*DANONE SAID TO WEIGH SALE OF $2 BILLION STAKE IN JAPAN'S YAKULT
STOXX 600 CHANGES: changes announced overnight effective Dec 22nd
Stocks joining index are: Mediaset Espana, CSR, BB Biotech, Micro Focus Intl, Dialog Semiconductor, Deutsche Annington, AA Plc, NN Group.
Stocks leaving index: Telekom Austria, Ratos B, Sky Deutschland, Petroleum Geo-Services, Fugro, Cairn Energy, Afren, Aker Solutions
US MArket closed little change, started to rally after Q3 GDP but moved lower after weakness in the energy sector (-1.6%) following meeting with some OPEC members and no decision to reduce output...cude -2.2% @ $74.09/bbl..OPEC Meeting today...Cons. discr. leaded after few names reported earlier...AAPL -0.86% ...Volume were ahead of average @ 830mil shares...VIX @ 12.25 -2.93%...US After Hours BLOX +7.8%, VEEV +7.2%, VNET -14.0%, CTRP -5.6%, TIVO -2.0%, HPQ -1.3% following earnings/guidance...Asian indices were bid up in the wake of new highs on Wall St, as investors cheered both the much better than expected US Prelim GDP and renewed easier bias of the PBoC...In Japan, the more dovish BOJ board member Shirai reiterated she would prefer that the time span to reach the 2% inflation target was extended so as not to hurt consumers. Shirai also noted domestic economy does continue a moderate recovery, expecting consumption and CAPEX to improve further...Nikkei -0.14%...Hang Seng +0.27%.
Eur$ 1.2481 S&P +0.16% EuroStoxx +0.56% Dax +0.59% SMI +0.35%
Macro
- China to Remove Retail Price Ceiling on Drugs: Securities News
- CSR, NN Group to Join Stoxx 600; Fugro, Afren to Exit
- EU’s Oettinger Says Google Breakup Won’t Happen on His Watch
Keep an eye on :
- AF FP : Air France Plans Six New Transavia Lines in 2015: La Tribune
- AFR LN : to exit SXXP
- AMS SM : Air France-KLM Enters Hedging Transaction on Half Amadeus Stake
- AMS SM : Deutsche Bank Selling 6.18m Amadeus IT Shrs, 1.4% Stake
- STS IM : Insigma May Ally With Xinzhu on AnsaldoBreda Bid: Corriere
- AV/ LN : Aviva Said to Shut Down U.S. Hedge Fund Arm by Year-End: WSJ
- AZN LN : Amgen/Astra Psoriasis Drug Works in Third Phase 3 Study
- BARC LN : Barclays Wealth Sees Asia Rev Doubling by 2019: Business Times
- BNP FP : BNP Paribas Granted Another Sentencing Delay Until February
- BT/A LN : BT Shareholders Back GBP10b Mobile Acquisition Plan: Telegraph
- AN FP : Canal+ Accord With French Cinema Delayed to 2015: Les Echos
- CGG FP : CGG-Technip merger favoured by French government - Les Echos
- COLR BB : Colruyt 1H EPS EU1.19 Beats Ests. on Parkwind, Lower Tax Bill
- CSR LN : to join SXXP
- AM FP : Dassault Falcon Service to Build Repair Facility in France
- DPW GY : Deutsche Post does not rule out buys; could target start-ups
- OL SM : Ole Bid for Deoleo Shrs Approved by Spanish Market Regulator
- DVR LN : De Vere Sells Village Hotels Chain to KSL for GBP485m: FT
- ENEL IM : Enel Exercises Greenshoe, Sells 30.3m Endesa Shrs at EU13.50/Shr
- ENEL IM : CEO: Seeking savings of €1.6B from maintenance over next two years
- EOAN GY : EON Has 6 Binding Bids for Italy Assets, Boersen-Zeitung Reports
- ESS PL : Espirito Santo Saude 9m Net EU14.2m vs EU9m Y/y
- FLG LN : Friends Life Held Talks With Phoenix in Past Months: City A.M.
- FUR NA : to Exit SXXP
- ICL IS : Israel Corp. Shareholders to Vote on Separation Plan Dec. 31
- ILD FP : Bouygues Files Case Vs Free at Paris Commerce Tribunal: Echos (article sent yesterday)
- KWS GY : KWS Saat 1Q Sales Rise 8%, Net Loss Widens; Adjusts Sales Target
- LHA GY : Lufthansa Rival Volga-Dnepr to Expand German Cargo Network
- MAIL LI : Qiwi Buys Money.Mail.Ru From Mail.Ru; Deal Terms Not Disclosed
- MS IM : Mediaset Says No Specific Interest for Internet Co. Tiscali
- ODL NO : Odfjell Drilling 3Q Ebitda $84m vs $103m
- ONTEX BB : Ontex 3Q Adj Ebitda Up 8.6% to EU49.0m; Rev. up 5% to EU398.4m
- PTC PL : PT Portugal: CTT could take 20% stake in Bain Capital-Apax Partners consortium - Diario Economico
- SMDR LN : Sona Executives to Meet Salamander Next Week on Thai Deal: NST
- HO FP : Thales to Name Logak as Interim CEO, Les Echos Says
- THULE SS : Thule Sets IPO Price at SEK70; Trading Starts in Stockholm Today
- UBSN VX : UBS Says 90.4% of Shares Tendered in Swap for UBS Group AG
- ZAL GY : Zalando 3Q Ebit, Net Loss Narrows, Sees Profit in 2014
>>> Up
*BURBERRY GROUP RAISED TO BUY VS NEUTRAL AT NOMURA
*COLRUYT RAISED TO NEUTRAL VS UNDERWEIGHT AT JPMORGAN
*DE LA RUE RAISED TO NEUTRAL VS UNDERWIGHT AT JPMORGAN
*DSM RAISED TO ‘BUY,’ ADDED TO CONVICTION LIST AT GOLDMAN
*HUGO BOSS RAISED TO NEUTRAL VS REDUCE AT NOMURA
*LUXOTTICA RAISED TO BUY VS NEUTRAL AT NOMURA, PT EU47.50
*MORGAN SINDALL RAISED TO BUY VS HOLD AT LIBERUM
*SAGE GROUP RAISED TO ADD VS HOLD AT NUMIS
*TMK RAISED TO EQUALWEIGHT VS UNDERWEIGHT AT MORGAN STANLEY
*UNICREDIT RAISED TO SECTOR PERFORM VS UNDERPERFORM AT RBC
*ZOOPLA RAISED TO ‘BUY’ FROM ‘NEUTRAL’ AT GOLDMAN
>>> Down
*BARRATT CUT TO ‘NEUTRAL’ FROM ‘BUY’ AT GOLDMAN
*BUZZI UNICEM CUT TO NEUTRAL VS OVERWEIGHT AT HSBC
*HOLCIM CUT TO UNDERWEIGHT VS NEUTRAL AT HSBC
*LAFARGE CUT TO UNDERWEIGHT VS OVERWEIGHT AT HSBC
*LVMH CUT TO NEUTRAL VS BUY AT NOMURA
*RENEW HOLDINGS CUT TO ADD VS BUY AT NUMIS
*TESSENDERLO PT CUT TO EU20 FROM EU22 AT ING
>>> PT Change
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>>> Initiation
*BAE SYSTEMS RATED NEW EQUALWEIGHT AT MORGAN STANLEY, PT 515P
*ENDESA RESUMED AT ‘NEUTRAL’ BY GOLDMAN; 12-MO. PT EU17.60
*MARKS & SPENCER RATED NEW OVERWEIGHT AT JPMORGAN, PT GBP550
*NEXT RATED NEW NEUTRAL AT JPMORGAN , PT 7,100P (EARLIER)
*ROLLS ROYCE RATED NEW OVERWEIGHT AT MORGAN STANLEY
>>> Call
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Technip-CGG favorable state the principle of marriage
Governments call for dialogue between Technip and CGG to constitute a national champion.
The judge, however, state the supply of Technip unsatisfactory at this stage.
The state considers a benevolent eye more than the principle of a rapprochement between the oil services Technip and CGG. While the first specialist production equipment, announced last week it had approached the second, present in the seismic basement, "the idea of a consolidation between two French players in oil services, with complementary activities is now well regarded by the authorities, "says the" echoes "a source close to the state. "The government tends to favor the creation of national champions: create a large French oil services group is a rather appealing idea," says a close case.
A caring attitude however is not carte blanche for the leaders of Technip, whose approach was strongly rejected by the Board of Directors of CGG ("Les Echos" from November 21). The state is in fact in the position of arbiter, since it is the largest shareholder of both groups through public structures.
Bpifrance and IFP Energies nouvelles together hold 14.3% of Technip's voting rights and 19% of CGG voting rights. But at this stage, the preliminary offer Technip is not satisfactory - including the state. "We want a real dialogue is established between the two companies so that they are all acceptable scheme" continues to be within government.
The CEO of Technip Pilenko, knows seismic for leading Veritas prior to its acquisition by CGG in 2007. He was maturing the idea of marriage for several months, and had discussed with his board. He informed the representatives of the State before approaching CGG, "not to seek support, but above all to avoid any surprises," said one of his relatives.
An unconvincing project
The offer made on 10 November, when the sector is experiencing a cyclical trough, however, was not well received. Particularly because the transaction has few industrial synergies. Technip said they needed CGG technology to better understand the reservoirs of the field on which he works - without really convincing. "The argument does not seem enough to give meaning to the operation," says the source close to the state. "And if it is just to buy cheap assets to sell some, this is not acceptable." The project to dispose of the data acquisition business, which employs 500 people in France and has 13 ships, is poorly perceived.
While the authorities call the two companies to enter into discussions, the situation appears today at a standstill . Technip confirms wanted "a constructive and confidential dialogue" while, CGG hand, it says that "nothing has changed, we are waiting."
Les pouvoirs publics appellent au dialogue entre Technip et CGG pour constituer un champion national.
L'Etat juge toutefois l'offre de Technip non satisfaisante à ce stade.
L'Etat considère d'un oeil plus que bienveillant le principe d'un rapprochement entre les parapétroliers Technip et CGG. Alors que le premier, spécialiste des équipements de production, a annoncé la semaine dernière avoir approché le second, présent dans les études sismiques du sous-sol, « l'idée d'une consolidation entre deux acteurs français des services parapétroliers, aux activités complémentaires, est aujourd'hui bien considérée par les pouvoirs publics », indique aux « Echos » une source proche de l'Etat. « Le gouvernement est plutôt favorable à la constitution de champions nationaux : créer un grand groupe parapétrolier français est une idée plutôt séduisante », note un proche du dossier.
Une attitude bienveillante qui ne vaut toutefois pas blanc-seing pour les dirigeants de Technip, dont l'approche a été vivement repoussée par le conseil d'administration de CGG (« Les Echos » du 21 novembre). L'Etat se trouve de fait en position d'arbitre, puisqu'il est le premier actionnaire des deux groupes via des structures publiques.
Bpifrance et IFP Energies nouvelles détiennent ensemble 14,3 % des droits de vote de Technip et 19 % des droits de vote de CGG. Or à ce stade, l'offre préliminaire de Technip n'est pas jugée satisfaisante - y compris par l'Etat. « Nous souhaitons qu'un vrai dialogue s'établisse entre les deux sociétés, afin qu'elles trouvent ensemble un schéma acceptable », poursuit-on au sein des pouvoirs publics.
Le PDG de Technip, Thierry Pilenko, connaît bien la sismique pour avoir dirigé Veritas avant son rachat par CGG en 2007. Il mûrissait l'idée d'un mariage depuis plusieurs mois, et l'avait évoquée auprès de son conseil d'administration. Il a informé les représentants de l'Etat avant d'approcher CGG, « non pas pour chercher un soutien, mais avant tout pour éviter toute surprise », indique l'un de ses proches.
Un projet peu convaincant
L'offre formulée le 10 novembre, au moment où le secteur connaît un creux de cycle, a toutefois été mal accueillie. Notamment parce que l'opération présente peu de synergies industrielles. Technip dit avoir besoin de la technologie de CGG pour mieux connaître les réservoirs des champs sur lesquels il travaille - sans réellement convaincre. « L'argument ne semble pas suffisant pour donner du sens à l'opération », souligne la source proche de l'Etat. « Et s'il s'agit simplement d'acheter un actif pas cher pour en revendre une partie, cela n'est pas acceptable. » Le projet de céder l'activité d'acquisition de données, qui emploie 500 personnes en France et compte 13 navires, reste mal perçu.
Alors que les pouvoirs publics appellent les deux sociétés à entamer des discussions, la situation semble, aujourd'hui, au point mort. Technip confirme souhaiter « un dialogue constructif et confidentiel », tandis que, côté CGG, on affirme que « rien n'a bougé, nous attendons ».
CGG-Technip merger favoured by French government
The French government is understood to be in favour of a merger between listed French oil exploration specialist CGG and French listed infrastructure and platforms specialist Technip, French daily Les Echos reported.
The report cited a source familiar with the matter as saying that the French government is supporting the creation of a France-bases champion operating in the oil sector. The report noted that the French government, via its Bpifrance and IFP agencies, is the main shareholder in both companies with 19% of the voting rights in CGG and 14.3% of the voting rights in Technip.
However, government insiders described as playing the role of “referee” are claiming that a real dialog has to take place between the two companies to find an “acceptable” outcome. Another source close to Thierry Pilenko, head of Technip, confirmed that members of the government were told of Technip’s interest in CGG before the approach was officially made.
The report went on to say that the government is still having doubts about the EUR 1.47bn offer from Technip, which could include CGG’s acquisitions business, which operates 13 vessels and 500 employees.
According to the report, discussion between the parties are now on hold as a source at CGG confirmed that the company was in a waiting stance at the moment and that nothing has taken place since the approach was made.
Source Les Echos
Twitter has discussed acquisition of Shots
Twitter, Inc. (NYSE: TWTR) has considered acquiring San Francisco, California-based Shots, CNBC reported.
Shots, an app where users post and share "selfie" photos, has raised USD 2.7m to date from investors including Floyd Mayweather and Justin Bieber. The company was founded by brothers John and Sam Shahidi. As of last month, Shots had 3 million users, 73% of which are "active users," according to re/code.
The CNBC report cited a source close to Shots for the information.
As reported, Twitter CFO Anthony Noto inadvertently tweeted his support for an acquisition earlier today (Tuesday), in a tweet apparently intended as a private message. The company Noto was referring to is not known, and the CNBC report does not claim that it is Shots.
CNBC
Rio Tinto merger partner Glencore could win Chianlco's support by divesting Oyu Tolgoi and Simandou assets
Glencore would likely seek the support of Rio Tinto’s largest shareholder Chinalco in a renewed merger effort by promising to sell the key Oyu Tolgoi and Simandou assets, the Australian Financial Review reported.
The report said that Paul Gait, a senior analyst at Bernstein, believes Glencore is likely to make a new attempt to merge with Rio Tinto, the Anglo Australian-listed miner.
Gait said Glencore’s recent announcement that it would shut down its Australian coal operations for three weeks is a strong indicator it will make a new approach to Rio. Gait said that the move, showing a willingness to pull tonnes out of a market, represents a direct challenge to Rio’s expansion strategy.
Glencore’s chief executive, Ivan Glasenberg, has frequently spoken against the expansion strategies of Rio and other miners and their price impact, the report said.
Gait said Glencore would likely retain listings in London and Australia for the merged entity. Retaining an ASX listing would help pitch the deal to Australia’s Foreign Investment Review Board, which could be a major obstacle to a deal.
Gait said that a merger is likely to start as an all-scrip zero-premium merger of equals, and Glencore will not pay a premium higher than 10% to 20%.
The report also said Gait believes that winning the support of Rio’s large Chinese investors would be crucial to a deal. In order to appease Chinese investors Glencore could offer to give Chinalco Rio’s stakes in the Oyu Tolgoi project in Mongolia and Guinea’s Simandou.
Source Australian Financial Review
Duerr and HOMAG prepare domination and potential profit and loss transfer agreement
Dürr and the HOMAG Group are preparing to enter into a domination agreement that may be augmented by a profit and loss transfer agreement. In response to a shared petition by both companies, the Regional Court of Stuttgart has now appointed the auditing firm Warth & Klein Grant Thornton to review the agreement.
The agreement planned to be entered into by both companies is intended to integrate HOMAG Group AG as part of a contract-based group, with Dürr AG as the controlling company, and to simplify cooperation between Dürr and the HOMAG Group. In mid-October, Dürr acquired 55.9% of the shares in HOMAG Group AG. The HOMAG Group is the world’s leading manufacturer of machinery and equipment for the woodworking industry and cabinet makers.
Among other things, Warth & Klein Grant Thornton will assess the appropriateness of the planned cash compensation offer as well as the planned guarantee dividend or compensation payment provided for external shareholders of HOMAG Group AG. The basis for these amounts will be a valuation appraisal of the HOMAG Group´s enterprise value. This appraisal was commissioned by Dürr and the HOMAG Group and is currently being prepared.
The domination agreement and (possibly) the profit and loss transfer agreement are to be presented for approval at the annual general meeting of HOMAG Group AG in the spring of 2015. In the process, Dürr can rely on a total of 77.9% of the voting rights as the company has joined the share pool of the Schuler/Klessmann group of shareholders by contributing 3% of its shares. This group of shareholders comprises the HOMAG founding family (headed by Gerhard Schuler) and the Klessmann foundation; the group itself has a 22.1% share of the voting rights. The group of shareholders has committed itself to entering into a domination agreement with Dürr, and possibly into a profit and loss transfer agreement. The share pool accounts for a total of 25.1% of the share capital.