>>> SFER +3.3% BRBY +4.5% MONC +2.75% TOD +2.1%...BC +2.10%

it looks like Luxury is on fire..rumors that US Companies looking for M&A in europe...
one of the very interesting logic as growth in the sector is not as good as it used to be, another wave of consolidation will be the next chapter of this sector....

If US companies are coming to "shop" in Europe, not sure LVMH. Kering & Richmenont won't hit back...

>>> Burberry shares gain on talk of possible bid from US competitor or private e

Burberry shares gain on talk of possible bid from US competitor or private equity -Daily Mail

Burberry Group shares gained 1.69% yesterday, 8 April, on talk that a US-based competitor or private equity firms might make an offer for the UK-based luxury goods company, The Daily Mail reported. The newspaper’s market report section did not cite a source for the speculation.

Burberry’s share price closed 29p up at 1743p in London yesterday, 8 April, giving the company a market capitalisation of GBP 7.75bn (EUR 10.69bn).

Daily Mail

(BN) Vivendi Plans Extra Payout in Compromise With Activist Investor

Vivendi Plans Extra Payout in Compromise With Activist Investor
2015-04-08 19:29:47.433 GMT


By Rudy Ruitenberg and Marie Mawad
(Bloomberg) -- Vivendi SA agreed to pay an additional
dividend of 2 euros ($2.16) a share to accommodate demands by
Wall Street activist Peter Schoenfeld for bigger returns.
The Paris-based owner of France’s biggest pay-TV company
and the world’s largest music company said in an e-mailed
statement it will consider further payouts should its
acquisition strategy require less cash than expected over the
next two years.
The compromise with Schoenfeld ends a more than two-week
battle between the activist investor and Vivendi over how the
company should spend its cash pile, amassed from selling nearly
$30 billion of assets. Vivendi is helmed by billionaire
businessman Vincent Bollore, the company’s chairman and biggest
shareholder.
“Vivendi’s management board decided that, in order to
reach consensus with some minority shareholders, payouts to
shareholders could be accelerated,” the company said.
As the company prepares for its annual shareholder meeting
on April 17, Schoenfeld had argued management isn’t handing
enough money to shareholders, and filed a resolution for a
bigger dividend. The founder of P. Schoenfeld Asset Management
called for higher returns from Vivendi’s 18 billion-euro cash
pile, demanding 9 billion euros in payouts and the sale of the
Universal Music Group unit.
Following meetings in recent days, PSAM told management it
accepts the company’s strategy of building on the assets of
Universal Music and TV unit Canal Plus, and withdraws its draft
resolutions, Vivendi said.
Vivendi has been seeking acquisitions to add to its
television and music assets and build a bigger media business.
The company this week disclosed exclusive talks to buy Orange
SA’s Internet video service Dailymotion, a rival to YouTube.
Vivendi’s February proposal to return 5.7 billion euros
through dividends and buybacks was lower than analysts expected,
and repurchases were capped to shares priced at a maximum of 20
euros each -- the stock has been above that price since January.
The additional payouts will be made as a 1-euro dividend in
the fourth quarter of this year and another in the first quarter
of 2016, raising the total return to shareholders to 6.75
billion euros, Vivendi said.

For Related News and Information:
Developed Markets View: DMMV <GO>
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Stoxx 600 Market Map: SXXP <Index> IMAP <GO>
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Equity Screening: EQS <GO>

To contact the reporters on this story:
Rudy Ruitenberg in Paris at +33-1-5365-5039 or
rruitenberg@bloomberg.net;
Marie Mawad in Paris at +33-1-5530-6290 or
mmawad1@bloomberg.net
To contact the editors responsible for this story:
Lynn Thomasson at +44-20-3525-9815 or
lthomasson@bloomberg.net
James Kraus, Jim Silver

(Barcap) Wirecard : M&A very much on the agenda

*WIRECARD (OW) Raise PT to €45.00 from €40.00. “M&A very much on the agenda” With the headline metrics already preannounced and no change to guidance, it is hard to get excited by Wirecard announcing its full year report. Nonetheless, the detail confirms that Wirecard had an exceptionally strong close to the year with organic growth at a high and backing up management confidence which has built through the year. The theme of the analyst conference call was obviously M&A and we anticipate a move to increase the footprint in the Americas over the coming 18 months. In addition, FX was downplayed, but USD exposure is likely to benefit Wirecard's growth further in 2015, on our estimates. Following the market rerating, we increase our price target to EUR45 at 29x FY16E PE and reiterate Overweight.

(Barcap) European Capital Good : Mechanicals: Irrational exuberance?

Excluding our oil & gas names, European mechanicals are up 23% so far in 2015 (12% in USD), led by the Europe-centric short-cycle names. Only the Auto sector has performed better. With sustained upward momentum in the European leading indicators, it is unsurprising that we have seen a pro-cyclical rotation, but as we look ahead to the Q1 earnings season we ask: Can the sector live up to the heightened expectations? We think our O&G exposed names continue to look most vulnerable, but note that SKF – the sector’s purest play on European IP recovery –
has now become the most shorted name in the sector. Among the mechanicals, Atlas Copco and GEA remain our preferred names, Alfa Laval and Metso least preferred. For our European Capital Goods sector Schneider remains our Top Pick.

>>> Perrigo could see more bids on back of Mylan offer

Deal Reporter

Perrigo could see more bids on back of Mylan offer

Mylan’s (NASDAQ:MYL) USD 29bn offer for Perrigo (NYSE:PRGO), made public on Wednesday, could lead to a land grab in the specialty pharmaceuticals sector with more bidders joining the fray, according to two industry bankers and three investors.

Mylan, based in the UK, disclosed in a public letter that it made a USD 205 per share offer for Perrigo, saying such a combination “offers clear and compelling strategic and financial benefits.” In response Dublin-based Perrigo said its board would “discuss the proposal” and would comment “when appropriate.”

Both Mylan and Perrigo shares surged on the news, with Perrigo closing up 18.4% to USD 195 and Mylan up 14.7% to USD 68.36. Others major players in generic and branded pharmaceuticals also made gains, including Teva Pharmaceutical Industries (NYSE:TEVA), which rose 3.5% to USD 66.52.

The two industry bankers said Mylan’s offer for Perrigo could be a defensive move to ward off Teva, which has recently been viewed as taking an interest in buying Mylan.

According to the first industry banker and a Perrigo shareholder, Teva, the largest of the three companies, would likely prefer to do a friendly deal and, as such, would unlikely go hostile. If Mylan succeeds in taking over Perrigo, the chances of a Teva-Perrigo combination are less likely. The same banker and the shareholder described Mylan’s move as “smart and aggressive.”

Teva and Perrigo were not immediately available for comment.

“Mylan has been speculated as a target for Teva for a while and [Teva] needs to do a big acquisition,” said one of the bankers. The second banker said Mylan Executive Chairman Robert Coury would want to be “master” of any expanded Mylan, which may not be afforded in a Teva takeover, giving credence to the idea that among Mylan’s reasons for buying Perrigo could be to fend off Teva.

Both bankers speculated that Mylan’s bid for Perrigo could lead to both companies becoming takeover targets by the likes of Actavis (NYSE:ACT), Novartis (NYSE:NVS), Valeant (NYSE:VRX) or Pfizer (NYSE:PFE), all of which have demonstrated interest in large deals.

“Mylan’s stock is up not necessarily because their shareholders love this deal, but because there is a chance that someone else comes in for Mylan,” said the first banker.

Two Perrigo shareholders said others like Cardinal Health (NYSE:CAH), Sanofi (NYSE:SNY) and Abbott Laboratories (NYSE:ABT) could also take a look at Perrigo. One of these shareholders said big pharma companies like sustainability of cash flow and global infrastructure, and Perrigo brings that to the table.

However, the first banker was not as bullish on big pharma companies chasing either Mylan or Perrigo.

One healthcare industry investor who does not own either stock said he believed both Mylan and Perrigo shares were up because investors like the synergies and accretion that would be offered by a merger. But he also agreed with the bankers that such a deal could prompt Teva to make a move for Mylan.

“Synergies between Teva and Mylan would be enormous,” this investor said. “There could be some antitrust issues but they are surmountable.”

The second industry banker agreed that any combination of the three and with others could face antitrust issues but was of the view that approvals could be obtained with product divestitures.

In the letter, Mylan said it had retained Goldman Sachs as its advisor. It was not immediately clear which bank was advising Perrigo. In its last major deal, the USD 4.7bn agreed purchase of Belgium’s Omega Pharma last November, Perrigo was advised by JPMorgan and Barclays.

The first industry banker said if Perrigo agrees to allow Mylan to do due diligence, there was a reasonable chance it could lead to a higher offer. But the banker cautioned that Perrigo CEO Joseph Papa has his own acquisition strategy and may not want to sell.

The first Perrigo shareholder said the company has been underperforming for a while and on an unaffected price of USD 165, prior to Mylan’s move, a 45% premium could bring the valuation to USD 230 to USD 240. With Mylan stock having moved up today, the current value of the offer is likely already higher than USD 205 per share. He and the first banker said it is hard to ascertain the offer’s worth, as Mylan did not provide any breakdown of the cash-and-stock offer.

In an interview with this news service in February, Perrigo’s Papa said his strategy is to become a worldwide provider of generic and branded healthcare products, using the Omega acquisition as a platform for European expansion and a possible Asian acquisition as a platform for growth in China and other Asian countries. This news service further reported that a combination between Mylan and Perrigo would be highly synergistic.

>>> What to look at today - 9th of April 2015

Dow+0,15% S&P+0,27% Nasdaq+0,83% Russell+0,75%
US Market closed higher, Nasdaq helped by biotech (ie Mylan's $205/share bid for PErrigo), last API report (inventory +10.9mil) pushed Crude down 6.5% to $50.44...Large tech company were under pressure after Apple by SG ahead of iWatch oepning opening of booking.According to the minutes, FOMC members were split over whether June would be the right time to begin raising rates. Several members believed that recent data and the outlook warranted a rate hike in June while others voiced concerns that the economic outlook would not be strong enough to support a rate hike in the near term. volume were close to average @ 750mil shares...Alcoa reported beats on EPS but below Rev....After Hours APOG +5.2%, PIR +4.7%, MG -6.3%, AA -3.4%, BBBY -3.3% following earnings/guidance...WOCS +36% on new contract...ZNGA -10% on departure of CEO...Asia experienced a volatile session today. Shanghai Composite opened above 4,000 level for the first time in 7 years, but then traded sharply lower, finished morning session down by 1.2%. Hong Kong Hang Seng Index continued its fascinating momentum in early session, as the index once traded higher by as much as 8%, and then pared gains to around 27,200 level...China Premier Li confirmed that China will cut iron-ore resources tax to help the real economy. Resources stocks in Australia are being hit hard early on fears that Chinese authorities will keep uneconomic iron ore miners afloat, while energy names have fallen sharply in line with the reversal in the oil price overnight. BHP Billiton, Rio Tinto traded lower by about 1%, while shares of Fortescue were down by over 3%..In South Asia, Moody's raised India's outlook to Positive from Stable, and reaffirmed Baa3 sovereign rating. Moody's cited increasing probability that India's policies will enhance economic and financial strength over the coming years. Just a brief reminder, Moody's move came after S&P raised India's Outlook to Stable from Negative, and affirmed BBB- rating.

Nikkei +0.76% Hang Seng +3.10% Shanghai -1.52%

WTI $50.98 (+1.10%) RUB $53.4490 EURCHF 1.0403 CHF 0.9689 EUR$ 1.0754

S&P -0.10% EuroStoxx +0.38% Dax +0.31% SMI +0.21%

Macro :
- Signs of Recovery Spreading Across EU, Italy FinMin Padoan Says
- China March Retail Auto Sales Rise 11.6% on Year, PCA Says
- Mining Sector : Mining Outlook Negative on Weak Currencies, Oil, China: Investec


Keep an eye on :
- ABG/P SM : ABB 2.65% of co, 20mil shares - Citi & HSBC
- CGG FP : CGG Says 1Q Vessel Utilization Rate 84% vs 94% Y/y
- FAGR BB : Fagron Organic Rev. Growth Accelerates to 10.2% in 1Q
- HOLN VX : Holcim, Lafarge to Appoint Olsen to Lead Merged Company
- NOVN VX : Perrigo May See Other Bidders After Mylan Proposal: Stifel (Novartis mentionned)
- PHIA NA : *PHILIPS' LUMILEDS SALE IS CREDIT POSITIVE, MOODY'S SAYS
- SAZ GY : Stada May See Interest Due to Renewed M&A in Sector: JPMorgan
- VASTN NA : Vastned Retail Belgium to Invest EU2 Mln in Ghent Project

>>> Brokers Upgrades & Downgrades - 9th of April 2015

>>> Up
*KAZ MINERALS RAISED TO REDUCE VS SELL AT NUMIS
*PATRIZIA RAISED TO BUY FROM HOLD AT BANKHAUS LAMPE
*WOLF MINERALS RAISED TO BUY VS ADD AT NUMIS

>>> Down
*ANGLO AMERICAN CUT TO HOLD VS BUY AT INVESTEC
*ANGLO AMERICAN CUT TO NEUTRAL VS OUTPERFORM AT CREDIT SUISSE
*BHP BILLITON CUT TO UNDERPERFORM AT CREDIT SUISSE
*BHP BILLITON CUT TO SELL VS HOLD AT INVESTEC
*FIRST QUANTUM MINERALS CUT TO ADD VS BUY AT NUMIS
*INVESTOR AB CUT TO NEUTRAL VS BUY AT CITI
*LLOYDS BANKING CUT TO HOLD VS BUY AT INVESTEC
*SEB SA CUT TO NEUTRAL VS BUY AT UBS


>>> PT change


>>> Initiation
*DASSAULT SYSTEMES RATED NEW SELL AT BERENBERG, PT EU49
*IMCD RATED NEW BUY AT ING, PT EU36.50

>>> Call

>>> Asian Update

Asian Mid-session Update: Bank of Korea left benchmark interest rate unchanged; Moody's raised India's sovereign outlook


***Economic Data***
- (AU) AUSTRALIA MAR AIG PERFORMANCE OF CONSTRUCTION INDEX: 50.1 V 43.9 PRIOR (1st expansion in 5 months)
- (IN) Moody's raises India outlook to positive from stable; reaffirms Baa3 sovereign rating
- (KR) BANK OF KOREA (BOK) LEAVES 7-DAY REPO RATE AT 1.75% (AS EXPECTED)
- (JP) Japan Mar Tokyo Average Office Vacancies: 5.3% v 5.3% prior

***Index Snapshot (as of 02:30 GMT)***
- Nikkei225 +0.6%, S&P/ASX -0.4%, Kospi flat, Shanghai Composite -1.2%, Hang Seng +3.6%, Jun S&P500 flat at 2,075

***Commodities/Fixed Income***
- Jun gold -0.5% at $1,198/oz, May crude oil +1.3% at $51.09/brl, May copper -0.1% at $2.73/lb
- (JP) Japan investors sold net ¥3.0T in foreign bonds v bought ¥1.0T in prior week; Foreign investors bought net ¥1.0T in Japan stocks v sold ¥34.4B in prior week
- (AU) Australia sells A$500M in notes due Aug 7th; Avg yield: 1.9947%; Bid-to-cover: 3.24x
- (CN) PBoC to inject CNY15B in 7-day reverse repos (13th consecutive injection); Drains net CNY15B this week v injected CNY5B prior (1st drain after 2 weeks of injection)
- JGB: (JP) Japan MoF sells ¥B in 1.5% (1.5% prior) 30-yr bonds; Avg yield: 1.3750% v 1.510% prior; Bid to cover: 2.86x v 3.67x prior

***Market Focal Points/FX***
- Asia experienced a volatile session today. Shanghai Composite opened above 4,000 level for the first time in 7 years, but then traded sharply lower, finished morning session down by 1.2%. Hong Kong Hang Seng Index continued its fascinating momentum in early session, as the index once traded higher by as much as 8%, and then pared gains to around 27,200 level. US Dollar was generally stronger today in Asia session, following the latest Fed minutes. Reaction was perceived somewhat hawkish after the statement, as several members expressed support for rate liftoff in June. EUR/USD traded around 1.0780 level, after briefly dipping below 1.0760. USD/JPY remained relatively strong during Asia session, held around 120.30 level.

- China Premier Li confirmed that China will cut iron-ore resources tax to help the real economy. Resources stocks in Australia are being hit hard early on fears that Chinese authorities will keep uneconomic iron ore miners afloat, while energy names have fallen sharply in line with the reversal in the oil price overnight. BHP Billiton, Rio Tinto traded lower by about 1%, while shares of Fortescue were down by over 3%.

- As expected, the Bank of Korea maintained interest rates at its decision. However, one dissenter at the Korea central bank proposed a rate cut. Bank of Korea also cut 2015 GDP growth forecast to 3.1% from previously forecasted 3.4%, and cut 2015 inflation forecast to 0.9% from 1.9%. Korean equity and fx markets remained little changed after the rate decision.

- In South Asia, Moody's raised India's outlook to Positive from Stable, and reaffirmed Baa3 sovereign rating. Moody's cited increasing probability that India's policies will enhance economic and financial strength over the coming years. Just a brief reminder, Moody's move came after S&P raised India's Outlook to Stable from Negative, and affirmed BBB- rating.

***Equities***
US equities / ADRs:
- S: Delivers Expanded Connectivity with Free Wi-Fi Calling to Millions of iPhone Customers; +0.8% afterhours
- APA: Agrees to sell Australia operations for $2.1B to a consortium of private equity funds managed by Macquarie Capital Group Limited and Brookfield Asset Management Inc.; +0.3% afterhours
- BIIB: Patient taking Tecfidera for psoriasis developed PML, despite not having severe Lymphocytopenia; the patient died last August - NEJM; -0.4% afterhours
- BBBY: Reports Q4 $1.80 v $1.81e, R$3.34B v $3.37Be; -3.2% afterhours
- AA: Reports Q1 $0.28 v $0.26e, R$5.82B v $5.85Be; -3.2% afterhours

- COST: Reports March US SSS ex gas +4%

Notable movers by sector:
- Consumer Discretionary: SAIC Corp 600104.CN -2.7% (Mar sales results); FamilyMart 8028.JP +5.2% (FY14/15 results)
- Financials: Western Securities 002673.CN +8.1% (Mar op results); Guosen Securities 002736.CN +7.7% (Mar op results); Hong Kong Exchanges & Clearing 388.HK +7.7% (Chairman comments on stock connect quota); Fantasia Holdings Group 1777.HK +12.2% (Mar sales results); Shui On Land 272.HK +3.5% (Mar sales results); Evergrande Real Estate 3333.HK +2.0% (Mar sales results); GF Securities 000776.CN +3.2% (Mar Op results)
- Materials: BC Iron BCI.AU +7.3% (Mar quarter shipments); BHP Billiton BHP.AU -1.3%, Rio Tinto RIO.AU -0.8%, Fortescue FMG.AU -3.5% (China to cut iron-ore resource tax)
- Energy: China Longyuan Power Group 916.HK +8.8% (Mar sales results)
- Industrials: Geely Automobile Holdings 175.HK +2.4% (Mar sales results)
- Technology: GungHo Online Entertainment 3765.JP -5.0% (press speculation on Q1 results)