(BN) *DELPHI TO BUY HELLERMANNTYTON FOR £1.07B

BN 07/30 06:13 *DELPHI TRANSACTION RECOMMENDED BY BOARD OF HELLERMANNTYTON
BN 07/30 06:13 *DELPHI TO BUY HELLERMANNTYTON FOR 480P IN CASH/SHR
BN 07/30 06:12 *DELPHI SELLS RECEPTION SYSTEMS BUSINESS
BN 07/30 06:12 *DELPHI TO BUY HELLERMANNTYTON FOR £1.07B
Delphi Positions for Strong Growth with Acquisitions and Investments; Expands Capabilities
2015-07-30 06:00:00.174 GMT

Delphi Positions for Strong Growth with Acquisitions and Investments;
Expands Capabilities

* Delphi to acquire HellermannTyton for £1.07 billion, expanding its
Electrical/Electronic Architecture global business
* Acquisition of software company, Ottomatika, and strategic investment in
3D LiDAR company, Quanergy, boost leading active safety and automated
driving capabilities
* Investment in software company Tula Inc. expands Powertrain offerings
* Company divests reception systems business

Business Wire

GILLINGHAM, England -- July 30, 2015

Strengthening its capabilities and portfolio offerings in key industry growth
areas, Delphi Automotive PLC (NYSE: DLPH) has executed a series of
acquisitions, investments and a divestiture.

HellermannTyton: Delphi has reached agreement on a recommended offer to
acquire HellermannTyton Group PLC (LSE: HTY), a leading global manufacturer of
high-performance and innovative cable management solutions, for 480 pence in
cash per share, which translates to approximately £1.07 billion of market
capitalization and implies an enterprise value of $1.85 billion at today’s
exchange rate.

The transaction has been recommended by the board of HellermannTyton and is
expected to close late in the fourth quarter of 2015, subject to regulatory
consents and approvals and approval by HellermannTyton’s shareholders. Upon
completion, HellermannTyton will become part of Delphi’s Electrical/Electronic
Architecture segment.

The acquisition expands Delphi’s product portfolio within the connected
vehicle solutions market and will help capitalize on the connected car
megatrend. It also further strengthens Delphi’s leading position in the
electrical architecture market, while providing a platform to grow in
HellermannTyton’s adjacent industrial end markets, including aerospace,
defense, alternative energy and mass transit.

“With consumers now demanding more connectivity in their vehicles, electrical
architecture is the enabler to that added vehicle content,” said Kevin Clark,
Delphi president and chief executive officer. “HellermannTyton positions
Delphi to provide customers with an even broader portfolio of highly
engineered and customized connection systems and cable management solutions.
By leveraging the combined capabilities of both companies, we will be able to
capitalize on additional growth opportunities and create significant value for
our customers and shareholders.”

Strategic and Financial Benefits

* Extends Delphi’s leadership in electrical architecture components.
HellermannTyton has a leading market position in providing cable
management solutions in the vehicle and has an extensive range of products
that are mission-critical in nature and are highly engineered to customer
specification.
* Strong growth fundamentals and EBITDA margins. HellermannTyton has a
well-established track-record of growing 3-5 percentage points faster than
its end markets and has realized top-line constant currency CAGR of
approximately 10 percent per year since 2010, while maintaining EBITDA
margins of approximately 20 percent.
* Transaction is accretive to Delphi’s EPS. Delphi expects the transaction
to be 15 cents accretive to earnings per share starting in 2016.
* Significant operating and revenue synergies. The acquisition will also be
immediately accretive to growth and margins based on significant operating
synergies from sourcing and supply chain initiatives. Delphi has a strong
track record of successfully integrating businesses like HellermannTyton
and believes it will be able to achieve synergies of approximately $50
million per year by the end of 2018 through sourcing savings, supply chain
savings and leveraging the combined product portfolio.
* Allows Delphi to capitalize on attractive industrial end markets. The
acquisition of HellermannTyton will enhance Delphi’s already strong
relationships with key global automakers and will provide access to
HellermannTyton’s non-automotive end markets.

Ottomatika and Quanergy: To enhance its leading active safety and automated
driving capabilities, Delphi has acquired software company, Ottomatika, and
has made a strategic investment in 3D LiDAR sensing leader, Quanergy. These
strategic moves strengthen Delphi’s advanced driver assistance system (ADAS)
applications and could help speed the adoption of automated vehicles. The
ability to detect objects and execute digital mapping, surface modelling and
distant imaging is enabled by the use of Light Detection and Ranging (LiDAR)
scanners.

By combining Ottomatika’s automated driving software with Delphi’s active
safety systems, the two companies have developed a technology platform for
automated driving that enables a vehicle to make human-like decisions.

Quanergy and Delphi will collaborate to bring a range of low-cost,
high-performance solid state LiDAR products to the automotive market to
provide a complete vehicle perception solution for Level 3 and 4 automation
applications. The prospect of a lower-cost ADAS solution could bring
widespread adoption of the life-saving active safety technology.

Tula Technology: Delphi also made a minority investment in Tula Technology,
which develops software that provides cost-efficient, fuel economy gains in
cylinder deactivation technology. Delphi and Tula’s engine control system
software can increase fuel efficiency and cut emissions without sacrificing
drivability or performance. The combined solution will allow the engine’s
cylinders to fire or skip (deactivate) on a continuously variable basis, which
ultimately increases fuel efficiency by up to 15 percent in a cost-efficient
manner.

“These companies bring unique and strategic capabilities in software and
sensing technology, strengthening our portfolio in active safety and fuel
economy, two critical long-term growth areas for the automotive market,” said
Jeff Owens, Delphi chief technology officer. “We have had strong working
relationships with these companies and believe the synergies are excellent. We
continue to explore additional acquisition and investment opportunities that
will enhance our growth in our core safe, green and connected areas of focus.”

Reception Systems: Additionally, Delphi has entered into a definitive
agreement to sell its reception systems business, which consists of automotive
antennas and in-vehicle TV tuners, to Northeast Industries Group Corp., a
leading Chinese automotive supplier. Delphi expects to complete the sale in
the third quarter of 2015, subject to regulatory approval.

Conference Call and Webcast

Delphi will host a conference call to discuss financial results and these
transactions today at 8:30 a.m. (ET). A link to the live webcast of the call
and presentation materials will be available on the Delphi Investor Relations
website at http://investor.Delphi.com/. To participate by telephone, please
dial 888.486.0553 (U.S.) or 1.706.634.4982 (international) 15 minutes prior to
the start time of the call and ask to be connected to the Delphi Automotive
conference call. The conference ID number is 75261541.

About Delphi

Delphi Automotive PLC (NYSE: DLPH) is a leading global technology company for
automotive and commercial vehicle markets delivering solutions that help make
vehicles safe, green and connected. Headquartered in Gillingham, U.K., Delphi
operates technical centers, manufacturing sites and customer support services
in 33 countries. Visit www.delphi.com.

Forward Looking Statement

This press release contains forward-looking statements within the meaning of
the Securities Act of 1933 and of the Securities Exchange Act of 1934. These
forward-looking statements reflect, when made, Delphi's current views with
respect to current events and certain investments and acquisitions by Delphi.
All statements that address our expectations surrounding consummation of such
transactions and their impact on Delphi, as well as future operating,
financial or business performance or our strategies or expectations are
forward-looking statements. Such forward-looking statements are subject to
many risks, uncertainties and factors relating to Delphi's operations and
business environment as well as market conditions, which may cause Delphi’s
actual results to be materially different from any future results, express or
implied, by such forward-looking statements. In some cases, you can identify
these statements by forward-looking words such as “may,” “might,” “will,”
“should,” “expects,” “plans,” “intends,” “anticipates,” “believes,”
“estimates,” “predicts,” “projects,” “explore,” “potential,” “outlook” or
“continue,” and other comparable terminology. Factors that could cause actual
results to differ materially from these forward-looking statements include,
but are not limited to, the following: our ability to consummate pending
acquisitions and our ability to integrate and realize the benefits of pending
and recent acquisitions; global economic conditions, including conditions
affecting the credit market; the cyclical nature of automotive sales and
production; the potential disruptions in the supply of and changes in the
competitive environment for raw material integral to our products; our ability
to maintain contracts that are critical to our operations; our ability to
attract, motivate and/or retain key executives; our ability to avoid or
continue to operate during a strike, or partial work stoppage or slow down by
any of our unionized employees or those of our principal customers, and our
ability to attract and retain customers. Additional factors are discussed
under the captions “Risk Factors” and “Management’s Discussion and Analysis of
Financial Condition and Results of Operations” in our filings with the
Securities and Exchange Commission, including those set forth in our Annual
Report on Form 10-K for the fiscal year ended December 31, 2014. New risks and
uncertainties arise from time to time, and it is impossible for Delphi to
predict these events or how they may affect Delphi. Delphi disclaims any
intention or obligation to update or revise any forward-looking statements,
whether as a result of new information, future events and/or otherwise, except
as may be required by law.

View source version on businesswire.com:
http://www.businesswire.com/news/home/20150729006890/en/

Contact:

Delphi Automotive PLC
Investor Contact:
Jessica Holscott
248.813.2312
Jessica.Holscott@delphi.com
Media Contact:
Claudia Tapia
248.813.1507
Claudia.Tapia@delphi.com

-0- Jul/30/2015 06:00 GMT

>>> What to look at today - 30th of July 2015

Dow+0.69% S&P+0.73% Nasdaq+0.44% Russell+0.41%
US Market closed higher for 2nd day in a row. S&P Closed above its 50d & 100d MA. Equity indices began the day with slight gains after China's Shanghai Composite spiked 3.4% overnight, which improved risk tolerance among global investors. The Dow and S&P 500 rallied throughout the session while the Nasdaq hovered near its opening levels into the afternoon before setting new highs ahead of the close. energy sector (+1.3%) settled ahead of industrials thanks to an intraday rally in crude oil that sent the energy component higher by 1.7% to $48.77/bbl. Volume were ahead of average @ 850mil shares. US After Hours LPSN +21.5%, WSTL +15.8%, VRTX +2.3%, QRVO -15.5%, WFM -11.2%, FB -3.3% following earnings/guidance...Asian indices are mixed as traders digest the implications of marginal changes in the latest FOMC statement. While the Fed clearly upgraded its view of US employment, inflation outlook remains subdued and thus the baseline scenario is for rate liftoff to be beyond the next September meeting. US stocks were higher into the close, but the bond market is in retreat with the 10-year note yield back above 2.3% for the first time in a week. Two more jobs reports and GDP data (first estimate is on Thursday) should continue to solidify market bias for the Fed timing. Shanghai Composite trading was significantly less volatile as traders also await the official PMI figures due Friday evening. PBoC did inject another CNY40B of liquidity through 7-day repos, but the offering yield remained unchanged at 2.5%. Samsung Electronics fell over 3% after final Q2 results. Panasonic 6752.JP -5.0% (Q1 result), LG El. 066570.KR -5.7%, NHN 035420.KR -12.8% (Q2 result, Tokyo Electric Power Co 9501.JP +5.9% (Q1 result)

Nikkei +0.93% Hang Seng +0.25% Shanghai +1.18%

Eur$ 1.0962 JPY 124.12 GBP 1.5594 EURCHF 1.0623 RUB $58.77 WTI $48.75 (-0.12%)

S&P -0.05% EuroStoxx +0.76% Dax +0.7% SMI +0.32%


Macro :
- Greek Govt Discussed Bank Recapitalization Today: Official
- MSCI Won’t Change Greece Indexes as Part of Aug. Qtrly Review

Keep an eye on :
- ABI BB : AB InBev 2Q Normalized Ebitda, Organic Rev. Growth Miss Ests., 2Q Organic Vols. Fell in North America, Europe
- AC FP : Accor 1H Ebit Beats Ests., 2015 Ebit Forecast Below Ests.
- AI FP : Air Liquide 1H Earnings Beat Estimates; 2015 Forecast Confirmed
- ALU FP : Alcatel-Lucent 2Q Sales Match Ests.; CEO to Depart Sept. 1
- ALU FP : Alcatel-Lucent CFO Says Nokia Deal Could Close Early Next Year
- ANA FP : Acciona 1H Net Rises 50% From Year Earlier to EU103 Million
- ADP FP ; Alexander Wang Said to Be Ready to Leave Balenciaga: Reuters
- APAM FP : Aperam 2Q Ebitda Tops Est., 3Q Ebitda to be Lower Q/q
- AREVA FP : Areva Says It Needs About EU7b in Financing for 2015-17
- ASMI NA: ASM International 2Q Rev. Beats Ests.; Net Misses
- SAN SM : Banco Santander 2Q Net EU2.54B; Est. EU2.6B
- BRISA PL : Brisa Concessao Raises Forecast for 2015 Toll Revenue Growth
- CAP FP : Cap Gemini 1H Sales Beats; Raises 2015 Outlook
- CO FP : Casino 1H Trading Profit Falls, Hurt by France Price Cuts
- CDI FP : Christian Dior FY Rev. EU35.1b vs Est. EU34.2b
- CLN VX : Clariant 2Q Ebitda Ex-Items In Line; Confirms 2015, M/T Outlook, to Set Up Separate Unit for Plastics and Coatings
- DELB BB : Delhaize Group 2Q Adj. Ebit EU223m; Est. EU197.8m; Keeps Outlook
- DUFN SW : Dufry 1H Rev. Up 31%, Ebitda Up 7%
- EI FP : Essilor Confirms Full-Year Targets; Demand Strong in US, Europe
- EUCAR FP : Europcar Groupe 1H Adjusted Corporate Ebitda EU60.2M, Up 39%
- ETL FP : Eutelsat FY Rev., Ebitda Meet Ests.; Sees Rev. Growth Improving
- ENEL IM : Enel 1H Adj. Net, Ebitda Beat; Net Debt Up 6.6% From Year-End
- ENI IM : Eni 2Q Adj. Net EU448m vs Est. EU469m; Div. EU0.40/Share
- ENX FP : Euronext 2Q Ebitda, Rev. Advance; Year End Targets on Track
- FRE GY : Fresenius 2Q Rev. EU6.9b vs Est. EU6.8b, Fresenius Raises 2015 Earnings Guidance
- GAM FP : Gamesa 1H Net Pre-Adwen EU86M Vs EU42M a Yr Earlier
- GSZ FP : Engie 1H Ebitda, Net Beat Estimates; Confirms 2015 Targets
- GSZ FP : Engie’s Kocher Says French CSPE on Gas Would Be ‘Bad News’
- G IM : Generali 2Q Net Profit Rises to EU626m; Analyst Est. EU581m
- NK FP : Imerys 1H Net EU145.2m vs EU131.5m Y/y
- IFX GY : Infineon 3Q Sales, Segment Result Match Ests.; Specifies Outlook
- ING FP : Ingenico 1H Net Beats Ests.; Raises 2015 Rev., Ebitda Outlook
- IT IM : Italcementi 2Q Ebitda, Rev Beats, to Review HeidelbergCement Bid
- DEC FP : JCDecaux 1H Adj. Rev. Matches Est.; Sees 3Q In Line With 1H
- DLG GY : Dialog Semi 2Q Sales Beats; 3Q Sales View Misses; CFO to Leave
- JMT PT : Jeronimo Martins 1H Polish Sales Rise 11.7% to EU4.5b Y/y
- KER FP : Alexander Wang Said to Be Ready to Leave Balenciaga: Reuters
- LR FP : Legrand 1H Organic Sales Little Changed, Confirms FY Targets
- LI FP : Klepierre Raises Full-Yr Guidance for Net Current Cash Flow
- LHA GY : Lufthansa 1H Adj. Ebit EU468m; Confirms FY Forecast
- TL5 SM ; Mediaset Espana 1h Ebitda EU119.5m; Est. EU118.75m
- MONC IM : Moncler 1H Sales, Adj. Ebitda Beat Ests.
- NOK1V FH : Nokia 2Q Sales Miss, Adj. EPS Beats Ests., Nokia Networks 2Q Margin Improves; Net Beats, Sales Miss
- ORA FP :  Bpifrance Selling 2% Orange Stake in Accelerated Placement, Sells Orange Shrs at EU15.12, Raises About EU800m
- UG FP : Fabius Says Renault Has Chance in Iran; Harder for Peugeot
- PSM GY : ProSieben 2Q Rev., Ebitda Beat; Sees Sales at Upper End of Range
- QIA GY : Qiagen Reaffirms Adj. EPS, Sales Beat Estimates
- RNO FP : Renault 1H Profit EU1.07b, Est. EU1.08b; Forecast Reiterated
- SAF FP : Safran Could Envison LEAP Production Increase ‘Later,’ CEO Says, Safran Raises Outlook on ‘Strong’ Civil Aftermarket Activity
- SGO FP ; Saint-Gobain 1H Op. Income EU1.275b; Beats Estimates
- SIE GY : Siemens 3Q Industrial Profit Beats Estimates, Confirms Outlook
- SAN FP : Sanofi 2Q Net Sales, Business EPS Beat Ests.; Keeps FY Forecast
- SREN VX : Swiss Re 2Q Net Income $820m, Est. $834m
- TEC FP : Technip 2Q Adj. Ebitda EU353m vs Est. EU335m; Backlog at EU18.8b, CFO Says Oil Projects in North Sea Are Slowing Down
- TEF SM : Telefonica 2Q Oibda EU3.7b; Est. EU3.69b
- TNET BB : Telenet Raises Sales, FCF Forecasts as 2Q Rev. Beats Ests.
- VK FP : Vallourec, Hyundai Mipo May be Cut From MSCI Indexes: SocGen
- RIN FP : Vilmorin FY Rev. EU1.27b, Matches Est.; Net Income Seen Lower
- VOS GY : Vossloh 2Q Net Income EU4.2m vs Loss EU155.4m; Sticks to Outlook

>>> Europe : Brokers Upgrades & Downgrades - 30th of July 2015

>>> Up
*HEIDELBERGCEMENT RAISED TO HOLD VS REDUCE AT KEPLER CHEUVREUX
*HIKMA RAISED TO NEUTRAL VS UNDERPERFORM AT BOFA
*PRELIOS RAISED TO NEUTRAL VS UNDERPERFORM AT MEDIOBANCA
*KPN RAISED TO OUTPERFORM AT RBC CAPITAL
*X5 RETAIL RAISED TO BUY VS HOLD AT HSBC

>>> Down
*COFACE CUT TO NEUTRAL VS OVERWEIGHT AT JPMORGAN
*COFACE CUT TO REDUCE VS HOLD AT KEPLER CHEUVREUX
*COMPUGROUP MEDICAL CUT TO HOLD VS BUY AT BERENBERG
*DIA CUT TO UNDERWEIGHT VS EQUALWEIGHT AT MORGAN STANLEY
*DIXY GROUP CUT TO HOLD VS BUY AT HSBC
*EFG INTERNATIONAL CUT TO HOLD VS BUY AT JEFFERIES
*INDIVIOR CUT TO NEUTRAL VS BUY AT CITI
*MAGNIT CUT TO HOLD VS BUY AT HSBC
*MEDIASET ESPANA CUT TO EQUALWEIGHT VS OVERWEIGHT AT BARCLAYS
*ST JAMES’S PLACE CUT TO HOLD VS BUY AT BERENBERG
*TELECOM ITALIA CUT TO HOLD VS BUY AT BERENBERG
*THALES CUT TO NEUTRAL VS BUY AT CITI
*VEDANTA CUT TO NEUTRAL VS BUY AT BOFA
*VERBUND CUT TO HOLD VS BUY AT SOCGEN
*VOESTALPINE CUT TO HOLD VS BUY AT SOCIETE GENERALE

>>> PT Change


>>> Initiation
*PURETECH HEALTH PLC RATED NEW BUY AT JEFFERIES

>>> Call

>>> US After Hours Summary: LPSN +21.5%, WSTL +15.8%, VRTX +2.3%

After Hours Summary: LPSN +21.5%, WSTL +15.8%, VRTX +2.3%, QRVO -15.5%, WFM -11.2%, FB -3.3% following earnings/guidance

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings: LPSN +21.5%, WSTL +15.8%, OTEX +11.9%, SKX +11.3%, FORM +10.9%, EHTH +9.5%, HOLX +9.4%, VNDA +8.7%, PEGA +7.3%, NTRI +7.2%, ANIK +6.7%, TER +6.7%, RKUS +6.6%, WDC +5.6%, EPE +5.6%, HDSN +5.5%, CWST +4.9%, NE +4.7%, PPC +4.4%, EROC +3.9%, SSNC +3.8%, DEPO +3.2%, ATNI +3.1%, VRTX +2.3%, ESV +2.2%, ARR +2.2%, PODD +1.9%, ORLY +1.4%, INUV +1.3%, WYNN +1.1%

Companies trading higher in after hours in reaction to news: UNIS +45.5% (announced the introduction of the Imperium platform of instant patch pumps for insulin; announced $45 mln equity purchase agreement with Lincoln Park Capital and $25 mln at-the-market facility with Cantor Fitzgerald), IMNP +5.5% (announced securing of up to $21.5 million through two financing agreements), PPC +4.4% (announced Board approval for a new $150 million share repurchase program; co also reported earnings), BDBD +4.2% (Engaged Capital disclosed 9.6% active stake in 13D filing; Engaged has had discussions with management), DEPO +3.2% (announced Board rejection of the revised, unsolicited and non-binding proposal from Horizon Pharma; co also reported earnings), EXPR +2.9% (to replace Associated Estates Realty (AEC) in the S&P SmallCap 600), LDOS +2.5% (awarded an ~$4.34 bln Navy contract), JBL +1.8% (announced Board authorization for up to $100 million in share repurchases during the period from today through August 31, 2016), GLPG +1.4% (co's selective JAK1 inhibitor filgotinib meets key efficacy endpoints, shows ACR70 responses up to 39%, and maintains safety profile after 24 weeks of treatment in DARWIN 1 Phase 2B study)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings: QRVO -15.5%, FMI -13%, FOE -12.1%, WFM -11.2%, CAVM -7.9%, LOCK -7.2%, THRM -6.8%, PVA -5.4%, VAR -5.4%, WLL -5.1%, PEIX -4.8%, ORC -4.1%, IXYS -4%, SPRT -3.7%, FB -3.3%, LQ -2.9%, FISV -2.2%, WPRT -2.1%, ARII -2%, CMPR -1.9%, HLS -1.9%, TTEK -1.9%, SCTY -1.7%, AAC -1.7%, NOW -1.3%, AMC -1.2%, MTGE -1.1%, CMO -1%, CLD -0.9%, MAR -0.8%

Companies trading lower in after hours in reaction to news: GNCA -8.2% (announced a public offering of common stock; size and terms not disclosed), NVIV -3.7% (disclosed entry into a Sales Agreement with Cowen to sell up to $50 mln shares of its common stock), AAC -1.7% (issued a response to a grand jury indictment, related to its investigation by the California Department of Justice; co also reported earnings), CP -1.3$ (announced $800 mln debt offering), AMAG -0.7% (announced a public offering of $200 mln of common stock)

>>> US Close Dow+0.69% S&P+0.73% Nasdaq+0.44% Russell+0.41%

Closing Market Summary: Cyclical Sectors Lead Stocks Higher

The stock market registered its second consecutive advance on Wednesday with the S&P 500 climbing 0.7% to extend its weekly gain to 1.4%. The benchmark index overtook its 100- (2,095) and 50-day moving averages (2,100) during morning action while the tech-heavy Nasdaq (+0.4%) struggled to keep pace with the broader market.

Equity indices began the day with slight gains after China's Shanghai Composite spiked 3.4% overnight, which improved risk tolerance among global investors. The Dow and S&P 500 rallied throughout the session while the Nasdaq hovered near its opening levels into the afternoon before setting new highs ahead of the close.

The tech-heavy index was pressured by biotechnology as iShares Nasdaq Biotechnology ETF (IBB 377.43, -5.41) lost 1.4% despite better than expected earnings from Gilead Sciences (GILD 115.71, +2.64). Shares of GILD spiked 2.3% while the broader health care sector (+0.2%) settled among the laggards. Similar to biotechnology, high-beta chipmakers lagged, but the PHLX Semiconductor Index was able to end the day higher by 0.1%. On the earnings front, Twitter (TWTR 31.24, -5.30) sank 14.5% after the company's bottom-line beat was overshadowed by cautious commentary regarding user growth outlook.

Although the technology sector (+0.7%) struggled in the early going, the top-weighted sector closed the gap during afternoon action, ending in-line with the broader market. Similarly, the materials sector (+0.7%) settled near the S&P 500 while the other four cyclical sectors displayed relative strength.

Most notably, the industrial sector spiked 1.2% with transport stocks fueling the move after C.H. Robinson (CHRW 69.85, +3.12) beat bottom-line estimates on light revenue. The stock surged 4.7% while the broader Dow Jones Transportation Average jumped 1.7% to extend this week's gain to 4.3%.

Elsewhere, the energy sector (+1.3%) settled ahead of industrials thanks to an intraday rally in crude oil that sent the energy component higher by 1.7% to $48.77/bbl. Also of note, Anadarko Petroleum (APC 76.28, +3.43) soared 4.7% after beating earnings expectations.

Today's advance in equities was accompanied by selling in the Treasury market that sent the 10-yr yield higher by three basis points to 2.28%. Treasuries spiked off their intraday lows after the latest policy statement from the FOMC called for more improvement in the labor market before raising rates. On a related note, the Dollar Index (97.16, +0.40) dipped immediately after the minutes crossed the wires, but rallied during the late afternoon at the expense of the euro (-0.8%), which slipped to 1.0980.

For the second day in a row, participation was ahead of average with more than 850 million shares changing hands at the NYSE floor.

Economic data released this morning was limited to the MBA Mortgage Index and Pending Home Sales:
  • The weekly MBA Mortgage Index rose 0.8% to follow last week's 0.1% uptick 
  • Pending home sales for June fell 1.8% while the consensus expected an increase of 1.0% 
Tomorrow, weekly Initial Claims (consensus 272,000) and the advance reading of Q2 GDP (consensus 2.5%) will be released at 8:30 ET.
  • Nasdaq Composite +7.9% YTD 
  • S&P 500 +2.4% YTD 
  • Russell 2000 +2.0% YTD 
  • Dow Jones Industrial Average -0.4% YTD

>>> Honeywell targeting more M&A after Elster; 'we're going to keep going'

Deal Reporter

Honeywell targeting more M&A after Elster; 'we're going to keep going'
Honeywell (NYSE:HON) will continue to pursue buys after announcing an agreement to acquire the Elster division of Melrose Industries, according to CFO Tom Szlosek.

During the conference call on Tuesday (28 July) held to discuss the deal, Morgan Stanley's Nigel Coe suggested that Honeywell still had ample balance sheet capacity, and asked if the company was done on M&A for this year or could do one or two additional deals.

"I don't think we're done," Szlosek replied. "I don't really think this changes our focus on it, the efforts that we're devoting towards it, our pipeline. We've got a number of attractive things, and we're going to keep going. So we're excited about the environment ... and we're going to keep pushing forward here."

In his opening remarks on the call, Szlosek said the purchase of Elster, which is based mainly in Mainz-Kastel, Germany, would provide runway for future organic growth and additional M&A in the combined business.

The company announced Tuesday it will pay USD 5.1bn for Elster, a provider of thermal gas solutions for commercial, industrial, and residential heating systems and gas, water, and electricity meters, including smart meters and software and data analytics solutions. Elster's consensus sales for 2015 are estimated to be USD 1.8bn. Honeywell expects the deal to close in the first quarter of 2016.

In his overview of the deal on Tuesday's call, CFO Szlosek noted Honeywell's three principal deal hurdle requirements: IRR greater than Honeywell's cost of capital; year five book ROI including amortization of intangibles and other purchase accounting items greater than 10%; and earnings accretion in year two after close.

"This acquisition will meet all three of those requirements, enabled by the expected 8%-plus cost synergies," he said.

Deal process, regulatory outlook

On the call, Barclays analyst Scott Davis if the process had been an auction.

"We termed it a public company process, but the reality is that we worked very closely with Melrose and we actually had private company-type due diligence. We're very comfortable with the access that we had, and it was a fairly lengthy process," Szlosek replied.

Asked later in the session by Bernstein's Steven Winoker why Honeywell did not buy Elster in 2012 when it was available before being acquired by Melrose, Szlosek said Honeywell had "other priorities at the time" though "it certainly was something on our screen."

At the end of the call, asked by Goldman Sachs analyst Joe Ritchie about potential antitrust hurdles and if any portfolio overlap could create uncertainty in the approval process, the CFO said Honeywell said done a careful screen in this regard.

"We don't think there are any material antitrust issues on our screen, but obviously it's a process we don't control," Szlosek said. "And you've got the big three regulators that we need to deal with, the U.S., Europe and in China. We're going to pull out all the stops to get this done as fast as we can. We've got Melrose's commitment on that as well. And we, knock on wood, hope that will not be a major factor in this."

Honeywell's financial advisors during the past half-decade have included Deutsche Bank and Rothschild. For legal, Bingham McCutchen, O’Melveny & Myers and Jenner & Block have been used on multiple acquisitions in recent years, according to the Mergermarket M&A database.

Morris Township, New Jersey-based Honeywell has a market capitalization of USD 82bn.

Telegraph : Iran Minister Says Nuclear Deal Will Create 'Opportunities' to Work

Iran and America will have “opportunities” for greater cooperation in tackling terrorism if the nuclear agreement is implemented successfully, according to the Islamic Republic's deputy foreign minister.
In an interview with The Telegraph in Tehran, Majid Takht Ravanchi cautiously laid out a path for how Iran's rapprochement with the United States might go beyond the nuclear deal.
He stressed that it was “premature” to go into detail, but the struggle against terrorism was one possible area for future cooperation.
Mr Ravanchi added that no “serious issues” stood in the way of reopening the British Embassy in Tehran, predicting that normal ties could be restored sooner than UK officials have suggested.
As the minister with special responsibility for Iran's relations with America and Europe, Mr Ravanchi helped to negotiate the nuclear agreement announced in Vienna on July 14. In the aftermath of that accord - which he called a “new baby” - he laid out Iran's view of relations with America.
”For the future, it is premature to see whether there will be possibilities for Iran and the United States to work together on regional issues. First we have to see how this new baby, if I can say, can be brought up,” he said.
“If everything goes well in the implementation of the agreement, I think there will be opportunities. I cannot say now to what extent Iran can cooperate with the West.”
• Iran nuclear deal: new generation dares to dream of brighter future
For now, Mr Ravanchi said the priority was to ensure the nuclear deal was “nurtured, protected, supported”. He added: “Suppose that this matter is being implemented properly and over time the necessary confidence is built, there are opportunities - and first and foremost is over how to deal with this problem of terrorism and extremism.”
Mr Ravanchi added: “This is an issue which is not confined to a specific region, which is not related to only one country. So these are the opportunities that can be discussed, can be elaborated, between Iran and others in the future.”
As for the timing of any future cooperation with America, Mr Ravanchi stressed how the progress of the nuclear agreement, officially known as the Joint Comprehensive Plan of Action (JCPOA), would be the decisive factor.
”It seems to us that we need four to five months before this JCPOA begins to be implemented. So we are talking about somewhere around six months to one year - and I think it is not really wise to talk about it now,” he said.
Iran has joined the struggle against the Islamic State of Iraq and the Levant (Isil), carrying out air strikes and deploying military commanders in Iraq.
Mr Ravanchi stressed how the Isil “menace” transcended national boundaries. “This is an international threat and this needs an international response. We believe that all members of the international community should come together and try to address this problem.”
President Barack Obama is trying to persuade Congress to endorse the nuclear deal. In order to reassure Republican critics, he has declared that America retains the option of using force against Iran or re-imposing sanctions.
These comments have stirred unease in Tehran, but Mr Ravanchi said Iranians understood that Mr Obama's remarks were “for domestic consumption”.
He added: “Talking about the use of force is an empty threat and does not solve any problem. But we know they have difficulties back home, they have to address the concerns being raised in the Congress. As far as reaction to those comments in Iran is concerned, I think the Iranian people know these are not something they should really worry about.”
Mr Ravanchi said: “There is a bitter history between Iran and the United States. As I said, this nuclear deal can be the foundation for possible future interaction.”
Britain closed its embassy in Tehran in 2011 after the mission was stormed and looted. The Foreign Office retaliated by expelling Iran's diplomats from London.
Mr Ravanchi made clear that both embassies would soon reopen. “There are a number of issues which need to be resolved, but I think these are not difficult issues,” he said. “We have not discussed officially when that specific date should be, but I don't think this is going to be a major problem.”
Philip Hammond, the Foreign Secretary, suggested last week that Britain's embassy in Tehran could reopen by December. For his part, Mr Ravanchi said: “I think we can do it even earlier, because these issues are not really serious issues.”