(BofA-ML) Vodafone : Upgrade from Underperform to Neutral : Realising Value

* Valuation supports a more neutral stance
We raise PO to reflect AMAP peer group multiples as a more accurate measure of
value, with VOD reported to be assessing a potential IPO of Indian operations. This
derives a PO of 252p, alongside which a relative valuation in-line with peers justifies
a more Neutral stance, thus we upgrade. Downside risks include a slower than
expected recovery following a disappointing FY print (a driver of our previous
Underweight thesis that has seen consensus expectations fall), and our mid-term
thesis on increased capex needs that could mean consensus expectations of
dividend growth are disappointed. However, balancing this is upside risk potential
from a possible asset swap with Liberty Global - now confirmed in negotiations - that
could realise synergies from a shift to convergent infrastructure.

* Fundamentals still a work-in-progress
FY results confirmed a fragile recovery; with market underperformance in Germany,
and expectations of a slower recovery across the group until H2. Not all was
disappointing; Italy and Africa improved and KPIs were encouraging from the
perspective of data growth and project spring-funded network performance. Midterm,
without M&A, we think capex guidance is unsustainable and that consensus
expectations of dividend growth could be disappointed

* M&A could derive upside
VOD has confirmed it has entered into discussions with Liberty Global about a
possible exchange of assets but not a combination of the two groups. This follows
comments from Liberty Global Chairman John Malone in an interview with
Bloomberg where he described the Western European assets of VOD as a ‘great fit’
with Liberty’s footprint. In a separate note today we explore the possibilities of an
asset swap and wider acquisition/merger scenarios and confirm that we believe
synergies could be material.

(BarCap) Luxury Goods : Pricing shows narrowing differentials

Pricing shows narrowing differentials

Updating our price comparison from March shows that the price gap between Europe and Asia has narrowed back towards normalised levels. Our data (albeit a small sample) shows Hong Kong is now at a 13% premium (historically c15%) and China +37% (historically 30-40%). This appears to have been completed efficiently through some price adjustments for some brands and helped by FX although it is too early to examine the impact on volumes and the redirection of the demand. While this is selective data it shows that the hard luxury companies have fully moderated prices while soft luxury companies have some way to go. While we wait for the volume impact, we remain more positive on the hard luxury companies, with Richemont the preferred name in the sector. In soft luxury LVMH is our preferred choice given it remains the price leader and has handled its LV rejuvenation exceptionally well. With H1 margins the other main issue due to continued softness in organic growth and FX hedging, we remain relatively cautious on the sector. Following the departure of the coverage analyst, with this report we transfer primary coverage of Richemont, Kering, Swatch, Tod’s and Mulberry to Julian Easthope.

Soft luxury companies still some way to go: Our analysis shows that the industry has narrowed the pricing gap in Hong Kong from 30% to 19% and China from 59% to 44% between March and June with the US at a 19% premium. We believe most companies are waiting for price leader Louis Vuitton to make adjustments before following suit Although there are margin implications of doing this before the FX hedges ease in Q4.

Hard Luxury companies have adjusted: By contrast, the hard luxury companies now average a 10% price discount in Hong Kong, 13% premium in China, with the US at a 5% discount. Even taking VAT refunds into account, there is still relatively limited opportunity for parallel imports.

Sector expensive in nominal terms but reasonable relative to the market: looking at the pure luxury companies, the weighted average PE of 18.7x is at the top end of the 13x-19x PE range although this amounts to just a 25% market premium – towards the bottom of the 5% to 53% range. We believe that H1 will be a tough period on margin with the full impact of FX hedging likely to be felt in this period but these pressures should ease in H2 and become a tailwind in 2016.

Richemont the preferred investment: With hard luxury pricing having been addressed and with the margin implications highlighted by the company at the FY 15 results, Richemont is our favored stock. It benefits from its strong position in jewellery, which is performing well, significant cash pile together with Yoox/Net-A-Porter JV that we believe is worth 4 points on the multiple on 18.7x (c14.7x ex cash and NAP).

LVMH – also good value: In the soft luxury area, we prefer LVMH given its price leadership that stands on 18.1x – in line with the sector.

>>> What to look at today - 8th of June 2015

Dow-0.31% S&P-0.14% Nasdaq+0.18% Russell+0.78%
US Close slightly lower, locking its second consecutive weekly decline. Starting in Europe, Greece did not make today's debt payment to the International Monetary Fund, opting instead to bundle all June payments into a single installment of EUR1.60 billion, to be paid on June 19. This will allow discussions to continue, but the developments weighed on investor sentiment in Europe. After European markets closed, Greek Prime Minister Alexis Tsipras addressed the Greek parliament, saying the proposals received from the lenders are unrealistic and that debt restructuring must be included in any potential agreement. Fed has stated multiple times that the first fed funds rate hike will be contingent on data trends that show the inflation rate gradually moving toward its 2.0% target. The 0.3% increase in hourly wages and the 0.5% increase in aggregate earnings place the economy on that path. financials (+0.6%)—spent the day in positive territory with banks expected to benefit from rising rates at the longer end of the curve. For the week, the financial sector gained 0.8%. Volume were in line @ 766mil shares... Asia indices turned mixed in the early session with absence of Australia. Shanghai Composite rewrote its 7-yr high level despite that CSRC decided to revise margin trade and short selling rules last Friday. China reports its May trade balance data with exports was better than consensus but imports tumbled more than expected for the 7th consecutive decline. Japan Q1 final GDP expanded annualized 3.9%, much better than preliminary data of 2.4% rise. On a quarter-to-quarter basis, GDP grew 1.0%, higher than 0.6% preliminary reading. EU's Juncker said to have rejected phone talk request from Greece Prime Minister Tsipras as he failed to deliver alternative proposal. Some other comment from France Finance Minister Sapin saying there could be no agreement with Greece after the end of June. A new round of talks is underway Hollande, Merkel, and Tsipras.

Nikkei Flat Hang Seng +0.39% Shanghai +1.34%

Eur$+1.1113 GBP 1.5274 EURCHF 1.0454 JPY 125.53 RUB$56.08 WTI $58.68 (-0.78%)

S&P-0.06% EuroStoxx-0.03% Dax -0.16% SMI -0.04%

Macro :
- China’s May Exports Fall 2.8% Y/Y in Yuan; Est. 4% fall
- Japan Revised 1Q Annualized GDP Rises 3.9%; Est. +2.8%
- Greece Euro Exit Would Be ‘Worst Catastrophe’ for Greeks: Sapin
- Nouy Says ECB to Stress Test Banks in 2016: Welt am Sonntag
- ECB’s Nouy Says Greek Banks Are Solvent: Welt am Sonntag
- Greece to Seek Piraeus Port Binding Bids in Sept.: Kathimerini
- Russian Economy Minister Says GDP to Fall 2.5-2.8% in 2015: RIA

Keep an eye on :
- AC FP : Accorhotels Has Had Hard Time in 2015: CEO Tells France Inter
- ADS GY : Shareholders Say Adidas Should Weigh Ending FIFA Contract: Welt
- AERL LN : Etihad to Work W/ Air France, Selling Aer Lingus Stake: Reuters
- AIR FP : Airbus May End GKN Contract as A320 Parts Supplier: Sunday Times
- AIR FP : Air France-KLM May Passenger Traffic Rises 1.9%
- AIR FP : To develop reusable space rocket launcher that should be ready in 2025
- AREVA FP : Areva Will Need Recapitalization, French Finance Minister Says
- ATLN VX : Actelion Declines to Comment on Shire Approach Report http://reut.rs/1Qg3oDA
- AZM IM : Azimut CEO Says No Buyers in Sight for Co.: Milano Finanza
- BAS GY : BASF bid for Syngenta could require leverage jump to avoid dilution
- BT/ LN : BT Seen as Takeover Target for Deutsche Telekom: Telegraph
- CRG IM : Carige to Decide on Ponti, Creditis Sale End June: Repubblica
- CA FP : Carrefour CEO Says Diniz Hasn’t Asked For Board Seat: JDD
- DGE LN : Brazil Billionaire Lemann Said to Consider Buying Diageo: Veja -->DEO US +7.96%
- DGE LN : Diageo Bid ‘Highly Unlikely’ N-T; Buy TAP on Pullback: Evercore
- DBK GY : Deutsche Bank’s Jain, Fitschen Said to Forgo Remaining Pay
- FCA IM : Fiat CEO: Ferrari IPO Can’t Be Done Before Oct. 12
- FCA IM : Fiat’s Marchionne Sees Auto Industry Investors Interested in M&A
- GEA GY : GEA CFO Sees Two to Three Acquisitions in 2015: Boersen Zeitung
- GKN LN : Airbus May End GKN Contract as A320 Parts Supplier: Sunday Times
- JPM US : JPMorgan Planning $9b Bid for Worldpay, Sunday Times Says
- NOVN VX : Novartis’s Jimenez Says New Drug Pricing Models Needed: FT
- SGO FP : Apollo Said to Make Preferred Bid for Saint-Gobain’s Verallia, Apollo Said to Win Saint-Gobain’s Verallia With $3.27b Bid: Rtrs
- SHP LN : Shire Approached Actelion in Recent Weeks: Sunday Times http://reut.rs/1Qg3oDA
- SIE GY : Siemens, J-Power Systems to Build EU500m Power Interconnector
- SYNN GY : Syngenta Rejects Monsato’s Offer Including $2b Break-up Fee
- UHR VX : Swatch CEO Says SNB Has Wrong Leadership Team at Work: NZZ
- TATE LN : Tate & Lyle Wants EU Exit Unless Sugar Rules Changed: Telegraph
- TEC FP : Technip, Petrovietnam Fertilizer Sign Deal to Build $237m Plant
- TEVA IT : Teva Held 2.15% in Mylan as of June 4, According to RNS Filing
- TIT IM : Tel. Italia Should Play Role in Broadband Plan: Official to Sole
- WLT US : Could enter bankruptcy within the month - financial press
- VOW3 GY : VW’s Piech Successor Choice Needs Time, State Minister Says: FAZ
- WPP LN : Standard Life to Protest Over WPP Boss Sorrell’s Pay: Times

>>> Europe : Brokers upgrades & Downgrades 8th of June 2015

>>> Up
*CASINO RAISED TO EQUALWEIGHT VS UNDEREWIGHT AT BARCLAYS
*DIAGEO RAISED TO NEUTRAL VS UNDERWEIGHT AT JPMORGAN
*KAZ MINERALS RAISED TO OUTPERFORM VS NEUTRAL AT CREDIT SUISSE
*KONE RAISED TO EQUALWEIGHT VS UNDERWEIGHT AT BARCLAYS
*SAS RAISED TO BUY VS NEUTRAL AT CITI
*SKANSKA RAISED TO HOLD VS SELL AT BERENBERG

>>> Down
*BELLWAY CUT TO NEUTRAL VS BUY AT CITI
*HARGREAVES LANSDOWN CUT TO UNDERPERFORM VS SECTOR PERFORM: RBC

>>> PT Change


>>> Initiation
*BREEDON AGGREGATES RATD NEW BUY AT CANTOR FITZGERALD, PT 55P
*EASYJET REINITIATED BUY AT INVESTEC, PT 1,900P

>>> Call
>> Stock
*MEDIASET ESPANA, STOCK SPIRITS ADDED TO JPMORGAN SMID CAP RADAR

>>> Asian Update

Asian Mid-session Update: China May imports worsens, Japan revised Q1 GDP tops estimates


***Economic Data***
- (JP) JAPAN Q1 FINAL GDP Q/Q: 1.0% V 0.7%E; ANNUALIZED GDP: 3.9% V 2.8%E
- (JP) JAPAN APR BOP CURRENT ACCOUNT BALANCE: ¥1.3T V ¥1.7TE; BOP ADJUSTED CURRENT ACCOUNT ¥1.3T V ¥1.4TE; TRADE BALANCE BOP BASIS: -¥146B V ¥153BE
- (JP) JAPAN MAY BANK LENDING (INCL TRUSTS): 2.6% V 2.6% PRIOR; BANK LENDING (EX- TRUSTS): 2.6% v 2.6%E
- (CN) CHINA MAY TRADE BALANCE: $59.5B V $44.8Be
- (JP) Japan May Bankruptcies Y/Y: -13.2% v -18.2% prior

***Index Snapshot (as of 02:30 GMT)***
- Nikkei225 -0.2%, S&P/ASX closed, Kospi -0.2%, Shanghai Composite +0.2%, Hang Seng -0.1%, Jun S&P500 -0.2% at 2,088

***Commodities/Fixed Income***
- Aug gold +0.6% at $1,174/oz, Jul crude oil -1.0% at $58.54/brl, Jul copper +0.1% at $2.70/lb
- SLV: iShares Silver Trust ETF daily holdings rise to 9,940 from 9,896; highest since May 14th
- GLD: SPDR Gold Trust ETF daily holdings fall 1.2 tonnes to 708.7 tonnes; lowest since Jan 14th
- USD/CNY: PBoC sets yuan mid point at 6.1205 v 6.1181 prior setting

***Market Focal Points/FX***
- Asia indices turned mixed in the early session with absence of Australia. Shanghai Composite rewrote its 7-yr high level despite that CSRC decided to revise margin trade and short selling rules last Friday. China reports its May trade balance data with exports was better than consensus but imports tumbled more than expected for the 7th consecutive decline. The drop in imports widened China's trade surplus in the month of May and exceeded market expectations.

- Japan Q1 final GDP expanded annualized 3.9%, much better than preliminary data of 2.4% rise. On a quarter-to-quarter basis, GDP grew 1.0%, higher than 0.6% preliminary reading. Meanwhile, Japan April current account balance came in slightly missing consensus. Nikkei erased earlier gain and slipped into negative territory as stronger Yen offsets the impact of revised GDP data, as of writing, USD/JPY was quoted at 125.28.

- EU's Juncker said to have rejected phone talk request from Greece Prime Minister Tsipras as he failed to deliver alternative proposal. Some other comment from France Finance Minister Sapin saying there could be no agreement with Greece after the end of June. A new round of talks is underway Hollande, Merkel, and Tsipras.

***Equities***
US equities / ADRs:
- GE: Said to be near agreement to sell private-equity lending unit to Canada's pension fund CPPIB for more than $10B in buyout loans - financial press
- JPM: Said to be planning a £6B bid for Worldpay - UK press
- DB: Co-CEOs Anshu Jain, Juergen Fitschen announce resignation

Notable movers by sector:
- Consumer discretionary: Chow Tai Fook Jewellery Group 1929.HK -4.7% (FY14/15 result); China Eastern Airlines 670.HK +7.2% (share placement, boosts capacity); China Southern Airlines Co 600029.CN +10.0% (China may cut fuel price)
- Financials: Sunac China Holdings 1918.HK -2.0% (May result); CITIC Securities 6030.HK +0.8% (to tighten margin trade rules); Bank of China Ltd 601988.CN +6.6% (speculation on mixed ownership reform), Bank of Communications 601328.CN +10.0% (mixed ownership reform, to sell CD in FTZ); Haitong International 6837.HK -2.4% (to issue bonds); CIFI Holdings Group 884.HK +1.0% (May result)
- Industrials: CRRC 601766.CN +10.0% (post merger of CNR and CSR); Hyundai Motor Co 005380.KR -2.9% (considers developing larger SUV)
- Technology: Toshiba Corporation 6502.JP +0.9% (found nothing from internal probe); NTT Data Corp 9613.JP +0.4% (speculation on acquisition)

(BFW) Syngenta Rejects Monsato’s Offer Including $2b Break-up Fee

CO5 06/08 05:01 Syngenta: June 8, 2015 - Syngenta comments on second letter from Monsanto 
BN 06/08 05:04 *SYNGENTA REITERATES REJECTION OF MONSANTO'S PROPOSAL
BN 06/08 05:03 *SYNGENTA SAYS MONSANTO REVERSE BREAK FEE `WHOLLY INADEQUATE'
BN 06/08 05:02 *SYNGENTA SAYS MONSANTO OFFER `ESSENTIALLY REPEATED' PROPOSAL
BN 06/08 05:01 *SYNGENTA: JUNE 8, '15 - SYNGENTA COMMENTS ON SECOND LETTER FROM
Syngenta Rejects Monsato’s Offer Including $2b Break-up Fee
2015-06-08 05:11:58.111 GMT


By Jurjen van de Pol
(Bloomberg) -- Syngenta says break-up fee proposed by
Monsanto is “wholly inadequate,” offer is “essentially
repeated” proposal, according to e-mailed statement.

* Says offer represents “same inadequate price, same
inadequate regulatory undertakings to close, same regulatory
risks and same issues associated with dual headquarters’
moves”
* Syngenta is confident to reach 2018 24%-26% Ebitda margin
target
* NOTE today: Monsanto Offers to Pay Syngenta $2b If Takeover
Fails Link


Link to Company News:{MON US <Equity> CN <GO>}
Link to Company News:{SYNN VX <Equity> CN <GO>}

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

To contact the reporter on this story:
Jurjen van de Pol in Frankfurt at +49-69-9204-1104 or
jvandepol@bloomberg.net

To contact the editor responsible for this story:
James Ludden at +44-20-3525-2645 or
jludden@bloomberg.net

(BN) Omega’s Cooperman Says There Is No Bubble in U.S. Stock Market


BFW 06/07 18:39 MORE: Omega’s Cooperman Likes Citigroup, Chimera Investment
Omega’s Cooperman Says There Is No Bubble in U.S. Stock Market
2015-06-07 18:29:09.178 GMT


By Michelle Kaske
(Bloomberg) -- The U.S. stock market isn’t overpriced and
may gain as much as eight percent annually over the next three
to five years even if there’s an economic setback, Omega
Advisors Inc.’s billionaire founder Leon Cooperman said Sunday.
“I think the market’s OK,” Cooperman, chairman and chief
executive officer of the New York-based hedge fund, which
manages $9.5 billion in assets, said on the television program
“Wall Street Week.” “It’s not cheap, but it’s not priced to
perfection. The bubble is not in the stock market. If there’s a
bubble, it’s in the bond market.”
The Standard & Poor’s 500 Index, which soared to a record
last month, has gained 1.65 percent this year.
The best U.S. jobs report in five months on Friday eased
concerns that the U.S. economy is struggling to regain momentum
after a contraction in the first quarter. At 5.5 percent, May’s
jobless rate is almost half the 10 percent rate in October 2009,
four months after the longest recession since the Great
Depression ended.
Cooperman, a former partner at Goldman Sachs Group Inc.,
sees potential value in Citigroup Inc. as commercial lending
picks up. He also favors Chimera Investment Corp., a New York-
based investor in residential mortgage loans, saying he wouldn’t
be surprised if the company raised its dividend next year.
Heading into the 2016 election cycle, Cooperman said he
wants Republican presidential candidates to focus on the U.S.
economy rather than on divisive social issues such as abortion
and homosexuality.
“I’m going to have trouble with any Republican that does
not disavow a fixation of social issues,” he said. “The young
people today in our country are not grabbed by those issues. So
we have to have somebody that’s fiscally conservative, oriented
towards fixing the problems in the economy.”
Income disparity and radical Islamic fundamentalism are two
of the major challenges facing the U.S. over the next decade,
Cooperman said.
“Wall Street Week” is produced by SkyBridge Media, an
affiliate of SkyBridge Capital, the fund-of-funds business
founded by Anthony Scaramucci. SkyBridge, which sometimes has
other business relationships with the shows participants,
advertisers and sponsors, pays Fox stations in key markets to
broadcast the show and also streams it online every Sunday at 11
a.m. in New York.

For Related News and Information:
Omega’s Cooperman Tells Hillary Clinton to Cut the ’Crap’
Cooperman’s Omega Hedge Fund Hires Former Baseball Player Wolff
Top Stories:TOP<GO>

To contact the reporter on this story:
Michelle Kaske in New York at +1-212-617-2626 or
mkaske@bloomberg.net
To contact the editors responsible for this story:
Peter Eichenbaum at +1-212-617-5722 or
peichenbaum@bloomberg.net
Lester Pimentel, Ros Krasny

(BFW) BT Seen as Takeover Target for Deutsche Telekom: Telegraph


BFW 06/07 20:49 *BT SEEN AS TAKEOVER TARGET FOR DEUTSCHE TELEKOM: TELEGRAPH
BT Seen as Takeover Target for Deutsche Telekom: Telegraph
2015-06-07 20:53:12.763 GMT


By Andrea Snyder
(Bloomberg) -- Telegraph cites sr. industry execs., London
City analysts.

* Merger of T-Mobile US, Dish seen as increasing likelihood of
takoever by Deutsche Telekom




Link to Company News:{TMUS US <Equity> CN <GO>}
Link to Company News:{BT/A LN <Equity> CN <GO>}
Link to Company News:{DTE GR <Equity> CN <GO>}

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

To contact the reporter on this story:
Andrea Snyder in Washington at +1-202-624-1831 or
asnyder5@bloomberg.net

To contact the editor responsible for this story:
Sylvia Wier at +1-212-617-8958 or
swier@bloomberg.net

(BUS) Seeking Constructive Engagement with Syngenta, Monsanto Reaffirms Highly Compelling Proposal and Underscores Confidence in


BFW 06/07 23:08 Monsanto Proposes New $2b Reverse Break-Up Fee to Syngenta
BFW 06/07 23:19 MORE: Monsanto Proposes New $2b Reverse Break-Up Fee to Syngenta
BN 06/07 23:13 *MONSANTO: SYNGENTA HAS NOT ENGAGED IN SUBSTANTIVE TALKS
BN 06/07 23:10 *MONSANTO ADDS $2B REVERSE BREAK-UP FEE TO SYNGENTA PROPOSAL
BN 06/07 23:06 *MONSANTO: FEE PAYABLE BY CO. IF UNABLE TO OBTAIN APPROVALS
BFW 06/07 23:06 *MONSANTO REPORTS NEW $2B REVERSE BREAK-UP FEE
BN 06/07 23:05 *MONSANTO REPORTS NEW $2B REVERSE BREAK-UP FEE
BN 06/07 23:05 *MONSANTO REAFFIRMS HIGHLY COMPELLING PROPOSAL & UNDERSCORES
BN 06/07 23:05 *SEEKING CONSTRUCTIVE ENGAGEMENT WITH SYNGENTA, MONSANTO
BN 06/07 23:05 *SEEKING CONSTRUCTIVE ENGAGEMENT W/ SYNGENTA, MONSANTO REAFFIRMS
Seeking Constructive Engagement with Syngenta, Monsanto Reaffirms Highly Compelling Proposal and Underscores Confidence in
2015-06-07 23:05:00.114 GMT

Seeking Constructive Engagement with Syngenta, Monsanto Reaffirms Highly
Compelling Proposal and Underscores Confidence in Obtaining Regulatory
Approvals with New $2 Billion Reverse Break-up Fee

Business Wire

ST. LOUIS -- June 7, 2015

Monsanto Company (NYSE: MON) today reaffirmed its commitment to a constructive
process to negotiate a mutually beneficial combination as part of the
company’s proposal to combine with Syngenta (VTX: SYNN) in a cash and stock
transaction valued at 449 CHF per share. Monsanto’s proposal would provide
Syngenta shareholders with a substantial premium of more than 43 percent over
the 314 CHF unaffected share price on April 30, 2015 and a more than 45
percent premium to Syngenta's 52 week volume weighted average share price, as
well as significant further value creation through ongoing ownership in the
combined company. Monsanto has proposed to Syngenta a new $2 billion reverse
break-up fee payable by Monsanto if it is unable to obtain necessary global
regulatory approvals.

“We’re encouraged by the reaction to our proposal from our respective
shareowners, customers and other stakeholders,” said Hugh Grant, Monsanto
Chairman and CEO. “It is disappointing that Syngenta has not engaged in
substantive discussions about the many benefits of this combination, including
the benefits for farmers around the world. We remain committed to unlocking
the opportunity of this combination and pursuing constructive conversation
with Syngenta’s management and board. Monsanto devoted significant time and
resources analyzing the potential combination with Syngenta, and we are
confident in our ability to obtain all necessary regulatory approvals. We’ve
backed our confidence by agreeing to divest overlapping businesses and offered
a $2 billion reverse break-up fee to further demonstrate our commitment to
this combination.”

Monsanto reiterated that the combined strengths of both companies will
accelerate innovation and increase choice for farmers around the world, unlock
enhanced scale and reach, and provide the opportunity to offer farmers
integrated solutions across a broader set of crops, geographies and production
practices.

“Combining Monsanto’s global seeds, traits and information technology
capabilities with Syngenta’s global position in crop protection chemicals will
create significant value for growers to ultimately meet the needs of broader
society,” Grant added.

Additional materials supporting the strategic rationale and benefits of the
proposed transaction are available on Monsanto’s website at
www.monsanto.com/investors.

About Monsanto Company

Monsanto is committed to bringing a broad range of solutions to help nourish
our growing world. We produce seeds for fruits, vegetables and key crops –
such as corn, soybeans, and cotton – that help farmers have better harvests
while using water and other important resources more efficiently. We work to
find sustainable solutions for soil health, help farmers use data to improve
farming practices and conserve natural resources, and provide crop protection
products to minimize damage from pests and disease. Through programs and
partnerships, we collaborate with farmers, researchers, nonprofit
organizations, universities and others to help tackle some of the world’s
biggest challenges. To learn more about Monsanto, our commitments and our more
than 20,000 dedicated employees, please visit: discover.monsanto.com and
monsanto.com. Follow our business on Twitter® at twitter.com/MonsantoCo, on
the company blog, Beyond the Rows® at monsantoblog.com or subscribe to our
News Release RSS Feed.

Cautionary Statements Regarding Forward-Looking Information:

Certain statements contained in this release are "forward-looking statements,"
such as statements concerning the anticipated financial results, current and
future product performance, regulatory approvals, business and financial plans
of the company and the potential combined business of the company and
Syngenta, including the expected benefits of a potential combination as well
as whether a potential combination will be entered into or completed, and
other non-historical facts. These statements are based on current expectations
and currently available information. However, since these statements are based
on factors that involve risks and uncertainties, the company`s actual
performance and results may differ materially from those described or implied
by such forward-looking statements. Factors that could cause or contribute to
such differences include, among others: continued competition in seeds, traits
and agricultural chemicals; the company`s exposure to various contingencies,
including those related to intellectual property protection, regulatory
compliance and the speed with which approvals are received, and public
acceptance of biotechnology products; the success of the company`s research
and development activities; the outcomes of major lawsuits and the
previously-announced SEC investigation; developments related to foreign
currencies and economies; successful operation of recent acquisitions;
fluctuations in commodity prices; compliance with regulations affecting the
company`s manufacturing; the accuracy of the company`s estimates related to
distribution inventory levels; the recent increases in and expected higher
levels of indebtedness; the company`s ability to fund its short-term financing
needs and to obtain payment for the products that it sells; the effect of
weather conditions, natural disasters and accidents on the agriculture
business or the company`s facilities; the possibility that a potential
transaction involving Syngenta will not be entered into or will be pursued on
different terms and conditions, failure to obtain necessary regulatory
approvals or to satisfy any of the other conditions to a possible transaction,
failure to realize the expected benefits thereof, or the impact of changes in
business, financial, market, legal or other conditions; and other risks and
factors detailed in the company`s most recent periodic report to the SEC.
Undue reliance should not be placed on these forward-looking statements, which
are current only as of the date of this release. The company disclaims any
current intention or obligation to update any forward-looking statements or
any of the factors that may affect actual results.

Other Information:

This document does not constitute, or form part of, any offer or invitation to
sell or issue, or any solicitation of any offer, to purchase or subscribe for
any ordinary shares in Syngenta AG, or Syngenta ADSs, nor shall it form the
basis of, or be relied on in connection with, any contract there for.

View source version on businesswire.com:
http://www.businesswire.com/news/home/20150607005058/en/

Contact:

Monsanto Company
Media:
Sara Miller, 314-694-5824
or
Analysts:
Laura Meyer, 314-694-8148

-0- Jun/07/2015 23:05 GMT

Barron's : U.S. Activist to Battle Samsung’s Founding Family



U.S. Activist to Battle Samsung’s Founding Family

Paul Singer’s Elliott Management vows to fight Lee family’s bid for more control.



Koreans have good reason to take issue with controlling families of the chaebols, or business conglomerates. The “nut rage” temper tantrum at a flight attendant that sent a Korean Air heiress to jail symbolized how Korea’s wealthiest families elevate themselves at the public’s expense. The latest example: a Samsung Group merger, which sparked volatile trading in the group’s stocks.

On May 26, Cheil Industries (ticker: 028260.Korea), the founding Lee family’s de facto holding company, and Samsung C&T (000830.Korea) announced an all-stock merger. Under the proposal, shareholders of Samsung C&T can trade 100 of their shares for 35 Cheil shares. The Samsung subsidiaries project growing pretax profit five-fold to four trillion won ($3.59 billion) in five years. But analysts are skeptical. How much synergy can Cheil, with interests from fashion to biotech, have with Samsung C&T’s natural-resources trading business?

In fact, the merger is all about the Lee family tightening its grip on the group’s crown jewel, Samsung Electronics (005930.Korea). Samsung Chairman Lee Kun-hee, 73, who suffered a heart attack a year ago, is passing power to his 46-year-old son, Lee Jae-yong. The younger Lee lacks his father’s prestige—and the family does not own many shares. The family currently directly owns only 4.7% of Samsung Electronics, and another 8.5% indirectly, mostly via its control of Samsung Life Insurance(032830.Korea). Over 70% of Samsung Electronics is free-float. The merger proposal would boost family control to 17.3% through Samsung C&T’s 4.1% stake in Samsung Electronics.

Cheil is getting Samsung C&T cheap. Prior to the merger, Cheil was trading at an all-time high of 3.5 times forward book, while Samsung C&T was valued at only 0.66 times, below its historical average of 0.8 times. Cheil did not offer Samsung C&T’s shareholders a merger premium.

Last Thursday, Samsung C&T shares jumped 10.3% after U.S. activist investor Paul Singer’s Elliott Management said it bought a 7.1% stake and was ready for a fight. Cheil may have to sweeten the deal: Over two-thirds of C&T’s shares are free-float; the Lee family has only a 13% stake; and the merger needs a two-thirds majority to pass. Investors have until June 11 to accumulate shares and Samsung C&T now trades at 0.91 times book.

SINCE THE DEAL WAS ANNOUNCED, Samsung Electronics has fallen 5.7% while IT services provider Samsung SDS (018260.Korea) has jumped 15.7%, on speculation that a merger between the two is another way to boost family control. Since SDS is just 10% of the size of Samsung Electronics, a merger would not require shareholder approval. But a deal would allow the Lees to almost double their direct stake in Samsung Electronics to 6.7%, though, again, it wouldn’t create much synergy. Trading reversed most of its course Wednesday after Samsung Electronics denied there would be a deal.

But the damage was done. Subtracting its cash, Samsung Electronics’ market cap is smaller than Taiwan Semiconductor Manufacturing (TSM), even though it generated twice as much income last year, notes Maybank’s Warren Lau. Samsung’s preferred shares, which do not have voting rights, now trade at just a 17% discount to its common, the narrowest spread of all time, versus their 25% average in the last couple of years. Clearly, investors don’t think the voting rights are worth much.