate decision.
- Despite Shanghai and Hang Seng both reversed prior loss, economic data was mixed. China HSBC services PMI hit a 4-month high. HSBC chief economist noted China service sector companies had a strong start to Q2 but more measures may be required to ensure the economy does not slow further from the 7% annual pace of growth registered in Q1. On the contract, Hong Kong PMI continued second contraction and fell to 7-month low. HSBC economist stated Hong Kong's private sector saw a stronger deterioration in overall business conditions and likely to struggle to expand in Q2.
***Equities***
US equities / ADRs:
- EA: Reports Q4 $0.00 v $0.25e, R$640M v $839Me; Raises FY guidance, authorizes $1.0B share buyback (5.4% of market cap); -0.3% afterhours
- FTR: Reports Q1 $0.02 v $0.05e, R$1.37B v $1.40Be; -1.9% afterhours
- BRDR: Pitney Bowes acquires Borderfree for $14.00/shr cash in $395M deal; +5.0% afterhours
- PAA: Reports Q1 $0.35 v $0.56e, R$5.94B v $10.2Be (unclear if comp); +1.3% afterhours
- MYL: Reports Q1 $0.70 v $0.70e, R$1.87B v $2.06Be; Affirms FY guidance; -0.2% afterhours
- CTL: Reports Q1 $0.67 v $0.59e, R$4.45B v $4.48Be; -1.4% afterhours
- PXD: Reports Q1 -$0.03 v $0.06e, R$868M v $725Me; -3.1% afterhours
- ALL: Reports Q1 $1.46 v $1.39e, R$8.95B v $7.77Be; +0.3% afterhours
- CYH: Reports Q1 $0.85 v $0.68e, R$4.91B v $5.02Be; -3.6% afterhours
- DVN: Reports Q1 $0.22 v $0.26e, R$3.27B v $3.86Be; Raises production outlook
- MGI: Reportedly Western Union is in preliminary talks to acquire Moneygram - financial press; -3.1% afterhours
- GRPN: Reports Q1 -$0.02 v $0.02e, R$750M v $800Me; -2.8% afterhours
- AGU: Reports Q1 $0.12 v $0.34e (not comparable), R$2.87B v $3.18Be; -0.9% afterhours
Notable movers by sector:
- Consumer discretionary: Dongfeng Motor 489.HK +1.3% (clarification on merger); Wanda Cinema 002739.CN +9.2% (Apr results)
- Consumer staples: Woolworths WOW.AU -4.2% (Q3 results, cuts jobs)
- Financials: Commonwealth Bank of Australia CBA.AU -4.4% (Q3 results); QBE Insurance Group QBE.AU +1.3% (reaffirms guidance); Shimao Property 813.HK -1.3% (April results); Sunac China 1918.HK +2.3% (Apr results); GPT Group GPT.AU -1.7% (Q1 results)
- Industrials: Boral BLD.AU -1.1% (reaffirms guidance); Air China 601111.CN -0.5%, China Southern Airlines 600029.CN -0.8% (oil price surges)
-Telecom: TPG Telecom TPM.AU +3.9% (Iinet recommends its improved proposal)
- Materials: Glencore 805.HK -0.9% (Q1 production)
-Healthcare: Yunnan Baiyao Group 000538.CN +2.6% (China to lift price control on drugs)
After Hours Summary: KOPN +16.7%, HLF +15.2%, EA +3.9%, ANAD -21.5%, ZU -18.4%, NDLS -17.9% following earnings/guidance
After Hours Gainers:
Companies trading higher in after hours in reaction to earnings: BRDR +102.1%, KOPN +16.7%, HLF +15.2%, PACB +12.4%, ICUI +11.6%, ACLS +10%, ZEN +9.4%, ZAGG +8%, PZZA +6.3%, MM +6.3%, ENPH +5.3%, FOSL +5.2%, QNST +5.1%, WPX +5.1%, TXMD +5%, LC +4.6%, EA +3.9%, CYH +3.8%, VRNG +3.6%, REXX +2.6%, FOLD +2.1%, ZLTQ +1.9%, VVUS +1.3%, HK +0.7%, TEG +0.7%, NVGS +0.7%, HRZN +0.3%, PBPB +0.2%
Companies trading higher in after hours in reaction to news: BRDR +102.7% (to be acquired by Pitney Bowes (PBI) for $14 per share in cash or ~$395 mln; co also reported earnings), MGI +37.1% (seeing reports that Western Union (WU) is in early talks to acquire the company), LOCM +13.6% (disclosed an amendment to Google Services Agreement; amendment provides for an extension of the agreement until March 31, 2018), PACB +12.4% (achieved second development milestone in clinical diagnostics agreement with Roche (RHHBY); $10 mln milestone payment brings total funding to date from RHHBY up to $55 mln), CYTX +5.6% (disclosed that on April 30, 2015, it entered into Amendment One to Joint Venture Termination Agreement with Olympus Corporation to extend its payment obligations under the Agreement), RTRX +4.3% (confirmed FDA Orphan Drug Designation for RE-024 for the treatment of Pantothenate Kinase-Associated Neurodegeneration)
After Hours Losers:
Companies trading lower in after hours in reaction to earnings: ANAD -21.5%, ZU -18.4%, NDLS -17.9%, ATRS -13%, TTGT -11.3%, SKUL -10.3%, TRUP -7.6%, TNET -7.1%, EVOL -5.6%, OCLR -5.3%, KONA -4.5%, CERS -3.8%, COUP -3.6%, OKE -3.3%, RUBI -2.9%, NFX -2.7%, GRPN -2.6%, SM -2.6%, CTLT -2.3%, FTR -1.9%, SAFT -1.9%, XXIA -1.9%, KGC -1.6%, SUPN -1.6%, MYGN -1.6%, SAND -1.5%, OKS -1.1%, WTW -1.1%, NWPX -1%, CLUB -0.9%
Companies trading lower in after hours in reaction to news: ARDX -25.6% (announced results from its Phase 2a clinical trial evaluating Tenapanor in Chronic Kidney disease patients; trial did not meet the primary endpoint of decreasing the urinary albumin-creatinine ratio in treated patients), WLT -10.9% (discussed Going concern issues in 10-Q), ACHC -1.9% (priced 4.5 mln share public offering of common stock at $66.50 per share), ANTM -0.8% (announced a proposed public offering of $900 mln in equity units)
Closing Market Summary: Stocks Slide Amid Rising Yieldsv
The stock market ended the Tuesday session on a sharply lower note following a daylong retreat that was paced by the Nasdaq Composite (-1.6%). For its part, the S&P 500 lost 1.2% with all ten sectors ending in the red.
The Tuesday selloff in U.S. equities followed an overnight session that featured a 4.1% drop in China's Shanghai Composite after some equity brokers increased their margin requirements, which led to forced selling. Furthermore, markets across Europe also struggled with Germany's DAX diving 2.5% amid spiking yields. To that point, Germany's 10-yr bund yield surged 13 basis points to 0.52% after hovering near 0.16% as recently as last week while Italy's 10-yr yield soared 34 basis points to 1.83%.
Rising interest rates were not unique to Europe as the U.S. 10-yr note registered its sixth consecutive decline, sending its yield higher by three basis points to 2.17%. The benchmark yield hit its highest level since early March and spent the day near its 200-day moving average, representing the first appearance near that level in more than a year.
To be sure, U.S. and European yields remain at depressed levels, but that masks the sharp pace at which rates have been increasing as of late. In turn, the sharp rally in yields has made equities less attractive versus Treasuries, which was on full display today with the rate-sensitive utilities sector (-2.3%) leading the stock market lower. Including the decline, the utilities sector is down 7.4% for the year.
Other countercyclical groups ended a bit closer to their flat lines with the health care sector (-1.2%) settling in-line with the broader market even as biotechnology displayed relative weakness. The iShares Nasdaq Biotechnology ETF (IBB 338.00, -7.19) fell 2.1%, distancing itself from the 50-day moving average (349.00), which provided resistance yesterday.
Biotechnology contributed to the underperformance of the Nasdaq while the technology sector (-1.6%) also pressured the index. Large cap names like Apple (AAPL 125.80, -2.90) and Google (GOOGL 543.04, -9.80) both lost near 2.0% while Microsoft (MSFT 47.60, -0.64) climbed off its low after Bloomberg reported the company is interested in Salesforce.com (CRM 72.75, +1.15). Microsoft ended lower by 1.3% while Salesforce.com gained 1.6%.
Similar to technology, the industrial sector (-1.3%) underperformed while consumer discretionary (-1.0%), financials (-0.8%), energy (-1.1%), and materials (-1.1%) ended just ahead of the S&P 500.
Notably, the energy sector spent the bulk of the day in positive territory thanks to crude oil, which rose 2.5% to $60.38/bbl., making its first appearance above $60/bbl since December.
Today's participation was ahead of recent averages with more than 770 million shares changing hands at the NYSE floor.
Economic data was limited to Trade Balance and ISM Services:Tomorrow, the weekly MBA Mortgage Index will be released at 7:00 ET while April ADP Employment Change (Consensus 189K) and Q1 Productivity/Unit Labor Cost Data will be released at 8:15 ET and 8:30 ET, respectively.
- The U.S. trade deficit widened to $51.40 billion in March from an upwardly revised $35.90 billion (from $35.40 billion) in February while the consensus expected an increase to $40.00 billion
- The BEA assumed a March trade deficit of roughly $48.50 billion in the advance Q1 2015 GDP report, but the actual deficit was much larger than expected and will likely lead to a downward revision to GDP growth
- The goods deficit increased to $70.60 billion in March from $55.70 billion, a gain of $14.90 billion, while the services surplus declined by $600 million to $19.20 billion in March
- The spike in the trade deficit shouldn't be too concerning, considering the West Coast port strike caused a pileup of containerships that needed to be unloaded. As dockworkers returned, imports that normally would have come in February were unloaded in March
- The ISM Non-manufacturing Index increased to 57.8 in April from 56.5 in March while the consensus expected a decrease to 56.3
- Production activities improved as the related index increased to 61.6 in April from 57.5 in March
- Nasdaq Composite +4.3% YTD
- S&P 500 +1.5% YTD
- Russell 2000 +1.0% YTD
- Dow Jones Industrial Average +0.6% YTD
Mylan Profit Misses Analysts’ Estimates on Dollar’s Strength (1)
2015-05-05 20:13:40.873 GMT
(Updates with trading in fourth paragraph.)
By Caroline Chen
(Bloomberg) -- Mylan NV, the drugmaker involved in a three-
way takeover fight, reported quarterly profit that missed
analysts’ estimates as the strength of the U.S. dollar cut into
sales abroad.
First-quarter profit excluding certain items was 70 cents a
share, the company said in a statement Tuesday. Analysts had
estimated 71 cents on average, according to data compiled by
Bloomberg. Revenue rose 15 percent to $1.87 billion. Analysts
had predicted $2.05 billion on average.
Mylan, which gets most of its revenue from generic drugs,
has made several unsolicited takeover overtures to Perrigo Co.,
a company that generates about half of its sales from consumer
health-care products. Perrigo has rejected those offers. At the
same time, Mylan is fending off an unwanted acquisition attempt
by Israel’s Teva Pharmaceutical Industries Ltd. Mylan has said
that it wants to stay independent and that a combination with
Teva would face antitrust hurdles.
Mylan, which is run from Canonsburg, Pennsylvania, fell
less than 1 percent in late trading.
Teva had offered $40.1 billion for Mylan last month, or $82
a share in cash and stock. The deal would create a generics
powerhouse with more than $27 billion in annual revenue and re-
establish Teva as the leader in the industry.
Mylan, which offered $32.7 billion in cash and stock in its
latest attempt to acquire Perrigo, found itself rebuffed as its
target said the offer undervalued the company. Teva’s bid for
Mylan was contingent on it ending its pursuit of Perrigo.
For Related News and Information:
Top Stories: TOP<GO>
--With assistance from Niamh Ring in New York.
To contact the reporter on this story:
Caroline Chen in San Francisco at +1-415-617-7211 or
cchen509@bloomberg.net
To contact the editors responsible for this story:
Crayton Harrison at +1-212-617-6145 or
tharrison5@bloomberg.net
Drew Armstrong, Niamh Ring
2015-05-05 20:13:40.873 GMT
(Updates with trading in fourth paragraph.)
By Caroline Chen
(Bloomberg) -- Mylan NV, the drugmaker involved in a three-
way takeover fight, reported quarterly profit that missed
analysts’ estimates as the strength of the U.S. dollar cut into
sales abroad.
First-quarter profit excluding certain items was 70 cents a
share, the company said in a statement Tuesday. Analysts had
estimated 71 cents on average, according to data compiled by
Bloomberg. Revenue rose 15 percent to $1.87 billion. Analysts
had predicted $2.05 billion on average.
Mylan, which gets most of its revenue from generic drugs,
has made several unsolicited takeover overtures to Perrigo Co.,
a company that generates about half of its sales from consumer
health-care products. Perrigo has rejected those offers. At the
same time, Mylan is fending off an unwanted acquisition attempt
by Israel’s Teva Pharmaceutical Industries Ltd. Mylan has said
that it wants to stay independent and that a combination with
Teva would face antitrust hurdles.
Mylan, which is run from Canonsburg, Pennsylvania, fell
less than 1 percent in late trading.
Teva had offered $40.1 billion for Mylan last month, or $82
a share in cash and stock. The deal would create a generics
powerhouse with more than $27 billion in annual revenue and re-
establish Teva as the leader in the industry.
Mylan, which offered $32.7 billion in cash and stock in its
latest attempt to acquire Perrigo, found itself rebuffed as its
target said the offer undervalued the company. Teva’s bid for
Mylan was contingent on it ending its pursuit of Perrigo.
For Related News and Information:
Top Stories: TOP<GO>
--With assistance from Niamh Ring in New York.
To contact the reporter on this story:
Caroline Chen in San Francisco at +1-415-617-7211 or
cchen509@bloomberg.net
To contact the editors responsible for this story:
Crayton Harrison at +1-212-617-6145 or
tharrison5@bloomberg.net
Drew Armstrong, Niamh Ring
Microsoft Is Said to Evaluate Possible Bid for Salesforce.com
2015-05-05 18:57:03.372 GMT
By Alex Sherman, Dina Bass and Matthew Campbell
(Bloomberg) -- Microsoft Corp. is evaluating a bid for
Salesforce.com Inc., after the cloud software provider was
approached by another would-be buyer, people with knowledge of
the matter said.
Salesforce, which has a market value of $47 billion, is
working with two investment banks to determine a response to
approaches, two of the people said. The San Francisco-based
company’s options could include rebuffing any buyer, or working
out a sale, people with knowledge of the matter told Bloomberg
last week.
Microsoft isn’t in talks with Salesforce, and no deal is
imminent, the people said. Still, Redmond, Washington-based
Microsoft has long expected it might compete for Salesforce if
it was for sale, one of the people said. Another company was in
talks with Salesforce as recently as April, spurring Microsoft’s
actions, two people said.
For any buyer, Salesforce offers a leading position in
customer relationship management, or CRM, software, as well as
cloud computing -- the delivery of business software and
services via the Internet.
Microsoft and Salesforce reached an agreement last year to
make the companies’ software work better together. Microsoft,
which sells its own customer-management software, lags behind
Salesforce. Last week Microsoft set a goal of reaching a $20
billion revenue run rate for its commercial cloud business by
the fiscal year ending June 30, 2018.
Tony Imperati, a spokesman for Microsoft, and Chi Hea Cho,
a spokeswoman for Salesforce, declined to comment.
Oracle Corp. Chief Executive Officer Safra Catz said last
week an acquisition of Salesforce would create disruption in the
software market. She declined to comment on whether Oracle was
interested in buying Salesforce.
Salesforce was involved in strategic-alliance discussions
with SAP SE last year, people with knowledge of the matter said
last week. SAP said it’s not considering a bid for Salesforce.
For Related News and Information:
SAP, Oracle Lead Contenders in Would-Be Salesforce Pursuit
Salesforce Seen as Attractive, If Pricey, Target for Cloud Push
Top Deal Stories:DTOP<GO>
--With assistance from Beth Jinks and Jack Clark in San
Francisco.
To contact the reporters on this story:
Alex Sherman in New York at +1-212-617-8278 or
asherman6@bloomberg.net;
Dina Bass in Seattle at +1-206-262-4143 or
dbass2@bloomberg.net;
Matthew Campbell in London at +44-20-3525-8684 or
mcampbell39@bloomberg.net
To contact the editors responsible for this story:
Mohammed Hadi at +1-212-617-2914 or
mhadi1@bloomberg.net;
Jillian Ward at +1-415-617-7261 or
jward56@bloomberg.net
Elizabeth Wollman
2015-05-05 18:57:03.372 GMT
By Alex Sherman, Dina Bass and Matthew Campbell
(Bloomberg) -- Microsoft Corp. is evaluating a bid for
Salesforce.com Inc., after the cloud software provider was
approached by another would-be buyer, people with knowledge of
the matter said.
Salesforce, which has a market value of $47 billion, is
working with two investment banks to determine a response to
approaches, two of the people said. The San Francisco-based
company’s options could include rebuffing any buyer, or working
out a sale, people with knowledge of the matter told Bloomberg
last week.
Microsoft isn’t in talks with Salesforce, and no deal is
imminent, the people said. Still, Redmond, Washington-based
Microsoft has long expected it might compete for Salesforce if
it was for sale, one of the people said. Another company was in
talks with Salesforce as recently as April, spurring Microsoft’s
actions, two people said.
For any buyer, Salesforce offers a leading position in
customer relationship management, or CRM, software, as well as
cloud computing -- the delivery of business software and
services via the Internet.
Microsoft and Salesforce reached an agreement last year to
make the companies’ software work better together. Microsoft,
which sells its own customer-management software, lags behind
Salesforce. Last week Microsoft set a goal of reaching a $20
billion revenue run rate for its commercial cloud business by
the fiscal year ending June 30, 2018.
Tony Imperati, a spokesman for Microsoft, and Chi Hea Cho,
a spokeswoman for Salesforce, declined to comment.
Oracle Corp. Chief Executive Officer Safra Catz said last
week an acquisition of Salesforce would create disruption in the
software market. She declined to comment on whether Oracle was
interested in buying Salesforce.
Salesforce was involved in strategic-alliance discussions
with SAP SE last year, people with knowledge of the matter said
last week. SAP said it’s not considering a bid for Salesforce.
For Related News and Information:
SAP, Oracle Lead Contenders in Would-Be Salesforce Pursuit
Salesforce Seen as Attractive, If Pricey, Target for Cloud Push
Top Deal Stories:DTOP<GO>
--With assistance from Beth Jinks and Jack Clark in San
Francisco.
To contact the reporters on this story:
Alex Sherman in New York at +1-212-617-8278 or
asherman6@bloomberg.net;
Dina Bass in Seattle at +1-206-262-4143 or
dbass2@bloomberg.net;
Matthew Campbell in London at +44-20-3525-8684 or
mcampbell39@bloomberg.net
To contact the editors responsible for this story:
Mohammed Hadi at +1-212-617-2914 or
mhadi1@bloomberg.net;
Jillian Ward at +1-415-617-7261 or
jward56@bloomberg.net
Elizabeth Wollman
Paper Companies’ Bid to Reduce Tax Bills Curtailed in IRS Rule
2015-05-05 15:19:08.701 GMT
By Richard Rubin
(Bloomberg) -- Packaging companies including International
Paper Co. and Rock-Tenn Co. won’t be able to separate their
containerboard operations into tax-advantaged vehicles, under
rules proposed Tuesday by the IRS.
The rules include a narrow definition of the timber-related
activities that can be housed inside a master limited
partnership, which doesn’t pay corporate-level taxes in the U.S.
That language limits paper companies’ ability to mimic the tax
structure used by oil pipelines.
Under the new IRS rule, processing of timber includes
making sawdust, untreated lumber and woodchips. The tax break is
unavailable once chemicals or foreign substances are added and
it’s turned into paper, pulp and plywood.
“This is something that no one really expected,” said
Robert Willens, a tax consultant in New York. “This is the
biggest surprise by far, the narrow definition of processing and
the fact that it certainly by any reading of this it certainly
eliminates the possibility of putting containerboard activities
into an MLP.”
Shares of Rock-Tenn declined as much as 3.37 percent before
reaching $61.63 at 11:04 a.m., down 2.94 percent. Shares of
International Paper declined as much as 4.71 percent, before
reaching $51.55 at 11:05 a.m., down 4.08 percent.
“The proposed regulations are largely consistent with the
rulings the IRS has issued in the past, with some exceptions,”
the IRS said in a statement. “Where the new guidance interprets
the law more narrowly than in the past, Treasury and IRS believe
the regulations more accurately reflect congressional intent.”
Last month, Mark Sutton, the CEO of International Paper,
said the company was analyzing the potential move to an MLP
structure and waiting for the IRS rules.
For Related News and Information:
Top Stories:TOP<GO>
News about the IRS: NI IRS <GO>
U.S. Federal Budget: BUDG <GO>
Tax News: NI TAX <GO>
To contact the reporter on this story:
Richard Rubin in Washington at +1-202-654-7307 or
rrubin12@bloomberg.net
To contact the editors responsible for this story:
Jodi Schneider at +1-202-654-7362 or
jschneider50@bloomberg.net
Laurie Asseo
2015-05-05 15:19:08.701 GMT
By Richard Rubin
(Bloomberg) -- Packaging companies including International
Paper Co. and Rock-Tenn Co. won’t be able to separate their
containerboard operations into tax-advantaged vehicles, under
rules proposed Tuesday by the IRS.
The rules include a narrow definition of the timber-related
activities that can be housed inside a master limited
partnership, which doesn’t pay corporate-level taxes in the U.S.
That language limits paper companies’ ability to mimic the tax
structure used by oil pipelines.
Under the new IRS rule, processing of timber includes
making sawdust, untreated lumber and woodchips. The tax break is
unavailable once chemicals or foreign substances are added and
it’s turned into paper, pulp and plywood.
“This is something that no one really expected,” said
Robert Willens, a tax consultant in New York. “This is the
biggest surprise by far, the narrow definition of processing and
the fact that it certainly by any reading of this it certainly
eliminates the possibility of putting containerboard activities
into an MLP.”
Shares of Rock-Tenn declined as much as 3.37 percent before
reaching $61.63 at 11:04 a.m., down 2.94 percent. Shares of
International Paper declined as much as 4.71 percent, before
reaching $51.55 at 11:05 a.m., down 4.08 percent.
“The proposed regulations are largely consistent with the
rulings the IRS has issued in the past, with some exceptions,”
the IRS said in a statement. “Where the new guidance interprets
the law more narrowly than in the past, Treasury and IRS believe
the regulations more accurately reflect congressional intent.”
Last month, Mark Sutton, the CEO of International Paper,
said the company was analyzing the potential move to an MLP
structure and waiting for the IRS rules.
For Related News and Information:
Top Stories:TOP<GO>
News about the IRS: NI IRS <GO>
U.S. Federal Budget: BUDG <GO>
Tax News: NI TAX <GO>
To contact the reporter on this story:
Richard Rubin in Washington at +1-202-654-7307 or
rrubin12@bloomberg.net
To contact the editors responsible for this story:
Jodi Schneider at +1-202-654-7362 or
jschneider50@bloomberg.net
Laurie Asseo
TWTR Hearing activist investor chatter- Speculation circulating that Icahn could get involved and try to push a merger with Google