TheChek News Flow

After Hours Summary: OZRK +1.4%, RNDY +1.0%, BJRI -5.6%, TESS -3.0%, INTC -2.4%, SAVE -1.9% following earnings/guidance

After Hours Gainers: Companies trading higher in after hours in reaction to earnings: OZRK +1.4%, RNDY +1.0%, SLB +0.1%, PBCT +0.1%

Companies trading higher in after hours in reaction to news: PIP +9.6% (announced that the Delaware Court of Chancery has entered its Final Order and Judgment in the co's litigation against SIGA Technologies (SIGA); the Court's judgment against SIGA totaled ~$194.65 mln), EOPN +5.1% (WSJ reporting co is working with Bank of America to find a buyer following stock price declines), DEPO +4.3% (entered into an agreement to acquire the U.S. rights to the NUCYNTA franchise from Janssen Pharmaceuticals (JNJ subsidiary), Inc. for $1.05 bln), WLH +2.1% (entered into an agreement with Stearns Lending, LLC, to form William Lyon Mortgage, LLC, a limited liability company that will offer an array of mortgage banking services), HCT +1.8% (shareholders approve merger with Ventas (VTR)), RRC +1.6% (announced updated 2015 capital budget of $870 mln, down from $1.3 bln, targeting production growth of 20% YoY; co also reported proved reserves increased 26% to 10.3 tcfe), 

After Hours Losers:

Companies trading lower in after hours in reaction to earnings: BJRI -5.6%, TESS -3.0%, INTC -2.4%, SAVE -1.9%

Companies trading lower in after hours in reaction to news: FULL -1.7% (released an update of its investment portfolio activity for the second quarter of fiscal 2015 ended December 31, 2014; second quarter originations total $13.25 mln), RGC -1.6% (provided update on strategic review process; co has determined that a sale of the company would not be in the best interest of its shareholders), CZR -1.5% (Moody's lowered Caesars Entertainment PDR to D-PD on Chapter 11 filing)

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Tiffany’s Slumping Shares May Rekindle Takeover Talk: Real M&A 2015-01-16 05:00:01.1 GMT

(For a Real M&A column news alert: SALT REALMNA <GO>.)

By Tara Lachapelle (Bloomberg) -- Tiffany & Co.’s plunging shares are bringing a takeover of the $11 billion luxury-jewelry chain back into the realm of possibilities. The 17 percent drop this week has reduced Tiffany’s share price to about 20 times trailing 12-month earnings, the New York-based company’s cheapest valuation in about two years. In the past, it’s been labeled an acquisition candidate for industry consolidator LVMH Moet Hennessy Louis Vuitton SA, other luxury-goods makers and even private-equity firms -- price always being the one, big caveat. At about $86 a share Tiffany still isn’t dirt cheap and management is unlikely to want to sell, but if the stock were to stay down for a longer period of time that could change things, according to Morningstar Inc.’s Paul Swinand. “At $110, it wasn’t fathomable,” Swinand, a Chicago-based analyst, said in a phone interview. “It’s at least fathomable at this price.” Tiffany, known for its engagement rings and jewelry gifts, had a surprisingly sluggish holiday season in the U.S. It had been counting on the Americas to help offset weaker results overseas, particularly in Japan, and the negative impact of currency fluctuations.

Stock ‘Hiccup’

The stock plunged 14 percent Jan. 12, its biggest drop in more than a decade, and has continued to fall. That’s made Tiffany the fourth-worst performer in the Standard & Poor’s 500 Index so far this year. “The company and its stock are no strangers to hiccups, and that is all this is,” said Howard Ward, chief investment officer of growth equities for Rye, New York-based Gamco Investors Inc., which owns Tiffany shares among the $47 billion of assets it oversees. Even though buyout firms seem to be taking an interest in retailers again, another maker of luxury goods is a more likely suitor for Tiffany. Financial buyers tend to target poorly managed businesses that they can turn around, which isn’t the case with Tiffany, according to Ward. “I suspect Tiffany is worth more to some of the European luxury conglomerates than it is to private equity,” he said. The company has long been considered a potential target for Paris-based LVMH, which owns brands such as Bulgari jewelry, Dom Perignon champagne and Sephora make-up stores and is controlled by Bernard Arnault, France’s richest man. After relinquishing most of his holding in Hermes International last year, Arnault is expected to continue seeking acquisitions. “LVMH is marginally better positioned for a large takeover,” said Luca Solca, London-based head of luxury-goods research for Exane BNP Paribas. “Bulgari is now really starting to get traction and is not a problem anymore. And LVMH is no longer involved with Hermes.”

Still Pricey

A purchase of Tiffany at these levels would still be expensive, and it would require a typical takeover premium of about 30 percent, he said. That implies a bid of about $111 a share, valuing Tiffany at $15 billion including net debt. That would exceed the enterprise values of Burberry Group Plc, Coach Inc. and Ralph Lauren Corp. So, while Tiffany has gotten cheaper, an acquisition is still “not a slam dunk,” Solca said.

For Related News and Information: How Tiffany Lost Its Shine: Four Challenges Facing the Blue Box LVMH’s Arnault Seen Staying on M&A Path After Hermes Retreat Burberry to Tiffany Seen Attracting LVMH as Sales Slow: 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 Mohammed Hadi

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Portugal Telecom Says Rejecting Sale Would Hurt Co.’s Value 2015-01-15 22:33:35.111 GMT

By Jim Silver (Bloomberg) -- Failure by Portugal Telecom shareholders on Jan. 22 to approve sale of Oi’s Portuguese assets would contribute to “continued uncertainty” over those assets, PT says in statement. * That “would consequently have a negative impact” on Oi shareholders’ equity and, in turn, on Portugal Telecom as Oi shareholder * NOTE: Jan. 12, P. Telecom Shareholders Take 10 Days to Consider Altice Deal Link

Link to Company News:ATC NA <Equity> CN <GO> Link to Company News:OIBR4 BZ <Equity> CN <GO> Link to Company News:PTC PL <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: Jim Silver at +1-212-617-7342 or jsilver@bloomberg.net

Closing Market Summary: S&P 500 Logs Fifth Consecutive Decline

The major averages continued their rough week with the S&P 500 (-0.9%) registering its fifth consecutive decline after failing to hold the 100-day moving average (2007). The price-weighted Dow Jones Industrial Average (-0.6%) fared a bit better while the Nasdaq Composite (-1.5%) and Russell 2000 (-1.7%) underperformed.

This morning, market participants were greeted by an astounding move in the foreign exchange market. Specifically, the Swiss franc was up as much as 25.0% against the dollar after the Swiss National Bank abandoned the EURCHF 1.20 floor and lowered the benchmark deposit rate to -0.75%. The move was likely taken in anticipation of a QE announcement from the ECB, and the dollar/franc pair was able to narrow its loss to 15.0% (0.8687); however, that was still large enough to resonate with investors who were lulled into a false sense of security by the SNB's pledge to maintain the exchange rate floor.

Equity indices began the day with slim gains, but the morning strength faded alongside crude oil, which slid from a session high at $51.00/bbl to $46.57/bbl. The energy component ended the day lower by 4.1%, but that masked the fact that crude fell almost 9.0% from its best level of the day. Furthermore, that pullback was closely correlated with a broad-market slide, which was paced by cyclical sectors.

The two top-weighted groups—technology (-1.5%) and financials (-1.3%)—spent the day at the bottom of the leaderboard and their underperformance prevented the market from staging a notable rebound. Most large cap tech components held up relatively well, but Apple (AAPL 106.86, -2.94) fell 2.7% after Mizuho downgraded the stock to ‘Neutral' from ‘Buy.' Similarly, high-beta social media names lagged with the likes of Facebook (FB 74.05, -2.23), LinkedIn (LNKD 213.21, -6.22), and Yelp (YELP 50.12, -2.08) falling between 2.8% and 4.0%. Chipmakers also struggled, but the PHLX Semiconductor Index (-0.8%) ended ahead of the broader market thanks to an 8.7% surge in Taiwan Semiconductor (TSM 22.89, +1.83) after the company beat earnings estimates and issued upbeat guidance.

Elsewhere, the financial sector retreated under the weight of two more quarterly reports that missed their mark. Citigroup (C 47.23, -1.82) reported below-consensus earnings and revenue while Bank of America (BAC 15.20, -0.84) delivered a one-cent beat on light revenue. The two names posted respective losses of 3.7% and 5.2% while the sector extended its January decline to 6.1%.

Also of note, the consumer discretionary sector (-1.3%) finished among the laggards as retailers and homebuilders struggled. The SPDR S&P Retail ETF (XRT 92.12, -2.16) lost 2.3% while iShares Dow Jones US Home Construction ETF (ITB 24.60, -1.30) fell 5.0% despite better than expected earnings from Lennar (LEN 42.48, -3.28). The stock fell 7.2% after company management made cautious comments about its outlook, echoing the remarks made earlier this week by KB Home (KBH 12.39, -1.15).

On the upside, consumer staples (+0.2%) and utilities (+0.7%) posted gains while another countercyclical sector—health care (-1.1%)—was pressured by biotechnology. The iShares Nasdaq Biotechnology ETF (IBB 307.70, -7.87) lost 2.5%, which contributed to the underperformance of the Nasdaq.

Treasuries registered solid gains with the 10-yr yield sliding nine basis points to 1.76%.

Today's participation was ahead of average with more than 850 million shares changing hands at the NYSE floor.

Economic data included Initial Claims, PPI, Empire Manufacturing, and the Philadelphia Fed Survey:

* The initial claims level increased to 316,000 from an upwardly revised 297,000 (from 294,000) while the consensus expected a drop to 290,000 

* That was the largest initial claims level since the beginning of June 2014 when 318,000 claims were filed  * It is possible that the rise in claims is the beginning of an upward move in layoff levels from energy-related activities. Low oil prices are expected to cause layoffs as fracking becomes uneconomical 

* Producer prices declined 0.3% in December after declining 0.2% in November while the consensus expected a decline of 0.4% 

* Total energy prices fell 6.6% in December, which was the sixth consecutive month of price declines  * Excluding food and energy, core PPI increased 0.3% in December after being flat in November. The consensus expected an uptick of 0.1% 

* The Empire Manufacturing Survey for January registered a reading of 9.9, which was above the prior month's reading of -1.2 and also above the Briefing.com consensus estimate, which was pegged at 6.5  * The Philadelphia Fed's Manufacturing Business Outlook Survey dropped to 6.3 in January from a downwardly revised 24.3 (from 24.5) while the Briefing.com consensus expected a drop to 19.0 

* That was the lowest level since the index turned negative (-6.3) in February 2014 

Tomorrow, December CPI will be released at 8:30 ET ( consensus -0.4%) while Industrial Production (consensus -0.1%) and Capacity Utilization (expected 79.9%) will cross the wires at 9:15 ET. The Michigan Sentiment Index for January (consensus 94.1) will be reported at 9:55 ET.

* Dow Jones Industrial Average -2.8% YTD  * S&P 500 -3.2% YTD  * Nasdaq Composite -3.5% YTD  * Russell 2000 -4.0% YTD