>>> Weekly Fed Balance Sheet Total Assets for week ending Apr 8th: $4.48T v $4.4

Weekly Fed Balance Sheet Total Assets for week ending Apr 8th: $4.48T v $4.48T prior; Reserve Bank Credit: $4.45T v $4.44T prior; M1: +$1.9B v +$4.6B prior; M2: +$10.5B v +$2.8B prior 

- Foreign central bank holdings of US Treasuries: $2.96T v $2.96T w/w
- Fed holdings of Treasuries: $2.46T v $2.46T w/w
- Fed holdings of agency securities: $36.9B v $36.9B w/w
- Fed holdings of mortgage backed assets: $1.73T v $1.73T w/w 
- Total Fed central bank currency swaps: $0 v $0.8M w/w

M1 and M2 percent change at seasonally adjusted annual rates for last 13 weeks y/y: 
- M1 y/y change: 9.2% v 9.3% w/w 
- M2 y/y change: 6.1% v 6.1% w/w 

M1 and M2 percent change at seasonally adjusted annual rates for the comparable week in 2014: 
- M1 y/y change: 8.4% v 8.8% w/w 
- M2 y/y change: 5.9% v 5.9% w/w

>>> Citrix Systems (halted, will resume trading at 16:30) lowers Q1 guidance

Citrix Systems (halted, will resume trading at 16:30) lowers Q1 guidance 

Co issues downside guidance for Q1 (Mar), sees EPS of $0.63-0.65, excluding non-recurring items, vs. $0.72 Capital IQ Consensus Estimate; sees Q1 (Mar) revs of $755-760 mln vs. $786.65 mln Capital IQ Consensus Estimate.

"We are disappointed with our Q1 results, but fully committed to the financial, operational and strategic initiatives announced last quarter. We underestimated the impact caused by our restructuring, organizational evolution, and changes to our field and channel strategies, which were the result of important decisions made to get the business ready for our next phase of growth. Additionally, the increase in foreign exchange volatility impacted results and customer-buying behavior to a larger extent than anticipated in the quarter."

>>> US Close Dow+0,31% S&P+0,46% Nasdaq+0,48% Russell-0,32%


Closing Market Summary: Energy Sector Leads Stocks Higher

The stock market ended Thursday on a modestly higher note after enduring a volatile session. The S&P 500 added 0.5% after finding support at its 50-day moving average (2,076) while small caps struggled with the Russell 2000 sliding 0.4%.

Equity indices rallied out of the gate after index futures erased their overnight losses. However, the cash market did not escape without making its own appearance in the red, but the morning pullback was limited in scope. The S&P 500 briefly dipped below its 50-day moving average and returned into the green in short order. The bulk of the afternoon saw the index range near its unchanged level, but the final hour of action featured a surge to a fresh high for the day.

Eight of ten sectors registered gains with all six cyclical groups ending higher. The growth-sensitive bunch was led by energy (+1.6%), which held the lead throughout the day. The sector held its own while crude oil slumped from its intraday high, but still rose 0.7% to $50.81/bbl.

Meanwhile, the remaining cyclical sectors posted slimmer gains with materials (+0.4%) ending ahead of the broader market. Relative strength among steelmakers and chemical-related names overshadowed Alcoa's (AA 13.22, -0.45) 3.3% decline after the company reported a two-cent beat on below-consensus revenue. In addition, Alcoa said it expects aluminum demand to grow by 6.5% in 2015 after revising its 2014 global demand growth to 9.0% from 7.0%.

Elsewhere among cyclical sectors, technology (+0.3%) lagged in the early going, but narrowed the gap by the close. Intel (INTC 31.24, -0.07) shed 0.2% after it was reported the company is no longer looking to acquire Altera (ALTR 43.33, +1.33) after the two could not agree on a purchase price. Strikingly, Altera was down more than 7.0% in the early going, but managed to end the day higher by 3.2%.

Also of note, the discretionary sector (+0.1%) struggled to keep pace amid weakness in retail names in reaction to disappointing same store sales in March. The SPDR S&P Retail ETF (XRT 101.11, -0.40) lost 0.4%.

Over on the countercyclical side, the health care sector (+0.8%) outperformed throughout the session while biotechnology could not overtake its early high. Still, the iShares Nasdaq Biotechnology ETF (IBB 353.06, +1.05) added 0.3%.

Treasuries retreated throughout the day with the 10-yr yield climbing six basis points to 1.96%.

Today's participation was comparable to recent sessions with more than 675 million shares changing hands at the NYSE floor.

Economic data was limited to initial claims and wholesale inventories:
  • The initial claims level increased to 281,000 for the week ending April 4 from a downwardly revised 267,000 (from 268,000) for the week ending March 28 
    • The consensus expected an increase to 285,000 
    • The four-week moving average has dropped to 282,250 from 285,250, representing the lowest level since June 2000 
  • Wholesale inventories increased 0.3% in February after increasing an upwardly revised 0.4% (from 0.3%) in January 
    • The consensus expected an increase of 0.2% 
    • Wholesale durable goods inventories increased 0.3% in February, down from a 0.7% increase in January 
      • Automotive inventories, up 2.4%, offset declines in most other sectors 
Tomorrow, Import/Export Prices for March will be released at 8:30 ET while the March Treasury Budget (consensus -$44.00 billion) will cross the wires at 14:00 ET.

>>> ALTR: Quick thoughts on ALTR rejection of INTC

ALTR - The reported $54.00 cash offer is a 51% price premium to the $35.88 prior 20 day average close price and a 10% price premium to the five year high price of $49.25 (2Q11). FSL, a mostly stock / some cash merger with NXPI, is trading near $41.25/share, a 25% premium to its adjusted $33/share pre-deal average closing price (post-earnings, pre-speculation). The FSL 2016E deal valuation multiples ($12.6B market cap, 17.6B EV) are 3.4x EV/Revs ($5.2B, up 5.5% YoY), 13.7x EV/EBITDA ($1.28B, up 8.5% YoY, 24% margin), 16.1x P/E ($2.57 EPS, up 22% YoY) and 1.3x PEG (15% LT growth rate).

At the prior 20 day price, ALTR 2016E valuation multiples were 4.5x EV/Revs ($2.14B, up 7.5% YoY), 13.3x EV/EBITDA ($732M, up 15.7% YoY, 34% margin) and 18.7x P/E ($1.92, up 18.5% YoY, 10% tax rate). ALTR a $54/share ($16.3B market cap, $15.2B EV) implies 2016E valuation multiples of 7.1x EV/Revs, 20.7x EV/EBITDA, 28x P/E and 2.45 PEG (11.5% LT growth rate); assuming $200M synergies (9% revenues), the adjusted valuation multiples are 16.3x EV/EBITDA ($932M, 44% margin), 21.4x P/E ($2.52 EPS) and 1.9 PEG.

The INTC 2016E valuation multiples ($32/share, $151B market cap, $169B EV) are 2.6x EV/Revs ($58.2B, up 5% YoY), 6.0x EV/EBITDA ($25.4B, up 9.5% YoY, 44% margin), 13x P/E ($2.47 EPS, up 12.8% YoY, 26% tax rate) and 1.6x PEG (8.2% LT growth rate). Assuming 4.5% deal interest expense and $200M synergies, a $54/share ALTR deal price would be 2% accretive to INTC 2016E P/F $2.52 EPS; debt leverage would be 1.3x 2015E EBITDA (0.6x including P/F adjusted cash). A $58/share deal (5% deal interest cost) would produce INTC 2016E P/F $2.49 EPS (1% accretive). AVGO, mentioned as an alternative ALTR suitor, has 2016E valuation multiples ($128/share, $32.8B market cap, $35.8B EV) of 4.8x EV/Revs ($7.4B, up 8.8% YoY), 9.5x EV/EBITDA ($3.764B, up 8.7% YoY, 51% margin), 14.2x P/E ($9.04 EPS, up 6.7% YoY, 10% tax rate) and 0.7x PEG (20.7% LT growth rate).

While a 51% price premium for ALTR seems more than adequate, the issue may be the 100% cash consideration instead of a stock /cash consideration that AVGO would possibly offer (due to its smaller relative market cap to INTC). The AVGO valuation multiples are above those of INTC but still well below those of ALTR, thus any price rerating would be driven by the expected deal synergies. AVGO could offer a slightly above market premium for ALTR shares (similar to the FSL/NXPI transaction) and then let an increase in its stock price valuation drive the total deal value. The NXPI share price is up 20% since announcing the FSL deal. A similar deal structure (at a ~$46 stated value based on 0.3 AVGO shares plus $7.60 cash) and 20% AVGO price appreciation ($153.50/share) implies a $53.65 deal value. A 10%-15% AVGO price gain implies ~$50-$52/share deal value, which still may be more attractive to ALTR given the potential upside of the combined company plus the tax efficiency of mostly stock consideration. Then again, ALTR’s rejection (after reportedly talking to INTC for months) may just be a tactic to squeeze the buyer for a higher cash consideration.

(BFW) Bollore Spends EU800m to Buy Further 2.51% of Vivendi

ONE 04/09 18:02 BOLLORE: LE GROUPE BOLLORÉ DÉTIENT PLUS DE 14,5 % DE VIVENDI
BFW 04/09 18:06 *GROUPE BOLLORÉ NOW HOLDS MORE THAN 14.5% OF VIVENDI
BFW 04/09 18:05 *BOLLORE BUYS FURTHER 2.51% OF VIVENDI
BN 04/09 18:04 *BOLLORE NOW OWNS 196M SHRS VIVENDI, EQUAL TO EU4.7B
BN 04/09 18:04 *GROUPE BOLLORÉ NOW HOLDS MORE THAN 14.5% OF VIVENDI
BN 04/09 18:04 *BOLLORE BUYS FURTHER 2.51% OF VIVENDI
BN 04/09 18:03 *BOLLORE OWNS MORE THAN 14.5% VIVENDI
Bollore Spends EU800m to Buy Further 2.51% of Vivendi
2015-04-09 18:09:06.952 GMT


By Robin Stringer
(Bloomberg) -- Bollore now owns 14.52% of Vivendi, worth
around EU4.7b based on stock price, holding co. says in
statement.
* NOTE: Yday, Vivendi Plans Extra Payout in Compromise With
Shareholder Link
Link to Statement:Link
Link to Company News:{VIV FP <Equity> CN <GO>}
Link to Company News:{BOL FP <Equity> CN <GO>}

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

To contact the editor responsible for this story:
Robin Stringer at +1-212-617-2526 or
rstringer7@bloomberg.net

(BN) Mylan Bid for Perrigo May Make Both Drugmakers Targets: Real M&A


Mylan Bid for Perrigo May Make Both Drugmakers Targets: Real M&A
2015-04-09 17:08:23.618 GMT


By Tara Lachapelle
(Bloomberg) -- Mylan NV’s $28.9 billion bid for Perrigo Co.
could end up putting both companies in play.
Mylan’s April 6 offer for Perrigo came less than a week
after the company implemented its own provision to defend
against an unwanted takeover. Since then, analysts have said
that $33 billion Mylan would be a nice fit for Teva
Pharmaceutical Industries Ltd. Teva needs to offset an impending
drop in earnings when cheaper copies of its top drug hit the
market.
Mylan could avoid getting bought by Teva or another
drugmaker if it if can strike a deal with Perrigo -- yet so far
its offer may be short of what’s needed, which could draw in
competitors for a deal.
Mylan’s bid values Perrigo at 26 times earnings before
interest, taxes, depreciation and amortization. While that’s a
rich multiple, it’s lower than the 30-plus-times Ebitda other
drug industry buyers have been willing to pay during a record
period of takeovers, according to data compiled by Bloomberg.
“The most interesting thing about this deal is that shares
of the buyer and seller -- and all the associated companies --
have gone up, which means the valuation isn’t at a level where
people are concerned yet,” said Ronny Gal, an analyst with
Sanford C. Bernstein & Co.
Since the offer was disclosed Wednesday, Mylan has risen 20
percent, almost as much as Perrigo. Teva also climbed.
“I think what happens next is the board of Teva will meet
and decide whether they want to enter the fray,” Gal said.

Other Suitors

Regardless of what Teva decides to do, there still could be
other suitors for Perrigo. Gal says it’s possible that Johnson &
Johnson, which also sells to drug stores, or health-products
distributor AmerisourceBergen Corp. could take a look. While
Pfizer Inc. and Actavis Plc are busy trying to close other
purchases, they can’t be ruled out. And don’t forget about deal-
hungry Valeant Pharmaceuticals International Inc.
With its tax-advantaged structure, Valeant could probably
afford to make the biggest offer, according to Albert Fried &
Co.’s Sachin Shah. Shah says there’s also a chance that Perrigo
turns the tables and tries to buy Mylan or finds another target.
Teva, valued at $58 billion, has entertained a large deal
for a generic drugmaker but doesn’t want to overpay, according
to a person familiar with the matter who asked not to be
identified because the strategy is private. The person said Teva
Chief Executive Officer Erez Vigodman is more interested in
smaller deals that get the company into countries where it
doesn’t have a big generic-drug business, or give it new brand-
name neurology and respiratory products.
Representatives for Teva, Pfizer, Mylan and Valeant
declined to comment. Representatives for J&J, AmerisourceBergen
and Actavis didn’t immediately respond to requests for comment.
Perrigo said in a statement Wednesday that its board “will
meet to discuss the proposal and a further announcement will be
made when appropriate.”

For Related News and Information:
Teva Mulls Next Move as Mylan’s Perrigo Bid Jolts Drugmakers
Mylan Offers to Buy Drugmaker Perrigo for $28.9 Billion
Teva Set to Resume Deals After Investors Reward Rivals: Real M&A
Real M&A columns: NI REALMNA <GO>
Top deal stories: DTOP <GO>
Merger Calculator: MRGC <GO>

To contact the reporter on this story:
Tara Lachapelle in New York at +1-212-617-8911 or
tlachapelle@bloomberg.net
To contact the editors responsible for this story:
Beth Williams at +1-212-617-2307 or
bewilliams@bloomberg.net;
Crayton Harrison at +1-212-617-6145 or
tharrison5@bloomberg.net
Drew Armstrong, Elizabeth Wollman