(BFW) Deutsche Bank Sued by U.S. for Alleged Tax Scheme (Earlier)

Deutsche Bank Sued by U.S. for Alleged Tax Scheme (Earlier)
2014-12-08 22:10:13.548 GMT


By Jim Silver and Patricia Hurtado
Dec. 8 (Bloomberg) -- U.S. says bank used underfunded shell
companies to evade taxes, seeks $190m in taxes, penalties and
interest in lawsuit filed in Manhattan federal court.
* Deutsche Bank bought a corporation in 1999 that held stock
whose sale would trigger more than $100m in taxable gains
because it rose in value, according to the government
* To avoid paying the taxes, bank made deal with firm that
created three shell companies, which served as underfunded
special-purpose vehicle “with no function other than to be
stuck with a tax bill that it could never pay,” according
to the U.S.
* “Deutsche Bank tried to make its potential tax liabilities
disappear,” Manhattan U.S. Attorney Preet Bharara said in a
statement
* “We fully addressed the government’s concerns about this
14-year-old transaction in a 2009 agreement with the IRS,”
Rene Calabro, a spokeswoman in New York for Deutsche Bank,
said in an e-mailed statement
* “In connection with that agreement they abandoned their
theory that DB was liable for these taxes, and while it
is not clear to us why we are being pursued again for
the same taxes, we plan to again defend vigorously
against these claims,” Calabro said
* “In connection with that agreement they abandoned their
theory that DB was liable for these taxes, and while it
is not clear to us why we are being pursued again for
the same taxes, we plan to again defend vigorously
against these claims,” Calabro said</li></ul>
* NOTE: Earlier, Deutsche Bank Libor Settlement Said Not to
Come Before March

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Patricia Hurtado in Federal Court in Manhattan at
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Jay Miller

>>> US Close Dow-0,59% S&P-0,72% NAsdaq-0,84% Russell-1,27%

Closing Market Summary: Stocks Slip while Oil Endures Another Major Dip

The stock market slumped on Monday as the S&P 500 ended lower by 0.7% with seven sectors in the red. The price-weighted Dow (-0.6%) finished a little ahead of the benchmark index while the Nasdaq (-0.8%) and Russell 2000 (-1.3%) lagged.

Equity markets around the world started the new week on a mostly lower note. However, continued hopes for stimulus from the PBoC sent China's Shanghai Composite higher by 2.8% to extend its gain over the past month to 25.0%. The advance took place after the latest trade data showed a better than expected surplus of $54.47 billion, which resulted from a 6.7% drop in imports (expected +3.5%). Hopes for additional stimulus were also present in Europe, but the key indices there could not stay out of the red amid weakness in growth-sensitive listings.

Fittingly, cyclical sectors were also responsible for the weakness in the U.S. with energy (-3.9%) taking it on the chin amid another decline in crude oil. The sector gave back its entire advance from last week while Chevron (CVX 106.80, -4.07) and ExxonMobil (XOM 91.70, -2.12) lost 3.7% and 2.3%, respectively. As for crude oil, the energy component plunged 5.5% to $63.10/bbl, which represents the lowest level since August 2009. Oil was not the only weak spot among commodities as copper and iron ore also retreated following China's trade data. This kept the pressure on the materials sector (-1.6%), which settled only ahead of energy.

Elsewhere, the technology sector (-1.2%) held up relatively well through the morning, but slipped into the afternoon amid broad weakness. Apple (AAPL 112.40, -2.60), Intel (INTC 37.21, -0.46), and Microsoft (MSFT 47.70, -0.73) lost between 1.2% and 2.3% while the PHLX Semiconductor Index sank 1.4%.

Also of note, the consumer discretionary sector (-0.8%) underperformed with shares of McDonald's (MCD 92.61, -3.70) diving 3.8% after the fast food giant reported a 2.2% decline in global comparable store sales in November, paced by a 4.6% decline in U.S. sales.

Although cyclical sectors were responsible for the bulk of the weakness, financials (+0.4%) tried to resist the broad pressure. The sector climbed through the first two hours of action, but returned in the middle of its range by the close to maintain its market-leading December gain of 2.2%.

Meanwhile, the second-best performer of the month—health care (+0.3%)—followed the same pattern as financials. The sector received an early boost from biotechnology after Merck (MRK 61.88, +0.39) agreed to acquire Cubist Pharmaceuticals (CBST 100.60, +26.24) for $102/share, which represents a 35.0% premium to CBST's average stock price over the past five days. Cubist soared 35.3% while the iShares Nasdaq Biotechnology ETF (IBB 313.79, +4.98) jumped 1.6% to a new record high.  

Treasuries ended the day near their highs with the 10-yr yield slipping five basis points to 2.26%. However, the front of the curve saw little change with the 2-yr yield slipping one basis point to 0.64%.

For its part, the Dollar Index (89.16, -0.18) took a step back from its multi-year high, but the index is still up more than 11.5% since May. That strength has prompted the Bank of International Settlements to issue a warning about the rising dollar and the potential impact to $1.1 trillion in dollar-denominated loans held by Chinese banks. The BIS said that continued dollar strength increases the potential for a credit shock being sent through East Asia.

Today's participation was in-line with average as roughly 794 million shares changed hands at the NYSE floor.

Tomorrow's economic data will be limited to October Wholesale Inventories (consensus 0.2%) and October JOLTS with both reports set to be released at 10:00 ET.
  • Nasdaq Composite +13.5% YTD 
  • S&P 500 +11.5% YTD 
  • Dow Jones Industrial Average +7.7% YTD 
  • Russell 2000 +0.3% YTD

>>> Cubist bid initiated by Merck

Cubist bid initiated by Merck (MergerMarket)

Talks for Merck’s (NYSE:MRK) USD 8.4bn bid to acquire Cubist Pharmaceuticals (NASDAQ:CBST) were initiated after the pharma major approached Cubist about a possible acquisition, said a person familiar with the situation.

The Lexington, Massachusetts based antibiotics maker subsequently sounded interest from other possible buyers before agreeing to the deal, the person added.

Earlier today, Merck announced that it has agreed to acquire Cubist for USD 102 per share in cash, or USD 9.5bn in enterprise value, a 35% premium to Cubist’s average stock price over the last five trading sessions.

Two industry bankers said Merck paid a significant premium to acquire Cubist as the White House Station, New Jersey-based pharma major has been discussing ramping up its antibiotics side of the business. Cubist was already trading at a steep valuation given it was rumored to be a takeover target, they said.

Cubist probably caught Merck’s attention by being the only large, pure-play independent antibiotics company that the buyer could acquire, the first banker added.

Cubist’s “solid portfolio of brands and late stage pipeline made Cubist an ideal acquisition for Merck. Cubist's experience and commercial portfolio will enable us to enhance our growing hospital acute care business. Notably, the acute care market is growing two times faster than the overall market and hospitals have become a central hub for healthcare delivery around the world, currently representing 25% of overall healthcare spend,” said Merck CEO Ken Frazier on a conference call following the merger announcement.

Merck is expected to file a Hart-Scott Rodino application shortly, the person said. The tender offer will also be launched soon, he added. The deal is expected to close in the first quarter of next year.

In this transaction, JPMorgan and Deutsche Bank served as financial advisors to Merck, and Hughes Hubbard & Reed LLP and Baker & McKenzie served as its legal advisors. Morgan Stanley and Goldman Sachs served as financial advisors to Cubist, and Ropes & Gray served as its legal advisor.

>>> TMUS : Offering 17.39M shares of its Mandatory Convertible Preferred Stock,

Offering 17.39M shares of its Mandatory Convertible Preferred Stock, Series A, with a liquidation preference of $50 per share. 
- Commencing a registered public offering of 17,391,305 shares of its Mandatory Convertible Preferred Stock, Series A, with a liquidation preference of $50 per share
- Expects to use the net proceeds from this offering for general corporate purposes, including capital investments and acquisition of additional spectrum unrelated to spectrum it may obtain in the Federal Communications Commissions pending AWS-3 spectrum auction. T-Mobile intends to grant the underwriters the option to purchase up to an additional 2,608,695 shares of its Mandatory Convertible Preferred Stock

>>> TMUS : Announces Proposed Public Offering of Mandatory Convertible Preferred

Announces Proposed Public Offering of Mandatory Convertible Preferred Stock 
- announced today that it is commencing a registered public offering of 17,391,305 shares of its Mandatory Convertible Preferred Stock, Series A, with a liquidation preference of $50 per share. T-Mobile expects to use the net proceeds from this offering for general corporate purposes, including capital investments and acquisition of additional spectrum unrelated to spectrum it may obtain in the Federal Communications Commissions pending AWS-3 spectrum auction. T-Mobile intends to grant the underwriters the option to purchase up to an additional 2,608,695 shares of its Mandatory Convertible Preferred Stock.

NY Post : Sorrell chides companies for short-term thinking

Company executives are acting more like politicians looking for short-term success so they can get re-elected than long-term stewards of brands, according to ad boss Martin Sorrell.
The 69-year old CEO of WPP Group criticized companies for short term thinking and focusing more on cutting costs rather than growing profits.
Sorrell, speaking at the UBS media conference on Monday, described a business environment where a typical chief executive lasts five years, a chief financial officer for three years and chief marketing officers for two years.
“It’s unlikely those people are going to do things for the long term, they’re becoming like politicians,” Sorrell said. “It’s a consistent worry.”
The Madison Avenue maven talked up WPP’s “agnostic” data capabilities and warned clients against handing their media plans to digital ad platforms owned by web giants such as Google’s Doubleclick or Facebook’s Atlas.
WPP acquired a stake in AppNexus in September which competes in the digital ad placement business.
Sorrell also discussed the continued rise of China-based companies, like Alibaba, that are juggernauts in the retail and advertising game.
WPP has an e-commerce joint venture, called Polestar, that is staffed in part with former Alibaba employees. It hopes to profit alongside the growth of “proximity retailing connected to e-commerce activity.”
Proximity retailing refers to small stores close to homes or offices.
Sorrell also got in some digs against his chief competitors, Publicis Groupe and Omnicom Group, that in May abandoned a proposed merger.
The CEO said the proposed hook-up had focused WPP on scaling its digital assets rather than getting bigger in its traditional ad business.
“‘They have no original data capabilities,” he said, referring to the two companies. “Tech and data is giving us meaningful differentiation.”

(BFW) Repsol Said to Revive Talks With Talisman Over Possible Deal

Repsol Said to Revive Talks With Talisman Over Possible Deal
2014-12-08 20:21:20.246 GMT


By Aoyon Ashraf
Dec. 8 (Bloomberg) -- Repsol SA revived talks with Talisman
Energy, people with knowledge of the matter told Bloomberg’s
Matthew Monks, Manuel Baigorri and Scott Deveau.
* Cos. discussing options that may include sale of certain
assets or whole co.
* Spokesmen for Talisman and Repsol declined to comment
* NOTE: Sept. 19, Talisman May Still Pursue Asset Sales to
Repsol: CEO Kvisle; Link
* NOTE: Aug. 28, Repsol Said to Drop Plan to Buy All of
Talisman Energy; Link
* July 23, Talisman Energy Says It’s Been Approached by
Spain’s Repsol; Link
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>>> ICE/ EURONEXT Announces Pricing for Placement of Residual Euronext stake; T

Announces Pricing for Placement of Residual Euronext stake; Total proceeds of €96.8 million Announced today the pricing of the placement of 4.2 million shares in Euronext N.V., representing approximately 6% of Euronexts share capital, by way of an accelerated book-building to institutional investors.The gross proceeds to ICE from the sale amount to €96.8 million.Following the sale, which is expected to close on December 11, 2014, ICE will no longer hold any of Euronexts shares or voting rights. This transaction marks the final exit from Euronext by ICE initiated in 2014.