>>> Pininfarina talks with Mahindra & Mahindra may be back on agenda – report (t

Pininfarina talks with Mahindra & Mahindra may be back on agenda 

Listed Italian car design company Pininfarina could restart talks over a sale with Mahindra & Mahindra (M&M), Italian language daily Il Messaggero reported. The unsourced report said that the path to reopening negotiations was opened by the loss of a court case by former Pininfarina workers whose production facility was sold to the De Tomaso car group demanding to be re-employed by Pininfarina.

As previously reported, M&M was set to invest up to EUR 80m in taking control of Pininfarina. Some 76% of holding company Pincar is held by Pininfarina's creditor banks, the most exposed of which are Intesa Sanpaolo, Banco Popolare, Unicredit and UBI Banca, as previously reported.

Il Messaggero

>>> OCI Materials preliminary bids due August; Taiyo Nippon Sanso among suitors

Deal Reporter

OCI Materials preliminary bids due August; Taiyo Nippon Sanso among suitors – sources
OCI [KRX: 010060] has dispatched information memorandum for the proposed sale of OCI Materials [KOSDAQ: 036490] to multiple domestic and foreign suitors and is preparing to receive preliminary bids by early August, it is understood. Qualified suitors will move ahead with due diligence during August, it was said.

Japan’s Taiyo Nippon Sanso [TYO: 4091] has been in talks for the potential acquisition of OCI Materials, but has not reached a final decision on whether it will move forward with placing a bid, a company spokesperson confirmed. He was responding to a request for comment from this news service following claims from an industry source that the Japanese firm was interested in bidding for the company.

Taiyo Nippon Sanso currently purchases, bottles, and sells industrial gases, including NF3, SiH4, and WF6 from OCI Materials, according to the Taiyo spokesperson. The potential acquisition could allow Taiyo to secure production facilities to enhance its procurement network. However, the spokesperson acknowledged that the industry was mature and that it was unlikely to grow significantly going forward.

Meanwhile, a Chinese bidder is also in discussions to buy OCI Materials, a source familiar with the situation said.

The Chinese bidders could be the most likely suitors, two bankers following the situation and the source familiar said. Chinese companies are generally keen to expand in the semiconductor and display sector as encouraged by the government, the source familiar said, pointing to state-run Tsinghua Unigroup’s reported USD 23bn bid to acquire US-based chipmaker Micron Technology.

Foreign bidders could be attracted to the target’s large production capacity and existing relationships with two major clients Samsung and LG Electronics, said two bankers following the situation. However, the high valuation and cyclical nature of the business could prove to be hurdles, they noted, adding that there could be a price gap.

Shares of OCI Materials shot up 159% this year, valuing the company at KRW 1.46tn (USD 1.23bn). The current high trading multiple, more than four times book value, and uncertainty over global supply and demand in the next few years could be risk factors, the second banker explained.

OCI said on 10 June that it had hired Credit Suisse to sell a controlling 49.1% stake in OCI Materials to focus on its solar energy business. OCI Materials manufactures industrial gases such as NF3, SiH4, and WF6 for the production of semiconductors, LCD panels, and solar batteries. It is the largest producer of NF3 globally.

Air Products Korea, DaeSung Industrial Gases, and Hyosung are competitors in the field of NF3 in Korea, a third banker said.

Total domestic production of NF3 was 17,000 tons in 2014. Hyosung, which focuses on development of specialty gas/materials, is working to upgrade production of NF3 to 3,500 tons from 2,000 tons, according to a May report from IBK Securities.

Hyosung expects to increase production supply of NF3 from 2Q16, while DaeSung is also looking to increase production from next year, which will result in an increase of 3,000 tons of NF3 in total, an analyst at IBK Securities said.

However, the increase in capacity is unlikely to immediately affect OCI Materials’ profitability as Samsung Electronics expects demand to be resilient for a while, the analyst said. Although OCI Materials has a high operating profit ratio of about 30%, and solid earning prospect for FY15, the company is rather overvalued at this moment, the analyst added.

OCI Materials is estimated to record sales of KRW 319bn and operating profits of KRW 99bn this year, 50% and 280% up YoY, according to a June research report from eBest Investment Securities.

Sale proceeds

OCI said this morning that it sold OCI Resources [NYSE:OCIR] to Park Holding AS, a subsidiary of Ciner Group of Istanbul for USD 465m.

The company plans to use the proceeds of the non-core asset sale to invest in solar power plants, ESS (energy storage system), and its chemical materials business, said an OCI spokesperson. OCI has not finalized details of its investment strategy of the ESS and chemical businesses as yet, he said.

With regards to its solar power plant project, OCI has been working for Alamo project in Texas, US; seven solar power plants that require about KRW 1.3tn of investment in total. The company has completed half of the project, and expects to finish it by the end of next year, the spokesperson said. The asset sale is also expected to help to minimize the company’s mounting liabilities, as reported. OCI had an approximate debt to equity ratio of 120% in 1Q15.

Shares of OCI were up 5.56% at KRW 123,500 on Tuesday afternoon.

>>> Bosch Partners with TomTom on innovative mapping technology for automated dr

Partners with TomTom on innovative mapping technology for automated driving 
- High-precision maps are essential for highly automated driving
- Bosch is using TomTom maps in its automated test vehicles
- Freeways and freeway-like roads in Germany to be digitized for automated driving by the end of 2015
- Maps for highly automated driving have to be accurate to decimeter precision
- Collaboration will result in innovative vehicle positioning concepts

(BN) Oil Guru Who Called 2014 Slump Sees Return to $100 Crude by 2020

Oil Guru Who Called 2014 Slump Sees Return to $100 Crude by 2020
2015-07-21 05:16:33.107 GMT


By Javier Blas and Grant Smith
(Bloomberg) -- The oil guru who predicted last year’s rout
said $100-a-barrel crude is likely to return within five years
as faltering supply fails to meet demand.
Gary Ross, the founder of consultants PIRA Energy Group,
said oil markets aren’t nearly as oversupplied as many believe
and spare capacity is tight since Saudi Arabia is pumping all
the crude it can without new drilling.
“Current prices are unsustainable,” he said Monday in an
interview in London. “It’s hard not to see oil hitting $100 a
barrel at some point in the next five years.”
The forecast from Ross, who last year turned bearish on oil
before prices shrank by half, is at odds with other analysts and
investors bracing for “lower for longer” prices, a term coined
by BP Plc Chief Executive Officer Bob Dudley. Saudi Oil Minister
Ali Al Naimi said in December the world may not see $100 crude
again, while the International Energy Agency has described the
markets as “massively oversupplied.”
Such views fail to take into account the impact of $50 oil
on output outside North America as producers reduce spending,
according to Ross. The likelihood of further disruption to OPEC
supplies and the boost to consumption from cheap fuel also
support prices, he said.
Brent crude, the global benchmark grade, lost 10 cents to
$56.55 a barrel on the London-based ICE Futures Europe exchange
at 1:06 p.m. Singapore time on Tuesday. West Texas Intermediate
oil fell 18 cents to $49.97.

Policy Change

PIRA hosted a seminar in New York in October where Saudi
officials hinted they would change their oil policy. OPEC’s
biggest oil-exporting nation announced weeks later that it would
maintain production to defend market share, sending prices
plunging.
Saudi Arabia has already exhausted its ability to ramp up
“instantaneous” production in the event of an outage, Ross
said. The kingdom, which pumped a record of almost 10.6 million
barrels a day in June, could raise output by 1 million barrels a
day in 90 days with extra drilling, he said. That’s about half
the spare capacity estimated by the Paris-based IEA.
“There’s not spare capacity to speak of instantly
available,” Ross said. There are also growing geopolitical
threats to supply, including from Islamic State, he said.
PIRA forecasts a jump in global oil demand of about 1.7
million barrels a day this year and a similar gain in 2016. That
exceeds the 10-year average increase of about 1 million barrels
a day. It sees strong demand in Europe, the U.S. and Japan.

Tighter Supply

Supplies from most countries outside the Organization of
Petroleum Exporting Countries will contract next year for the
first time since 2008. While output in North America will
increase, production from Australia, the North Sea, Colombia and
Argentina will decline, according to PIRA.
Even higher exports from Iran following the landmark July
14 accord to ease sanctions may do little to check oil’s
advance, Ross said. The increase may be limited to less than
500,000 barrels a day over six months and the country will
struggle to sell its condensate stockpiled on tankers, he said.
Hedge funds and other speculators, having cut bullish bets
on WTI crude to the lowest level since March, may be ready to
start buying again as low prices cause the market to tighten.
“We are approaching selling exhaustion,” Ross said. “The
magic of prices works.”

For Related News and Information:
Saudis Pump Record Oil as OPEC Sees Stronger Demand in 2016
Saudi Arabia Pumps Oil Flat Out in Citi, Goldman’s New Oil Order

--With assistance from Angelina Rascouet in London.

To contact the reporters on this story:
Javier Blas in London at +44-203-525-9426 or
jblas3@bloomberg.net;
Grant Smith in London at +44-20-3525-7353 or
gsmith52@bloomberg.net
To contact the editors responsible for this story:
Will Kennedy at +44-20-3525-3603 or
wkennedy3@bloomberg.net
Amanda Jordan, Randall Hackley

Reuters - Bonduelle prepares bid for Green Giant

Bonduelle prepares bid for Green Giant Link : http://reut.rs/1TNpsUh


French food group Bonduelle SCA (BOND.PA) is in discussions to team up with Centerview Partners in a bid to acquire General Mills Inc's (GIS.N) Green Giant frozen and canned vegetable business, according to people familiar with the matter.

Joining with the private equity arm of investment bank Centerview would give Bonduelle, which has a market capitalization of 796 million euros ($861 million), more capital and additional expertise in its pursuit of Green Giant.

The potential consortium of Bonduelle and Centerview would compete against other bidders for the asset, and there is no certainty that Bonduelle's offer would prevail, the people said on Monday.

The sources asked not to be identified because details of the sale process are confidential. General Mills and Centerview declined to comment. Bonduelle could not be immediately reached for comment.
Minneapolis-based General Gillis hired investment bank Rothschild to explore a sale of Green Giant, Reuters reported in March. Green Giant has approximately $700 million in annual revenue, sources told Reuters at the time.

Green Giant, whose mascot is the Jolly Green Giant, makes more than 160 different products, including steamed and canned vegetables, corn on the cob, chips and hummus.
Green Giant has struggled as consumer preferences shift away from sauced varieties towards more plain vegetables, Jeff Harmening, chief operating officer at General Mills, told investors and analysts at the company's fiscal 2016 investor day last week.

Based in Villeneuve d'Ascq, France, Bonduelle owns manufacturing facilities in Canada that produce canned goods for Green Giant. Bonduelle Chief Executive Christophe Bonduelle told French newspaper Les Echos in 2010 the company would be interested in acquiring Green Giant but not at any cost.
Green Giant would not be the Bonduelle's first North American acquisition. It has also purchased certain vegetable operations from Allens, a U.S.-based canned and frozen vegetable company, and Canadian vegetable companies Omstead Foods, Family Tradition Foods and Aliments Carrière.

>>> Asian Update

Asian Mid-session Update: Shanghai shrugs deleveraging calls as PBoC continues to inject liquidity

***Economic Data***
- (AU) Australia ANZ Roy Morgan Weekly Consumer Confidence Index: 111.8 V 107.0 prior
- (CN) China Jun Foreign Direct Investment (FDI) Y/Y: 0.7% v 0.5%e
- (NZ) NEW ZEALAND JUL RETAIL CREDIT CARD SPENDING M/M: 0.3% V 1.9% PRIOR; Y/Y 6.5% V 7.1% PRIOR
- (NZ) New Zealand Jun Net Migration: 4.8K v 5.1K prior

***Index Snapshot (as of 02:30 GMT)***
- Nikkei225 +0.4%, S&P/ASX +0.3%, Kospi flat, Shanghai Composite -0.6%, Hang Seng +0.3%, Sept S&P500 -0.1% at 2,120

***Commodities/Fixed Income***
- Aug gold -0.3% at $1,103/oz, Sept crude oil -0.3% at $50.30/brl, Sept copper +0.3% at $2.49/lb
- GLD: SPDR Gold Trust ETF daily holdings fall 1.8 tonnes to 694.5 tonnes; lowest since Sept 2008
- USD/CNY: PBoC sets yuan mid point at 6.1199 v 6.1197 prior setting (weakest Yuan setting since Jun 8th)
- (CN) PBoC to inject CNY35B in 7-day reverse repos (8th consecutive injection); Offer yield at 2.5%, unchanged from prior
- (JP) BOJ offers to buy ¥70B in JGBs with maturity less than 1-yr and ¥400B in 5-10yr JGBs

***Market Focal Points/FX***
- Asia indices are mixed again in the absence of conviction in trading on Wall St or significant economic data. Shanghai Composite opened down by over 1% but has since come off those lows and approaching its midday break with an upswing above 4,000. Australia's ASX200 is also up about 0.4% halfway through its session, even though quarterly production metrics from some of its miners remain underwhelming.

- Among notable local press reports, PBoC official Sheng said the central bank would continued to maintain liquidity at a moderate level. To that end, in its latest OMO operation PBoC injected another CNY35B through 7-day reverse repos. Also of note, non-broker margin lenders in China had reportedly requested that clients sell off some of their stock holdings purchased with margin debt - further evidence regulators are looking to rein in some of the recent volatility fanned by runaway credit.

- RBA released the minutes of its July meeting and continued to straddle both sides of the fence, which is likely to keep expectations of further policy easing in check. On the one hand, RBA warned the strength in Q1 GDP had not carried over into Q2. On the other, the central bank notes significant labor demand which should succeed in lowering Australia's jobless rate further. RBA reiterated inflationary pressure is well contained and called for further AUD decline to assist economic recovery. After some initial volatility on the release, AUD/USD sold off by about 20pips toward $0.7350 following minutes release. In contrast, NZD/USD rallied about 50pips toward $0.66 on bargain hunting.

- The BOJ also put out a set of meeting minutes, though this release was outdated relative to the more recent decision when the central bank cut its GDP and inflation forecasts. In its June 18th meeting, many members agreed the easing is having intended effects, though a minority also remarked the effects might be diminishing given the recent runup in JGB yields. FX traders interpreted that sentiment as boosting the possibility of more aggressive policy response, and USD/JPY rose some 10pips following the comments toward 124.40 - a 1-month high.

***Equities***
US equities / ADRs:
- QCOM: Said to be preparing to conduct a large-scale strategic review that may lead to possible breakup; May also boost shareholder returns - financial press; +2.7% afterhours
- CNI: Reports Q2 C$1.15 v C$1.03 y/y, Rev C$3.13B v C$3.12B y/y; +0.9% afterhours
- STLD: Reports Q2 $0.22 v $0.22e, R$2.01B v $2.08Be; +0.6% afterhours
- IBM: Reports Q2 $3.84 v $3.80e, R$20.8B v $21.0Be; -5.3% afterhours

Notable movers by sector:
- Consumer discretionary: Spring Airlines Co 601021.CN -10.0% (private placement)
- Financials: China Pacific Insurance Group 2601.HK +3.9% (H1 guidance)
- Industrials: Tianjin Marine Shipping 600751.CN +5.5% (H1 guidance); Sinosteel Engineering & Technology Co L 000928.CN -4.0% (H1 result); CPI Yuanda Environmental-Protection Group 600292.CN +2.0% (H1 result); Dongfang Electric Corp 600875.CN -2.9% (H1 guidance); Macquarie Atlas Roads Group MQA.AU +5.1% (Q2 result); Daewoo Shipbuilding & Marine 042660.KR +17.1% (layoff speculation)
- Technology: Toshiba Corporation 6502.JP +3.7% (accounting irregularities update)
- Materials: Evolution Mining EVN.AU +2.6% (Q4 result); OZ Minerals OZL.AU -2.0% (Q2 result)
- Energy: China Shenhua Energy Co 1088.HK -1.0% (H1 result); Anton Oilfield Services Group 3337.HK +1.3% (Q2 result); Wintime Energy Co 600157.CN +1.0% (H1 result); Oil Search OSH.AU +3.1% (Q2 result)
- Utilities: Shanghai Electric Power 600021.CN -1.9% (H1 guidance)
- Telecom: China Telecom 728.HK +5.9% (June operational data); China Unicom 762.HK +7.5% (June operational data)

>>> US After Hours Summary: SANM +11.4%, CNI +3.1%, BSX +2.3%, IBM -5.

After Hours Summary: SANM +11.4%, CNI +3.1%, BSX +2.3%, IBM -5.0%, HXL -2.7%, WERN -1.1% following earnings/guidance

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings: SANM +11.4%, CNI +3.1%, BSX +2.3%, HLX +1.8%, MDCA +1.1%, CCK +0.9%, STLD +0.6%, WWD +0.6%

Companies trading higher in after hours in reaction to news: FNF +4.5% (increased quarterly dividend to $0.21 from $0.19/share; approved new FNF Group three-year stock repurchase program), CNX +2.0% (Southeastern Asset Management discloses 21.1% active stake in 13D filing), MDCA +1.1% (announced that Miles S. Nadal has retired as CEO and Chairman of the Board; Scott L. Kauffman named Chairman and CEO; Michael Sabatino, formerly Chief Accounting Officer, has resigned; co also reaffirmed FY15 guidance), PVA +0.8% (co's CEO and President Baird Whitehead announced his retirement; Board has retained recruiting firm to find replacement)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings: IBM -5.0%, HXL -2.7%, WERN -1.1%, RMBS -0.7%, FIBK -0.1%

Companies trading lower in after hours in reaction to news: CYTR -15.3% (announced public offering of its common stock; size not disclosed), RNO -5.6% (announced suspension of Q2 distribution), EXAS -5.1% (to sell 7 mln shares of common stock in an underwritten public offering), UNFI -4.9% (announced that its contract as a distributor to Albertsons will terminate on September 20, 2015, rather than upon the original contract end date of July 31, 2016), SHAK -4.2% (filed for 4 mln share common stock offering by selling shareholders), ADPT -1.5% (filed for offering of common stock, size not disclosed)

>>> IBM beats by $0.05, reports revs in-line; reaffirms FY15 EPS guidance

IBM beats by $0.05, reports revs in-line; reaffirms FY15 EPS guidance, raises FCF modestly

Reports Q2 (Jun) earnings of $3.84 per share, excluding non-recurring items, $0.05 better than the Capital IQ Consensus of $3.79; revenues fell 13.4% year/year to $20.81 bln vs the $20.94 bln consensus.
Down 1% year-to-year adjusting for currency and the divested System x business (9 points and 4 points, respectively); down 13% as reported;
Strategic imperatives revenue up more than 30% adjusting for currency and the divested System x business; up more than 20% as reported;
Cloud revenue up more than 70% adjusting for currency and divested businesses; up more than 50% as reported;
For cloud delivered as a service, annual run rate of $4.5 bln compared to $2.8 bln in the second quarter of 2014;
Business analytics revenue up more than 20% adjusting for currency; up more than 10% as reported.
Adj. gross margin +20 bps to 50.9%
Co reaffirms guidance for FY15, sees EPS of $15.75-16.50, excluding non-recurring items, vs. $15.84 Capital IQ Consensus.
IBM now expects a modest increase in free cash flow, improved from its prior expectation of flat year-to-year performance.

>>> US Close Dow+0.08% S&P+0.08% NAsdaq+0.17% Russell-0.54%

Closing Market Summary: Nasdaq Sets Another Record Close

The stock market began the week on a higher, albeit sleepy, note with the S&P 500 (+0.1%) testing its record close from May. The benchmark index backed away from its session high into the close, settling a bit behind the Nasdaq Composite (+0.2%), which marked a fresh closing record high at 5,218.86.

Equity indices started the Monday session near their flat lines with the S&P 500 spending the initial hour in the red; however, influential sectors like technology (+0.5%), financials (+0.1%), and health care (+0.3%) displayed early strength, underpinning the broader market.

The S&P 500 was back in the green by 11:00 ET and slowly inched higher into the afternoon. Seven sectors ended the day with gains while energy (-1.3%), materials (-0.9%), and utilities (-0.5%) spent the session below their flat lines.

Notably, the energy sector retreated alongside crude oil, which fell 1.6% to $50.40/bbl. Meanwhile, the growth-sensitive sector struggled throughout the session, widening its July loss to 4.5%, even after Halliburton (HAL 40.75, +0.76) climbed 1.9% after reporting better than expected results.

On the upside, the technology sector held the lead throughout the session with gains among the likes of Apple (AAPL 132.07, +2.45), Facebook (FB 97.91, +2.94), and Visa (V 72.70, +1.82) overshadowing a 1.0% decline in the shares of Google (GOOGL 692.84, -6.78). Also of note, IBM (IBM 173.22, +0.71) gained 0.4% ahead of its quarterly report.

Interestingly, high-beta chipmakers could not keep pace with the technology sector, evidenced by a 0.7% decline in the PHLX Semiconductor Index. Similarly, high-beta transport stocks struggled (Dow Jones Transportation Average -0.4%) while the broader industrial sector (unch) settled just above its flat line. Lockheed Martin (LMT 205.13, +3.95) was in the news, spiking 2.0% after reporting better than expected results and announcing the acquisition of the Sikorsky helicopter unit from United Technologies (UTX 110.48, -0.26) for $9.0 billion in cash.

Elsewhere, Treasuries slipped into the red during overnight action and they settled near their overnight lows with the 10-yr yield rising two basis points to 2.37%.

Investor participation was relatively light today with 720 million shares changing hands at the NYSE floor.

Today's session was free of economic data and investors will not receive any data tomorrow either.
  • Nasdaq Composite +10.2% YTD 
  • Russell 2000 +4.6% YTD 
  • S&P 500 +3.4% YTD 
  • Dow Jones Industrial Average +1.6% YTD

(BFW) Ahold’s Stop & Shop Unit to Buy 25 A&P Stores in Greater N.Y.


BN 07/20 16:02 *AHOLD SAYS TRANSACTION EXPECTED TO BE CLOSED IN 2H 2015
BN 07/20 16:02 *AHOLD TO PAY $146M FOR STORES
BN 07/20 16:01 *AHOLD'S STOP & SHOP TO BUY 25 A&P STORES GREATER NEW YORK
BN 07/20 16:01 *AHOLD'S STOP & SHOP DIVISION TO ACQUIRE 25 A&P STORES IN
Ahold’s Stop & Shop Unit to Buy 25 A&P Stores in Greater N.Y.
2015-07-20 16:11:31.311 GMT


By Janet Freund
(Bloomberg) -- Ahold’s Stop & Shop division to acquire 25
A&P stores from Great Atlantic & Pacific Tea Co. in Greater New
York area for $146m.

* Upon completion, Stop & Shop plans to convert Waldbaums,
Pathmark, A&P stores that are part of agreement into Stop &
Shop stores
* Deal expected to close in 2H15
* NOTE: Earlier, A&P to File for Bankruptcy; Has Bidders for
120 Stores: WSJ
Link to Statement:Link

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

To contact the reporter on this story:
Janet Freund in New York at +1-212-617-8408 or
jfreund11@bloomberg.net
To contact the editors responsible for this story:
Arie Shapira at +1-212-617-1488 or
ashapira3@bloomberg.net
Janet Freund