>>> US Gapping up

Gapping up
In reaction to strong earnings/guidance: NVRO +35%, RNF +12.9%, RTK +9.3%, VGGL +9.3%, W +8.8%, KBIO +8%, CGA +7.7%, NES +5.2%, DF +5.2%, MBLY +2.8%, GORO +2.7%, TICC +2.7%, ACT +2.6%, ENDP +2.6%, ENDP +2.6%, GWPH +1.8%, BDSI +1.4%, AU +1.2%, KNDI +1.1%, SSYS +0.5%

M&A news: ROSE +32.8% (to be acquired by Noble Energy (NBL) in an all-stock transaction valued at $2.1 billion, or an implied value of $26.62/share), CBK +2.4% (Christopher & Banks considering sale of the company, according to NY Post), SYT +0.9% (Monsanto (MON) considering raising bid for SYT, according to Reuters; also upgraded to Buy from Neutral at UBS)

Select metals/mining stocks trading higher: SSRI +11.1%, RIO +2.6%, VALE +2.2%, GOLD +0.9%, BHP +0.9%

Other news: CALI +38.8% (China stocks strong overnight after PBOC rate cut), ZU +20.9% (Alibaba (BABA) disclosed Friday night in a Form 4 filing that it purchased 11.5 mln shares of ZU), CANF +15.1% (announces it recently received clearance from the EMA to commence dosing patients in Europe in its global Phase II trial for CF102 in the treatment of hepatocellular carcinoma),MYOS +12.7% (announces the initiation of a dose response clinical study of Fortetropin), RXII +6.3% (announces new data for self-delivering RNAi compounds), SFUN +4.3% (China stocks strong overnight after PBOC rate cut), GIGM +3.8% (announces that CFO Dirk Chen has resigned for personal reasons; also reported earnings), TOUR +2.6% (appoints COO Alex Yan as President), ENDP +2.5% (acquires a portfolio of branded and generic injectable products focused on pain, anti-infectives and cardiovascular applications from Aspen Holdings for $130 mln)

Analyst comments: ADRO +4.9% (initiated with a Outperform at Leerink Partners; initiated with a Buy at BofA/Merrill), Z +3.6% (upgraded to Buy from Neutral at Sun Trust Rbsn Humphrey), GDDY +2.8% (initiated with a Overweight at JP Morgan, among others), CDTX +2.1% (initiated with a Outperform at Wedbush), WWWW +1.8% (upgraded to Buy from Hold at Deutsche Bank ),MNST +1.6% (upgraded to Buy from Neutral at Citigroup), SFM +1.2% (upgraded to Outperform from Market Perform at BMO Capital), CSCO +1.2% (upgraded to Outperform from Sector Perform at Pacific Crest), CAT +0.8% (upgraded to Outperform from Neutral at Robert W. Baird), JOY +0.8% (upgraded to Outperform from Neutral at Robert W. Baird), SBH +0.8% (upgraded to Outperform from Mkt Perform at Raymond James), NOK +0.7% (upgraded to Outperform from Neutral at Exane BNP Paribas)

(BFW) Crashed Airbus A400M Had Engine Failure, Spiegel Reports

MORE: Crashed Airbus A400M Had Engine Failure, Spiegel Reports
2015-05-11 11:44:41.641 GMT


By Stuart Metzler and Todd White
(Bloomberg) -- Aircraft suffered multiple engine failures
shortly after takeoff, Spiegel reports, citing details given to
authorities by unidentified survivor.
* Reason for failure still unclear, Spiegel reports
* Report called false by Spanish Defense Ministry spokesman
Miguel Morer, who said the two survivors were too injured to
speak, in response to Bloomberg News
* A400M test flights to continue until clear evidence of
mechanical failure is presented, Airbus spokesman said on
Sunday
* Link to Spiegel Online report (in German only)
* Note May 10: Airbus A400M Stays on Ground Across Europe
After Fatal Crash Link

Story Link:NSN NO6AJY6K50XW<GO>

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

To contact the reporter on this story:
Todd White in Madrid at +34-91-700-9604 or
twhite2@bloomberg.net
To contact the editors responsible for this story:
Paul Dobson at +44-20-3525-2041 or
pdobson2@bloomberg.net

>>> Sotheby's beats by $0.09, beats on revs

Sotheby's beats by $0.09, beats on revs
Reports Q1 (Mar) earnings of $0.11 per share, excluding non-recurring items, $0.09 better than the Capital IQ Consensus Estimate of $0.02; revenues fell 0.7% year/year to $155.7 mln vs the $151.73 mln consensus.
  • Co reported an 8% increase in auction commission revenues, attributable to improved auction commission margins, and 3% growth in Net Auction Sales. The improvement in auction commission margin is primarily due to the change in the buyer's premium rate structure enacted on 1 February 2015 and a lower level of buyer's premium shared with consignors.

>>> Rosetta Ressources (ROSE) To be acquired by Noble Energy for $26.62/shr in s

To be acquired by Noble Energy for $26.62/shr in stock (approx 38% premium); total deal valued around $2.1B; deal to be immediately accretive 

Noble Energy will acquire all of the common stock of Rosetta in an all-stock transaction valued at $2.1 billion, plus the assumption of Rosetta's net debt of $1.8 billion as of March 31, 2015. Under the definitive agreement, Rosetta shareholders will receive 0.542 of a share of Noble Energy common stock for each share of Rosetta common stock held. Based on the Noble Energy closing price on May 8, 2015, the transaction has an implied value to Rosetta shareholders of $26.62 per share, representing a 28 percent premium to the average price of Rosetta stock over the last 30 trading days. Following the transaction, shareholders of Rosetta are expected to own 9.6 percent of the outstanding shares of Noble Energy. Deal expected to close Q3 2015 

Rosetta's liquids-rich asset base includes approximately 50,000 net acres in the Eagle Ford Shale and 56,000 net acres in the Permian (46,000 acres in the Delaware Basin and 10,000 acres in the Midland Basin). Noble Energy has identified in excess of 1,800 gross horizontal drilling locations for development, providing net unrisked resource potential of approximately one billion barrels of oil equivalent. Rosetta's assets produced 66 thousand barrels of oil equivalent per day in the first quarter of 2015, and year-end 2014 proved reserves were 282 million barrels of oil equivalent. More than 60 percent of Rosetta's current production and proved reserves are liquids. Noble Energy anticipates a compounded annual production growth rate from these assets over the next several years of approximately 15 percent, generating positive free cash flow on an annual basis. 

Noble Energy CEO: The Eagle Ford and the Permian are premier unconventional resource plays, two of the most economic in the U.S., which will expand our resource base and development inventory and further diversify our portfolio. The transaction will be immediately accretive to our per share production, reserves, earnings, and cash flow.

(Makor) Ahold for Delhaize - first comments

Ahold for Delhaize
Belgian newspapers De Tijd and L’Echo reported May 9 that the companies are in early talks to merge.
Firstly, this is unlikely to be a merger but more a potential takeover of Delhaize Mcap 8.4bn Euro by its Dutch rival Ahold Mcap 16.4bn Euro.
However, we are cautious on this deal (optimistic yes but cautious)
The negatives are that Delhaize multiples are already high. For example, Delhaize EV/Sales multiple over the prior 3 years is 0.29x Ev/Sales average. Delhaize is at current share price of Eur84.1 trading at 0.44x Ev/Sales or c50pct higher than average. Bear in mind this merger has been on the making for years and there does not seem to be counter bidders, so at current share price and sales multiple, Delhaize would need to have evident synergies with Ahold. Antitrust in benelux may also be a concern (who are the ready buyers if a divestment is required?).
The positive is that CEOs are reactiing to the European MnA environment and pursuing long rumoured mergers, Delhaize Ev/Sales multiples have been improving vs Ahold. For example in 2012 the Ev/Sales multiple for Delhaize was 48pct discount to Ahold’s (0.25x vs 0.37x) the consensus forward 2015 Ev/Sales multiple puts the discount at 21pct. The market is re-rating Delhaize’s sales and both companies have a foothold in the US which could drive synergies. This may mean the timing is right for Ahold to take Delhaize over. Also Delhaize and Ahold share a common large holder (Silchester), similar FcF generation and leverage.
Short covering in Delhaize and the unwinding of long/short positions may push the Delhaize share price in the short term but we await for further details