>>> Aer Lingus unions split on support for IAG bid

Aer Lingus unions split on support for IAG bid

Unions aligned with Aer Lingus’ [LON:AERA] workforce are divided on the best way to guarantee their members’ jobs are retained should a proposed takeover bid from IAG [LON:IAG] materialise.

The Services Industrial Professional and Technical Union (Siptu), which represents 1,500 Aer Lingus workers, has not ruled out supporting the sale as long as guarantees on job retention and aviation connectivity are given by IAG.

While Siptu has left the door open, Impact Union, which represents around 1,200 cabin crew, 500 pilots, and 100 ground staff, said it will not support any sale because it doubts IAG will give the kind of credible “cast iron guarantees” for which Siptu and the Irish government are asking.

IAG proposed on Monday three “legally binding commitments” designed to address concerns over the use of Aer Lingus’ 23 Heathrow slots, which many fear would no longer be used to service the Irish market under IAG’s ownership. The IAG statement did not mention job retention, though.

IAG has been discussing its proposal to buy Aer Lingus for EUR 1.36bn with the Irish Government since the airline’s board signalled it was willing to recommend such a deal.

Irish Transport Minister Paschal Donohoe said the government will take into consideration, among other matters, the effects on transport links to Europe and the US, and jobs associated with those transport links, before a decision is made.

Impact said it remained fully opposed to any sale of the airline because IAG’s guarantees on the slots were “unconvincing”. In an emailed statement to this news service, Impact said a commitment not to sell the slots was no guarantee that the use of the slots would not change.

“The decision by Aer Lingus some years ago to remove Heathrow slots from their connection to Shannon was very damaging. IAG would be able to change the use of these slots as they pleased, including a transfer of use to another airline, without having to sell them. Similarly, a commitment to maintain the slots on Irish routes for five years means we have no guarantees on connectivity to Heathrow beyond that time limit,” according to the statement.

Any concessions given by IAG after the government sold its stake would not be enforceable and corporations are inherently unable to give certainty on their future direction, said an Impact spokesperson.

Siptu organiser Owen Reidy told this news service that Impact’s estimates of 1,200 job losses were speculative, and Impact’s conclusion that no deals could be struck with IAG was “too dismissive”. “Everyone is saying no to the deal but what happens if the government say a firm ‘no’ and then the share price collapses? What happens then?” Reidy questioned.

There is some concern that a rival bidder with less fear for the Irish economy and labour force than IAG could swoop on Aer Lingus if the present proposal fails and the share price slumps, it is understood.

Minister Donohoe has promised to consult with Siptu, Impact, and the Irish Congress of Trade Unions before making a decision on whether to sell, Reidy said.

Reidy also said he believed Siptu would have a key role to play in negotiating directly with IAG should the government green-light a sale.

Impact’s spokesperson said it had not engaged in any direct discussions with Aer Lingus nor IAG over its concerns so far. However, he did not rule out engaging in consultations or negotiations with the parties over potential concessions, although he said he thought any comments at this stage would be too speculative given the terms of any proposed offer were not yet known.

(BFW) *FORTUM SWEDISH BUSINESS SAID TO ATTRACT BIDS OF $5-$7 BLN

BN 02/02 18:57 *FORTUM SWEDISH BUSINESS SAID TO ATTRACT BIDS OF $5-$7 BLN
BFW 02/02 18:57 *MACQUARIE SAID TO EXIT FORTUM’S SWEDISH SALE AS BIDS PUSH PRICE
BN 02/02 18:57 *FORTUM SWEDISH GRID FINAL BIDS SAID TO BE DUE EARLY MARCH
BN 02/02 18:57 *CKI, BOREALIS, GOLDMAN-3I SAID AMONG BIDDERS FOR FORTUM ASSET
*FORTUM SWEDISH BUSINESS SAID TO ATTRACT BIDS OF $5-$7 BLN
2015-02-02 18:58:13.786 GMT

--VIVEK SHANKAR

-0- Feb/02/2015 18:58 GMT

(MS) European Strategy : European stocks for the Global Investor

We think 2015 could be the first year since 2006 in which European equities outperform global equitymmarkets, as performance is boosted by the followingmdrivers:

* Euro-area economic momentum is likely to rebound on the back of the sharp easing of financial conditions due to the fall in the euro, bond yields and the oil price;
* The ECB’s QE program should boost EPS growth by weakening the currency and lowering European corporates’ interest expenses. Partly as a consequence of these factors, we expect European EPS growth this year to be stronger than that in the US for the first time since 2008;
* There is still a significant risk premium priced into European equities: the price to book relative to global markets remains close to a 20-year low and the equity risk premium relative to that in the US is about 100bps higher than suggested by fundamentals;
* Investors are still bearishly positioned on Europe, but fund flows are starting to improve.

We highlight European companies that our analysts believe offer a strong franchise and attractive valuations relative to global peers. Of these, BMW, IAG, RyanAir, Deutsche Post, Eurotunnel, Publicis, Philips, IHG, AXA, Prudential and UBS are OW-rated by our analysts and are in sectors where we are overweight.

>>> US Gapping down

Gapping down
In reaction to disappointing earnings/guidance: NKA -8.1%, FCN -4.1%, EVEP -3.7%, RYAAY -1.0%

Select metals/mining stocks trading lower: GFI -1.7%, GDX -1.6%, ABX -1.4%, AU -1.2%, NEM -0.7%

Other news: RSH -22.2% (RadioShack and hedge fund investors are considering plans to bankruptcy auction, according to reports), PSTI -11.3% (announces significant new finding from its Phase I/II muscle injury trial; stock had been trading higher all last week), NKA -8.1% (announces suspension of common unit distribution ), CMRX -4% (Brincidofovir will not be considered in further clinical trials in ebola virus disease), EVEP -3.7% (announces reduction of quarterly distribution to $0.50 per unit, prior was $0.77), HART -1.8% (disclosed that it recently determined that it will need additional development and testing within its ongoing preclinical large-animal model testing of the HART-Trachea)

Analyst comments: ANF -2.2% (downgraded to Sell from Hold at Evercore ISI), GOLD -1.4% (downgraded to Neutral from Buy at UBS), GES -1.1% (downgraded to Sell from Hold at Evercore ISI), DFT -1% (downgraded to Neutral at Macquarie), ARR -0.9% (downgraded to Underperform at Credit Suisse), CYS -0.7% (downgraded to Underperform at Credit Suisse)

>>> US Gapping up

Gapping up
In reaction to strong earnings/guidance: HIHO +15.9%, FLWS +7.7%, LII +2.8%, SYY +1.9%, NMM +1.4%, XOM +0.5%

M&A news: CRH +4.8% (Holcim (HCLMY) and Lafarge (LFRGY) announce a project to sell assets to CRH for an enterprise value of EUR 6.5 bln in the context of their planned merger)

Select oil/gas related names showing strength: SDRL +4.1%, STO +3.7%, TOT +2.7%, LINE +2.5%, SSL +2.4%, OAS +1.5%, OXY +1.5%, RDS.A +1.1%, HAL +1%, RIG +0.9%

Other news: MCP +20.9% (reported that rare earth production in the fourth quarter of 2014 at its Mountain Pass, California facility increased y/y and nearly doubled that of the preceding quarter), CAMT +12.1% (selected by a leading semiconductor manufacturer as the supplier of choice to provide systems for defect detection and metrology of advanced packaging applications), FRO+10.4% (provides capital update), ZGNX +9.6% (receives FDA approval of new formulation of Zohydro ER), NBG +9.1% (Greece PM speech over wkend implying cooperation with EU), BLUE +8.1% (FDA grants "Breakthrough Therapy Designation" to LentiGlobin for treatment of beta-thalassemia major), GST +6.8% (announces 87% increase in proved reserves), KMDA +5.5% (reports additional data from its open-label Phase 1/2 trial of IV Alpha1-Proteinase Inhibitor--Human), SANW +5.1% (files for ~13.3 mln share common stock offering by selling shareholders), EXXI +4.4% (still checking), AMD +4.3% (positive Barron's mention), BGMD +3.8% (receipt of favorable NASDAQ Listing Determination; exchange granted its request for continued listing), CTSO +3.5% (FDA approval to commence initial U.S. cardiac surgery study), SN +2.6% (Q4 daily avg. production at high end of guidance), MYL +2.1% (Theravance Biopharma and Mylan partner to develop and commercialize a novel LAMA compound), ALLT +1.9% (launches cloud access optimization solution with Microsoft (MSFT) Office 365 Support ), RDUS +1.7% (initiated with a Buy at BofA/Merrill),GPRO +1.0% (Chairman/CEO Nicholas Woodman discloses 44.9% stake in the company), CNI +0.8% (announces plan to buy back 1.2 mln shares through a private agreement), SHPG +0.8% (Vyvanse capsules becomes first and only treatment approved by the FDA for adults with moderate to severe binge eating disorder)

Analyst comments: DEG +2.5% (upgraded to Buy at Jefferies), DECK +2.2% (upgraded to Buy at Goldman), M +1.7% (initiated with a Buy at Evercore ISI), FUN +1.3% (upgraded to Buy at Goldman), CAM +0.5% (upgraded to Overweight at Barclays)

(BFW) Finmeccanica Ready to Take Control of Avio Space: Sole Website

BFW 02/02 12:44 *FINMECCANICA READY TO TAKE CONTROL OF AVIO SPACE: SOLE WEBSITE
BN 02/02 12:44 *FINMECCANICA READY TO TAKE CONTROL OF AVIO SPACE: SOLE WEBSITE
Finmeccanica Ready to Take Control of Avio Space: Sole Website
2015-02-02 13:02:08.588 GMT


By Chiara Vasarri
(Bloomberg) -- Finmeccanica may address Avio Space after
dealing with transport business sale, Il Sole 24 Ore reports on
website, citing unidentified officials familiar with matter.
* After gaining control of Avio Space, Finmeccanica may sell
minority stake to French group yet to be identified: Sole
* Renzi govt in favor of purchase: Sole
* NOTE: Cinven currently owns 81% of co., while Finmeccanica
has 14% stake
* NOTE from July 2, Italy Pushing Finmeccanica on Avio Space
Control: Defense Min
* NOTE from Jan. 27, Finmeccanica Raises 2014 Targets; Sees
Profit Up 20% Through ’16


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

To contact the reporter on this story:
Chiara Vasarri in Rome at +39-06-4520-6325 or
cvasarri@bloomberg.net
To contact the editors responsible for this story:
Jerrold Colten at +39-02-8064-4261 or
jcolten@bloomberg.net

>>> US Early premarket gappers

Early premarket gappers

Gapping up: MCP +15.2%, ZGNX +7.4%, FRO +7.4%, NBG +7.3%, CRH +5.8%, EXXI +5.4%, SN +5.2%, SDRL +4.7%, STO +4.5%, AMD +3.1%, LINE +2.5%, DECK +2.4%, SSL +2.3%, OAS +2.3%, PBR +2.2%, APA +2.2%, RDS.A +2.1%, OXY +2.1%, SLB +2%, ALLT +1.9%, HAL +1.8%, COP +1.8%, SAP +1.6%, CVX +1.6%, RIG +1.5%, APC +1.3%, SHPG +1.1%, BHP+1%

Gapping down: PSTI -12.1%, GENE -3.2%, TEF -2.7%, ANF -2.2%, GFI -1.7%, CCL -1.3%, DEO -1.3%, GWPH -1.3%, GDX -1.3%, DEO -1.3%, AU -1.3%, GOLD -1.1%, RYAAY -1%, NVS -1%, ABX -0.7%, NEM -0.7%