>>> BPM may announce M&A operations at shareholders' meeting on 11 April

BPM may announce M&A operations at shareholders' meeting on 11 April
Banca Popolare di Milano (BPM) the Milan-based listed cooperative bank, could announce M&A operations at its shareholders' meeting on 11 April, Italian language daily Milano Finanza reported. The report cited unspecified sources who said that it was likely that BPM would make a major announcement on M&A at the meeting.

The report said that shareholders are also likely to vote on turning BPM into a joint stock company, in line with Italian legislation designed to encourage medium-sized cooperative banks to merge. The report noted that BPM has already publicly stated that the lender will look to turn itself into a joint stock company well before the 18 month grace period granted by the government for cooperative lenders to make the switch.
The item added that BPM could appoint advisors to carry out a merger right after the shareholders' meeting. The report said that Banco Popolare, another listed cooperative lender, is the favourite to be the merger partner.

BPM has a market cap of EUR 4.19bn and Banco Popolare EUR 5.33bn.

Source Milano Finanza daily edition

>>> Benetton Group may sell stake to Uniqlo - Il Sole 24 Ore

Benetton Group may sell stake to Uniqlo – report (translated)

Benetton, the privately-held Italian clothing group could sell a stake to Japanese retailer Uniqlo, Italian language daily Il Sole 24 Ore reported on 5 April.

Benetton is considering selling the stake, as it would allow the group to penetrate Asian markets, the unsourced article said.

Benetton could also sell a stake in Olimpias, the Italian hat manufacturer, which has a turnover of EUR 400m. The report said the aim would be to broaden Olimpias' operations in Europe.

Boston Consulting Group is advising on both the operations, the article noted.

In a recent interview, Gilberto Benetton, head of the Benetton Group, confirmed that a stake could be sold to either an industrial or financial investor. Benetton said that a relisting could also be a possibility or a combination of all three options could be pursued.

Both Benetton and Olimpias are owned by the Benetton family via their Edizione Holding.

Source Il Sole 24 Ore

>>> BioMarin rises amid speculation Pfizer might outbid Shire

BioMarin rises amid speculation Pfizer might outbid Shire 

Shares in BioMarin Pharmaceutical (Nasdaq: BMRN) climbed 4% yesterday, 7 April, amid market chatter of a potential bid for the California-based biopharma company from Pfizer (LON: PFZ), The Daily Mail reported. New York-based drugs giant Pfizer is rumoured to be prepared to outbid any approach the Ireland-headquartered pharmaco Shire (LON: SHP) might make, the market report said.
Daily Mail

FT : Shell in ‘advanced’ talks with BG over £46bn deal

Shell in ‘advanced’ talks with BG over £46bn deal

Royal Dutch Shell is in advanced talks to acquire BG Group for around £46bn ($68bn), in a deal that would expand the Anglo-Dutch group’s foothold in some of the world’s most exciting oil provinces and cement its dominance of the global trade in natural gas.
Since the price of crude began its rapid decline last June, expectations have been high that the oil sector could see a repetition of the mergers and acquisitions fever that reconfigured the industry in the late 1990s — another period of low oil prices.

That created the current crop of big oil companies such as BP, Chevron and ExxonMobil. Shell’s bid is worth about £46bn, according to people familiar with the matter, which represents a 50 per cent premium to BG’s market value. BG shares closed up 6.3 per cent at 910.4p on Tuesday, valuing the company at £30.7bn, before news of the talks broke.
Some significant deals have already materialised: Halliburton, the oil services group, recently bought rival Baker Hughes for $35bn and Repsol of Spain late last year acquired Talisman Energy of Canada for $8.3bn. Rex Tillerson, chief executive of ExxonMobil, said last month that the company could be open to a large deal.
Acquiring BG would give Shell access to significant reserves of oil and gas and spare it the cost of trying to boost its reserve base through exploration, which is becoming increasingly expensive. For example, Shell has spent about $6bn on its hunt for oil off the north coast of Alaska, and has not yet managed to finish a single well.
A takeover would also give Shell a significant foothold in an area offshore Brazil known as the pre-salt, which is one of the world’s most highly-prized oil provinces, as well as a big position in unconventional gas in Australia.
BG is one of the world’s largest producers and traders of liquefied natural gas, a form of gas that is supercooled to a liquid state and exported round the world on special tankers. Shell, too, has a huge position in LNG and will dominate the global trade in the fuel if it acquires BG. BG has recently completed work on a $20bn LNG facility in Australia, which began production at the start of the year after years of delays and cost overruns.
BG confirmed in a statement late on Tuesday that it was in advanced discussions with Shell, though it said there could be no certainty that the Anglo-Dutch major would make an offer.

It said that in accordance with the UK Takeover Code, Shell had to announce its firm intention to make an offer for BG by May 5 or say it did not intend to — though the deadline can be extended.
BG has been hit particularly hard by the 50 per cent slide in crude, which helped push it into a full-year loss for 2014. The company’s share price has fallen by around 28 per cent since last June, when oil began its decline, and in February it announced it was writing down the value of its asset portfolio by $8.9bn to reflect the price fall.
The company has also been wracked by management instability in recent years. Its long-serving chief executive Sir Frank Chapman was replaced in 2013 by Chris Finlayson who lasted only 16 months in the job. He was temporarily replaced by Andrew Gould, BG’s chairman. The company’s current chief executive Helge Lund, former boss of Norwegian state oil major Statoil, took the helm in February.
A person familiar with the matter said that Shell’s bid was unsolicited, and BG had not been put up for sale. Mr Lund had been installed as chief with a remit to turn round the company, which has been hit by a series of profit warnings and significant problems at its Egyptian operation in the wake of the Arab spring.
Under Mr Gould, the industry veteran who was previously chief executive of Schlumberger, the oil services group, BG continued its push to accelerate asset sales aimed at slimming its debt levels and protecting its credit rating.

Ahead of confirmation last year of Mr Lund’s appointment, Mr Gould outlined his commitment to radical dealmaking.
“Nothing is sacrosanct, there are no sacred cows,” he said. “In reviewing our optionality both for disposals, as for future developments, everything is on the table.”
In February, presenting BG’s results ahead of Mr Lund’s formal arrival, Mr Gould warned the recent fall in oil and gas prices appeared to threaten the worst shock to the sector since the collapse of 1986, when big additions to world supply led to a protracted decline in the cost of crude.
He said BG would respond by cutting capital expenditure by 30 per cent compared with last year as the company dropped its prediction that it would achieve free cash flow by late 2015 following years of heavy investment in Australia and Brazil.

>>> Asian Update

Asian Mid-session Update: BOJ again lowers inflation assessment; Kiuchi amends descent in favor of reducing monetary base growth to ¥45T from ¥80T


***Economic Data***
- (JP) JAPAN FEB CURRENT ACCOUNT: ¥1.4T V ¥1.2TE; ADJ CURRENT ACCOUNT: ¥604B V ¥605BE; TRADE BALANCE: -¥143B V -¥240BE (lowest deficit in 18 months)
- (AU) Australia ANZ Roy Morgan Weekly Consumer Confidence Index:109.7 v 112.3 prior
- (TW) TAIWAN MAR CPI Y/Y: -0.6% V -0.7%E; WPI Y/Y: -8.6% V -7.8%E
- (PH) PHILIPPINES FEB EXPORTS: $4.5B v $4.4B PRIOR; Y/Y: -3.1% v +0.8%E
- (KR) South Feb Jan "L" Money Supply M/M: +0.7% v +0.9% prior; M2 Money Supply M/M: 1.0% v 0.2% prior
- (UK) UK MAR BRC SHOP PRICE INDEX Y/Y: -2.1% V -1.7% PRIOR (22nd consecutive decline, biggest decline since Dec 2006)

***Index Snapshot (as of 02:30 GMT)***
- Nikkei225 +0.4%, S&P/ASX +0.2%, Kospi +0.5%, Shanghai Composite -0.3%, Hang Seng +2.1%, Jun S&P500 -0.1% at 2,066

***Commodities/Fixed Income***
- Jun gold -0.2% at $1,208/oz, May crude oil -1.9% at $52.98/brl, May copper -0.7% at $2.74/lb
- (US) API PETROLEUM INVENTORIES: CRUDE: +12.2M (largest build since Feb 18th; 4th straight build) v +3.5Me, GASOLINE: +2.7M v -1.5Me, DISTILLATE: -0.33M v +1Me
- GLD: SPDR Gold Trust ETF daily holdings fall 2.4 tonnes to 733.1 tonnes; Lowest since Jan 17th
- (AU) Australia MoF (AOFM) sells A$500M in 3.75% bonds due 2037; Avg yield: 2.8421%; Bid-to-cover: 2.69x
- (AU) RBA, PBoC enter A$40B currency swap agreement
- (CN) China MOF sells 10-year bonds at 3.64%

***Market Focal Points/FX***
- Equity indices are mixed, reflecting the tone of uncertainty from the US session where markets opened higher for the 3rd straight day but rolled over into marginal negative by the close. Hang Seng is a notable outperformer with a catch-up rally after returning from an extended holiday break. Both Hong Kong index and Shanghai Composite hit 7-year highs today, even though the latter fell by as much as 1% later in the afternoon session.

- In USD majors, the greenback traded softer across the board, particularly vs NZD and JPY currencies. NZD/USD rose about 40pips above $0.7530, AUD/USD was up 30pips above $0.7660, and EUR/USD rose about 30pips above $1.0840 at the highs. USD/JPY crashed below ¥120 handle right after the BOJ policy decision amid signs of strain in the policy board, down over 40pips from session highs. While the BOJ maintained its annual pace of growth in monetary base at ¥80T and maintained its economic assessment, board member Kiuchi amended his prior dissent of favoring the pre-October easing in exchange for more specific reduction of annual base growth to ¥45T. Interestingly, the statement said that call was voted down by "majority", not 8-1 margin as his other dissent for more extended timeline toward 2% inflation, and suggesting he may have garnered some support in his position. On inflation, the BOJ also lowered its CPI assessment for the 2nd straight month to 0% from prior view of 0.0-0.5%. Outlook for inflation remains at 0% as well.

- In energy, crude prices fell by over a dollar below $53/brl after a multi-week high build in API petroleum inventories. There were also reports that top Iranian officials would travel to Beijing this week to discuss oil projects as Tehran prepares for lifting of western sanctions. In the corporate energy space, BG confirmed press speculation that it is in late stages of discussing a bid by Shell that is rumored to be as high as £46B.

- In notable Chinese press reports, UBS economist warned that upcoming March and Q1 data would be soft, weighed down largely by the ongoing property downturn and weak industrial investment. Fang.com announced Shanghai land sales in Q1 fell 104% y/y to 1.12M sqm, explaining the more aggressive policy in property adopted by the PBoC. Securities Journal report also indicated the govt may unveil subsidy for as much as CNY6/t for domestic iron ore producers in mid-April.

***Equities***
US equities / ADRs:
- RGLS: RG-125 (AZD4076), selected by AZN for the Treatment of NASH in Patients with Type 2 Diabetes/Pre-Diabetes; +10.7% afterhours
- PLAY: Reports Q4 $0.33 v $0.27e, R$207.1M v $201Me; -1.4% afterhours
- LGF: Tracking within the lower range of prior guided adj EBITDA of $1.2-1.3B over three fiscal years ending Mar 2017 - filing; -3.4% afterhours
- PNR: Guides Q1 lower to $0.65 v $0.77e, R$1.48B v $1.61Be ($0.75-0.77, Rev approx $1.6B prior guidance); will be taking cost actions; -4.3% afterhours

Notable movers by sector:
- Consumer Discretionary: Aeon 8267.JP +3.1% (expected to reduce capex); Takashimaya 8233.JP +1.3% (FY14/15 results); Myer Holdings MYR.AU +3.4% (Solomon Lew considering a bid)
- Consumer staples: Sugi Holdings 7649.JP +1.8% (FY14/15 results); San-A Co 2659.JP +7.4% (FY14/15 results); Create SD Holdings 3148.JP +10.0% (9-month results)
- Financials: Beijing Capital Land 2868.HK -10.4% (Mar sales results)
- Energy: Beach Energy BPT.AU +6.5% (may sell asset); AWE AWE.AU +3.4% (provides exploration update); Woodside Petroleum WPL.AU +2.2% (announces gas discovery)
- Industrials: Kawasaki Heavy Industries 7012.JP +1.6% (press speculation on FY15/16 results); Great Wall Motor 2333.HK +6.8% (Mar sales results); BYD Company Limited 1211.HK +6.0% (sets target for energy storage sales)
- Technology: Susino Umbrella 002174.CN +10.0% (announces acquisition)

>>> Us After Hours : MIND +1.7%, HABT +1.6%, PLAY +1.5%, PNR -4

After Hours Summary: MIND +1.7%, HABT +1.6%, PLAY +1.5%, PNR -4.0%, LGF -3.2%, TISI -1.5% following earnings/guidance

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings: MIND +1.7%, HABT +1.6%, PLAY +1.5%, FLML +0.9%

Companies trading higher in after hours in reaction to news: RGLS
+9.4% (announced the selection of RG-125 for the treatment of Non Alcoholic Steatohepatitis in patients with type 2 diabetes/pre-diabetes, as a clinical candidate by AstraZeneca (
AZN) under the companies' strategic alliance), ELLI +1.7% (announced that Independent Bank has chosen Ellie Mae's Encompass all-in-one mortgage management solution as its platform for originating mortgages), CPHD +1.5% (announced appointment of Ilan Daskal to EVP and CFO, effective April 9, 2015)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings: PNR -4.0%, LGF -3.2%, TISI -1.5%

Companies trading lower in after hours in reaction to news: AMZG -17.3% (announced entry into a Forbearance agreement with four holders, who collectively own or manage in excess of 50% of co's August notes), CPTA -4.6% (announced an offering of 3.5 mln shares of common stock; provides preliminary estimates of results as of April 7, 2015), LGF -3.2% (announced offering of 10 mln shares of common stock being sold by MHR Fund Management), BIP -1.9% (announced $750.5 mln equity offering), MUX -0.9% (reported armed robbery at El Gallo 1 min; an estimated 900 kg of gold-bearing concentrate containing ~7000 ounces of gold were stolen) 

WSJ : Shell in Talks to Buy BG Group


Shell in Talks to Buy BG Group
Deal for gas producer, which has $46 billion market cap, would be one of year’s biggest

Royal Dutch Shell PLC is in talks to acquire BG Group PLC, according to people familiar with the matter.

BG, a gas producer, has a market capitalization of £31 billion ($46 billion), meaning a deal for the company would be one of the year’s biggest.

It would be a rare megadeal in the energy patch, where oil prices have declined sharply since the summer. In the first quarter, there were only $19.1 billion in oil and gas deals, according to Dealogic.

A deal of this size also would solidify what was already shaping up to be a banner year for mergers and acquisitions. In the first quarter, deal volume rose 24% to $874.1 billion globally.

In February, BG Group said it was writing down the value of its oil-and-gas assets by nearly $9 billion, as the company adjusts to the plunge in oil prices.

Shell also has taken steps to adjust to lower commodity prices. In January, the company said it would curb its planned spending over the next three years by $15 billion and scale back on shale investments.

Shell has a market capitalization of $192.4 billion.

>>> US Close Dow-0,03% S&P-0,21% Nasdaq-0,14% Russell-0,57%


Closing Market Summary: Stocks Post Modest Losses Amid Persistent Dollar Strength

Equity indices halted their two-day win streak on Tuesday with the S&P 500 shedding 0.2%. The benchmark index surrendered its modest intraday gain during the final hour while the Nasdaq Composite (-0.1%) settled just ahead.

The major averages climbed out of the gate and hit their session highs during the initial 90 minutes; however, relative weakness among influential sectors like consumer discretionary (-0.5%), financials (-0.4%), and consumer staples (-0.4%) prevented the market from eclipsing the early high. Instead, equities spent the afternoon in a sideways drift and slid into negative territory shortly ahead of the close.

Only two sectors finished the day in the green with health care (+0.3%) holding the lead into the afternoon. The countercyclical group underperformed yesterday, but today's strength was fueled by biotechnology. The iShares Nasdaq Biotechnology ETF (IBB 341.92, +3.07) jumped 0.9% and helped the Nasdaq Composite display relative strength throughout the day.

In addition to receiving support from biotechnology, the tech-heavy Nasdaq benefited from strength among chipmakers. That being said, the PHLX Semiconductor Index ended just above its flat line after being up more than 0.8%. Similarly, the broader technology sector (-0.15%) settled just ahead of the broader market while its largest component—Apple (AAPL 126.01, -1.34)—lost 1.1%.

Elsewhere among cyclical sectors, energy (+0.3%) outperformed, narrowing its 2015 decline to 1.2% as crude oil soared 3.5% to $53.89/bbl. Strikingly, oil spent the day in a steady climb even as the Dollar Index (97.95, +1.18) jumped 1.2%. Most notably, the greenback rallied 1.1% against the euro, sending the single currency to 1.0815.

Also of note, the industrial sector (-0.1%) could not stay out of the red, but that masked relative strength among transport stocks after FedEx (FDX 171.16, +4.49) announced it will acquire TNT Express (TNTEY 8.26, +1.71) for $4.8 billion. The Dow Jones Transportation Average gained 0.5% while FedEx spiked 2.7%, helping the Dow Jones Industrial Average (-0.03%) finish ahead of other indices.

On the downside, the consumer discretionary sector (-0.5%) was the weakest performer among cyclical groups. Homebuilders struggled throughout the day while retail names slumped during the afternoon. The iShares Dow Jones US Home Construction ETF (ITB 28.01, -0.50) lost 1.8% while SPDR S&P Retail ETF (XRT 100.63, -0.88) settled lower by 0.9%.

Treasuries retreated throughout the morning, but backtracked from their lows throughout the afternoon. The benchmark 10-yr yield ticked down one basis point to 1.89%.

Today's participation was well below average with fewer than 650 million shares changing hands at the NYSE floor.

Economic data was limited to the Job Openings and Labor Turnover Survey and Consumer Credit:
  • The February Job Openings and Labor Turnover Survey showed that job openings increased to 5.133 million from a revised rate of 4.965 million (from 4.998 million) 
  • The Consumer Credit report for February was showed an increase of $15.50 billion while the consensus expected a reading of $12.50 billion 
    • The prior month's credit growth was revised to $10.80 billion from $11.60 billion 
Tomorrow, the weekly MBA Mortgage Index will be reported at 7:00 ET while the FOMC minutes from the latest policy meeting will be released at 14:00 ET.
  • Nasdaq Composite +3.7% YTD 
  • Russell 2000 +4.0% YTD 
  • S&P 500 +0.9 YTD 
  • Dow Jones Industrial Average +0.3% YTD