>>> Bouygues/Altice: Equity issue at Numericable level seen as most viable finan

DEAL REPORTER

Bouygues/Altice: Equity issue at Numericable level seen as most viable financing route
Altice [AMS:ATC] could finance a bid for French telco Bouygues Telecom by issuing new shares in its subsidiary Numericable, two bankers and a minority investor said.

The market expects Altice to make an announcement on its next European telco target “soon”, they said.

Dexter Goei, Altice CEO, said in November the company would be the “most natural buyer” of Bouygues Telecom, adding that a deal could happen this year. The transaction would generate considerable synergies from infrastructure, sales and marketing, he said.

A merger between the two companies could result in around EUR 6bn in synergies, the Altice minority shareholder said. Around half of this could be used to pay the seller, French telecoms and construction group Bouygues [EPA:EN], he said.

Extensive synergies mean Altice may be able to do the deal in cash only, the first and a third banker said. But, Altice’s recent purchases – SFR and PT Portugal – mean its balance sheet is stretched, so raising capital would be necessary, the first banker and investor said.

Altice’s FY2014 results (published March 2014) show the company’s synergised net leverage stands at 4.4x. The telco could raise leverage to 4.5x EBITDA to finance a deal, a fourth banker believed.

Altice could even look at financing the acquisition with debt only, a fifth banker speculated. The debt market is very favourable at the moment, so it would be feasible, this banker said.

Assuming a price tag of EUR 8bn for Bouygues Telecom, a deal wholly funded with debt would take Altice's net leverage/Ebitda to 5.5x, not taking synergies into account, according to Dealreporter analytics.

Culturally, Altice is not as constrained by leverage as other telcos when it comes to M&A, the third banker agreed. But, completing a transaction the size of Bouygues – which could cost up to EUR 8.5bn – without additional equity would be difficult, the first banker said.

When acquiring SFR, Altice used a combination of debt and a rights issue, while at the same time handing equity over to the seller, Vivendi [EPA:VIV]. Altice could repeat some of this structure by partly paying Bouygues in Numericable-SFR shares, the minority shareholder said. While also dilutive, this structure could be used instead of a rights issue and would likely be supported by investors, he added.

But, issuing rights at the Numericable level would be welcome, as it would increase liquidity. The market would be responsive to a rights issue at Numericable, the second banker said, adding there would certainly be enough demand.

But, depending on the timing of the acquisition, a capital raise at the Numericable level would not necessarily be needed, the fifth banker suggested. Altice has committed to divesting Portuguese businesses Oni and Cabovisao in order to acquire PT Portugal, and it may also gain increased financial flexibility from sales of assets related to its SFR buy.

Bouygues was in separate negotiations to sell its telecoms unit to Iliad and Orange last year, but bids did not match its expectations.

wansquare) Renault : Colette Neuville écrit à l'AMF

Renault : Colette Neuville écrit à l'AMF pour réclamer davantage de transparence

Selon les informations de WanSquare, la présidente de l'Adam estime que l'opération n'est pas claire. Un nombre croissant de professionnels financiers et boursiers s'interroge sur l'opportunité des droits de vote double.

Les différentes problématiques liées à la gouvernance des entreprises et plus particulièrement, la mise en place des droits de vote double dans le cadre de la loi Florange déchaînent décidément les passions. Et surtout les commentaires de nombre de professionnels financiers et boursiers. Dans « l’Hebdo des AG » réalisé par Bénédicte Hautefort, on y trouve ainsi une analyse au vitriol d’Aldo Sicurani, délégué général de la F2IC (Fédération des investisseurs individuels et des Clubs d’investissement) qui gravite dans le monde boursier depuis de longues années. « Dans la loi Florange, ce que nous contestons, c’est la position unilatérale et opportuniste de l’Etat qui oblige les entreprises à se positionner. L’Etat est amené à un comportement scandaleux qu’il dénonce à raison chez les activistes. Or il fait pareil chez Renault…(…)…Cela dit, les droits de vote en assemblée ne sont pas une revendication des actionnaires individuels : ils ont l’impression que leur vote ne compte pas. La plupart ne votent pas parce qu’ils ne sont pas informés puisqu’ils sont le plus souvent au porteur…(…).Ce qui freine le passage au nominatif, ce sont les frais liés à ce transfert. La conséquence, c’est qu’ils ne se sentent pas vraiment concernés par les droits de vote double. Ils préfèrent les dividendes majorés ».

De son côté, Colette Neuville, présidente de l’Adam vient d’envoyer à Gérard Rameix, le président de l’AMF un courrier concernant la montée au capital de l’Etat dans Renault. Dans ce courrier dont WanSquare a pu prendre connaissance, on peut notamment y lire qu’elle trouve dans cette opération, deux sujets de préoccupation : la légitimité de la dissociation entre le droit de vote et le risque économique, et un problème de transparence dans l’information donnée au public.

Concernant le premier sujet, Colette Neuville annonce tout de suite la couleur : « si de nombreux procédés permettent en toute légalité de dissocier l’exercice du droit de vote du risque économique (notamment les prêts emprunt de titres, les ventes à réméré, les opérations à terme assorties d’options d’achat et de vente), la légitimité de telles opérations en période d’assemblées générales pose par contre problème dans la mesure où elles permettent d’influer sur le déroulement des assemblées et faire adopter des décisions, voire prendre momentanément le contrôle de sociétés, sans prendre aucun risque ». « L’utilisation à deux reprises par l’Etat de procédés d’acquisition temporaire pour peser sur les décisions de grandes sociétés, outre qu’elle est choquante au plan des bonnes pratiques de gouvernance, crée un précédent dangereux : le risque est grand de voir de telles pratiques se multiplier et transformer les assemblées générales en affrontements entre détenteurs de 'votes vides' au nez et à la barbe des vrais actionnaires – c'est-à-dire de ceux qui ont payé leurs actions et ont accepté le risque de l’entreprise. Le problème a pris de telles proportions qu’il exige une réforme de la loi de manière à rétablir la cohérence nécessaire entre légalité et légitimité, de manière aussi à éviter les perturbations du marché qu’entraînent nécessairement ces cessions temporaires, quels que soient les procédés employés », ajoute-t-elle.

Côté transparence, Colette Neuville revient également sur la transaction annoncée. "On observe que le communiqué de l’APE en date du 8 avril fait état de la cession par le PSI à l’Etat de 9,56 millions de titres le 7 avril (« le prestataire de services d’investissement a cédé hier 9,56 millions de titres »). On en déduit que cette cession a eu lieu le 7 avril. Or, d’après la déclaration de la Deutsche Bank, c’est le 8 avril que cet établissement a franchi le seuil de 5% de Renault pour détenir 17.847.662 actions. Ces déclarations méritent explication tant sur le calendrier des opérations que sur leur montant". Pour finir, elle demande donc à l’AMF qu’un nouveau groupe de travail soit constitué afin de « proposer des réformes susceptibles de limiter, voire de mettre un terme aux pratiques qui se multiplient visant à dissocier le pouvoir et le risque économique en période d’assemblées générales ». De même réclame-t-elle que toute la transparence soit faite sur le calendrier et les modalités de la cession temporaire de titres Renault à l’APE. « Cette transparence est d’autant plus nécessaire qu’il s’agit d’une opération réalisée par l’Etat dont on est en droit d’attendre qu’il soit exemplaire ».

Gilead Should Buy Vertex Now for ~50% Premium, Bernstein Says

Hearing ackman took a 2bil stake in Gilead to push for this deal

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Gilead Should Buy Vertex Now for ~50% Premium, Bernstein Says 2015-04-21 12:26:17.766 GMT

By Catherine Larkin and Joshua Fineman (Bloomberg) -- Gilead buying Vertex would send both stocks up, Bernstein analyst Geoffrey Porges says in note. * GILD has a lot of cash and debt capacity and VRTX “by far” offers best fit * With 50% premium over VRTX’s recent stock price, a $45.5b cash/debt deal could add to GILD’s earnings after 2017, push GILD valuation to $135-$140/shr in N-T * Rates GILD outperform, PT $125; rates VRTX market perform, PT $134 * VRTX up as much as 3.1% pre-mkt to $129.49, on vol. 793; shrs had gained 5.7% YTD

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

To contact the reporters on this story: Catherine Larkin in Chicago at +1-312-443-5968 or clarkin4@bloomberg.net; Joshua Fineman in New York at +1-212-617-8953 or jfineman@bloomberg.net To contact the editor responsible for this story: Arie Shapira at +1-212-617-1488 or ashapira3@bloomberg.net

>>> US Gapping up

Gapping up

Gapping up In reaction to strong earnings/guidance: FTNT +10.9%, LRCX +9.7%, HLX +8.1%, MTG +4.8%, ARMH +4.1%, KMB +4.1%, MLNX +4%, JAKK +3.6%, SAP +2.3%, MAN +1.5%, UTX +1.2%, SNV +1.1%, NTRS +1.1%

M&A news: MYL +7.1% (Teva (TEVA) may make a bid for MYL as soon as today, according to Bloomberg, while Times of India reports on possible MYL $5 bln investment in Andhra Pradesh's pharma sector), ALU +3.9% (cont vol surrounding merger with NOK), NOK +3.2% (cont vol surrounding merger with ALU), TEVA +2.8%

Other news: IBIO +12.7% (cont strength), BCLI +10.7% (to present results from its phase 2a study of NurOwn in amyotrophic lateral sclerosis), ALNY +8.7% (announces one year clinical data from its phase 2 OLE study of Patisiran), AMSC +8.5% (announced U.S. Navy's intention to order High Temperature Superconductor equipment), LRE +7.9% (Vanguard Natural Resources (VNR) announces deal to Acquire LRR Energy for $539 mln), CHL +4.7% (China/HK mkts strong over night), INO +4% (Inovio Pharma and Roche (RHBBY) initiate clinical trial for Inovio's DNA immunotherapy to treat chronic hepatitis b infection), BCRX +4% (still checking), FEYE +3.7% (FireEye and HP (HPQ) announce a partnership to make incident response, compromise assessment and threat detection offerings available to HP Enterprise Services' most strategic clients globally), EVEP +3.2% (John B. Walker, Executive Chairman of EV Management, disclosed 5.4% active stake in 13D filing), PPHM +2.8% (announces preclinical data regarding Phosphatidylserine presented), NVO +2.7% (still checking), SPNS +1.9% (announces announces $7.2 mln dividend), NVS +1.6% (reports data at AAN showing Gilenya high efficacy in achieving 'no evidence of disease activity' in previously-treated highly-active MS patients), PCTI +1.4% ( announces its Board of Directors authorized the re-purchase of 500,000 shares), CHU +1.2% (reports operational statistics for the month of March 2015)

Analyst comments: BCRX +9.4% (initiated with a Outperform at FBR Capital), LJPC +8.3% (initiated with a Perform at Oppenheimer), ALGN +4.7% (upgraded to Overweight from Equal-Weight at Morgan Stanley), SNTA +3.8% (initiated with an Outperform at FBR Capital), CYTR +3.5% (initiated with an Outperform at FBR Capital), GERN +3.4% (initiated with a Perform at Oppenheimer), WUBA +2.9% (upgraded to Outperform from Neutral at Credit Suisse), RUBI +2.7% (initiated with a Outperform at Raymond James ), LL +2.4% (initiated with a Buy at Cantor Fitzgerald), ECA +2.4% (upgraded to Overweight from Equal-Weight at Morgan Stanley), BMY +2.2% (upgraded to Overweight from Equal-Weight at Morgan Stanley; tgt raised to $80 from $60), CGEN +1.8% (initiated with a Perform at Oppenheimer), FR +0.6% (upgraded to Buy from Hold at Stifel)

>>> US Gapping down

Gapping down
In reaction to disappointing earnings/guidance: SANM -10.5%, HOG -6.8%, FTK -6.1%, IEX -5.9%,UCTT -5.7%, BMI -4.3%, PKG -3.3%, UA -3.2%, TCK -2.4%, STLD -2.1%, AMTD -1.7%, CS -1.6%, TRV -1.3%, ZION -0.9%, BHI -0.8%

M&A news: IEX -5.9% (announced an agreement to acquire 100% of Novotema shares), PRGO -2.9% (negative response to MYL/TEVA merger spec -- MYL rumored to buy PRGO)

Other news: NVGN -24.7% (shares were halted in Australia for the announcement of a rights offering and private placement), NBG -10.2% (still checking), NQ -7.5% (announces that Omar Khan, current Co-CEO, has decided to transition to an advisory role and step down in his capacity as Co-CEO), ALDX -6.6% (filed for 3 mln share offering of common stock), BAM -4.2% (announces US$1,075 million equity offering), PRGO -2.9% (negative response to MYL/TEVA merger spec -- MYL rumored to buy PRGO), RIO -1.8% (announces a Q1 production update; also downgraded to Equal Weight from Overweight at Barclays), NRX -1.7% (filed for $34.5 mln offering of common stock), MT -1.7% (in symp with RIO), DEG -1.3% (JP Morgan Asset Mgmt notifies co that it now owns less than 3% of Delhaize Group's voting rights), HRL -0.9% (announced highly pathogenic H5N2 avian influenza has been detected at multiple turkey farms that supply Jennie-O Turkey Store; co reaffirmed FY15 guidance)

Analyst comments: SHAK -3.4% (downgraded to Hold from Buy at Stifel), RJET -1% (downgraded to Hold from Buy at Evercore ISI), MAT -0.9% (downgraded to Sell from Hold at Argus)

>>> Teva confirms proposal to acquire the company at $82/shr in cash and stock v

Teva confirms proposal to acquire the company at $82/shr in cash and stock valued at more than $36.7B 
- Tevas proposal would provide Mylan stockholders with consideration representing a 37.7% premium to the stock price of Mylan on April 7, 2015, which is the last day of trading prior to Mylans press release regarding its unsolicited proposal for Perrigo, and a 48.3% premium to the unaffected stock price of Mylan on March 10, 2015, which is the last day of trading prior to widespread speculation of a transaction between Teva and Mylan. Composed of approximately 50% cash and 50% Teva stock
- The opportunities for substantial achievable cost synergies and tax savings are estimated to be approximately $2 billion annually and are expected to be largely achieved by the third anniversary of the closing of the transaction. Teva expects the savings to come from operational, SG&A, manufacturing and R&D efficiencies, as well as tax savings.
- Teva believes the combination would be significantly accretive to non-GAAP EPS, including expected non-GAAP EPS accretion in the mid-teens in the first year, and approaching 30% by the third year.
- The transaction would not be subject to a financing condition or require a Teva stockholder vote
- Teva expects that the proposed transaction can be completed by year-end 2015.