(BFW) BT Weighs EU14b Stock-Cash Bid for Telefonica’s O2: Confidencial

BT Weighs EU14b Stock-Cash Bid for Telefonica’s O2: Confidencial
2014-11-25 09:07:47.448 GMT


By Katie Linsell
Nov. 25 (Bloomberg) -- U.K. telecommunications co.
considers potential shares-plus-cash bid for O2 unit of Spanish
phone co., El Confidencial reports, citing unidentified people.
* Telefonica would receive ~EU6b in cash and 20% stake in BT
for O2: El Confidencial
* No certainty deal will be done, as BT also holding talks
with EE: El Confidencial
* Dan Thomas, spokesman for BT, declined to comment today on
the report

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To contact the reporter on this story:
Katie Linsell in Madrid at +34-91-700-9631 or
klinsell@bloomberg.net
To contact the editor responsible for this story:
Shelley Smith at +44-20-3525-2020 or
ssmith118@bloomberg.net

(Exane) Pharma - Large Pharma Report, one of nest performing sector, more to com

EU Pharma has been the best performing sector in the EU market YTD (+17%). We continue to see upside in 2015 but believe stock selection is crucial. We see three categories of companies in the EU Large Pharma sector, each offering quality, transformation (margin and/or pipeline) and/or value. 


Rating Target price Upside/Downside
AstraZeneca OUTPERFORM 5500p +15%
Bayer NEUTRAL €116 +2%
GlaxoSmithKline UNDERPERFORM 1330p -10%
Novartis OUTPERFORM CHF 105 +15%
Novo Nordisk NEUTRAL DKK 270 +2%
Roche OUTPERFORM CHF 335 +16%
Sanofi OUTPERFORM €86 +13%



* Roche: Outperform, TP CHF 335, +16% upside
Top of the table
Our Exane Pharma Champions League analysis puts Roche at the ‘Top of the Table’.
We believe Roche offers the best quality in Pharma capabilities as reflected in our
FIND IT, BUILD IT and SELL IT scores. This is borne out by Roche’s stable cash flows,
attractive long-term valuation and lower earnings volatility. Roche offers 10% pa EPS
growth (2014-18) vs sector average 11% pa but with less volatility around achieving
those earnings (Figure 4). The stock trades broadly in-line with peers on 19.0x 2015
EPS vs 19.7x average but looks attractive on EV/NPV of 0.89x vs sector 0.96x. We
recommend Roche as a core, quality Pharma holding at an attractive valuation today


see reports attached

(BFW) SABMiller May Have Soft Drinks M&A Opportunities, Bernstein Says

SABMiller May Have Soft Drinks M&A Opportunities, Bernstein Says
2014-11-25 08:39:36.698 GMT


By Heather Burke
Nov. 25 (Bloomberg) -- SABMiller may find attractive
acquisition opportunities in soft drinks, especially in Africa,
Bernstein says in note.
* Bernstein: Soft drinks becoming more important part of
SABMiller’s business (21% of vols. in FY14 vs 17% in FY09),
organic growth is faster than beer
* Beer acquisitions are “few and expensive,” soft drinks
mkt still has possible areas to consolidate
* Africa is obvious place to look at soft drinks M&A, co.
present in 21 countries
* Coca-Cola SABCO stands out as possible M&A target due to
its group of countries; is No. 2 Coca-Cola bottler in S.
Africa, has bigger African exposure, sees deal
enterprise value ~$3b
* 2 other bottlers in S. Africa: PenBev, Coca Cola
Shanduka Beverages
* Equatorial Coca-Cola Bottling Company (ECCBC) operates
in 12 countries in West and North Africa
* Coca-Cola Hellenic’s business in Nigeria would be other
“big prize” in Africa
* None of the cos. discussed have announced or commented
on any plans for M&A
* May make sense for Coca-Cola to broaden ties with
SABMiller to consolidate in Africa, especially if it got
a stake
* May make sense for Coca-Cola to broaden ties with
SABMiller to consolidate in Africa, especially if it got
a stake</li></ul>
* NOTE: 1H lager organic vols. fell 1%, soft drinks rose 9%,
SABMiller said Nov. 13
* NOTE Nov. 17: SABMiller May Announce a Soft Drinks Deal
Soon, Citi Says
* NOTE Nov. 12: SABMiller, Coca-Cola to Form New Company in
Africa: Sky News


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

To contact the reporter on this story:
Heather Burke in London at +44-20-7673-2044 or
hburke2@bloomberg.net
To contact the editor responsible for this story:
James Ludden at +44-20-7673-2645 or
jludden@bloomberg.net

>>> MSCI November 2014 Semi Annual Index Review – European Highlights

MSCI November 2014 Semi Annual Index Review – European Highlights (from JPM)

Two-way turnover (Buy+Sell Trade) $4.372bn with net buy of $236m. 8 Adds / 4 Deletes.
Performance since announcement sees a +2.03% performance on the Buy-Sell trade, and +1.92% on the Add-Delete trade.

Projected Net Indexer Trade for Adds & Deletes below.

Adds
ANN GY, 2728.56% ADV, $303.9m
SY1 GY, 1140.79% ADV, $306.2m
ISS DC, 1384.91% ADV, $114.4m
BKT SQ, 411.84% ADV, $233.8m
AHT LN, 796.88% ADV, $376.4m
MERL LN, 1801.29% ADV, $126.6m
NN NA, 2434.38% ADV, $156.8m
ICA SS, 802.57% ADV, $138.1m

Deletes
HOT GY, -580.86% ADV, -$67.9m
ASC LN, -149.95% ADV, -$101.1m
FUR NA, -70.56% ADV, -$41.1m
AKSO NO, -523%, -$40.7m

WSJ : BoJ Governor defends easing Measures

TOKYO—Bank of Japan Gov. Haruhiko Kuroda on Tuesday defended the central bank’s decision last month to boost its stimulus measures despite a split vote, saying the central bank needed to show its strong resolve to beat deflation.

In a speech to business leaders in Nagoya, central Japan, Mr. Kuroda even said he is willing to “continue” to act to ensure that the central bank will achieve its 2% inflation target by around next year.

Earlier in the day, the central bank released the summary of its Oct. 31 policy board meeting, where the proposal to implement additional easing measures passed by a thin 5-4 vote.

The minutes showed a sharp divide between Mr. Kuroda and some other board members over the effects of the new steps. Some members warned that the cost of the measures outweigh their benefits and questioned Mr. Kuroda’s fundamental strategy to boost inflation expectations through the expanded easing.

But Mr. Kuroda said the BOJ’s commitment to its price target is one of the “two engines” that influence such expectations. The other is the actual inflation rate, which is now around 1%.

“Therefore, the bank has considered it necessary to pursue monetary easing (more aggressively)…as well as to reiterate its unwavering resolution” to achieve its 2% price target, Mr. Kuroda said.

Shrugging off speculation that a divisive board could make it hard for him to ramp up further easing measures, Mr. Kuroda said there is no change in his stance to adjust policy “without hesitation” to make 2% inflation take hold if needed. “To achieve the price stability target, the bank has been taking ‘action’ and will continue to do so,” he said.

In addition to a split board, Mr. Kuroda is faced with falling public support for his policy. A recent public poll conducted by the Nikkei shows that one in two Japanese voters disapproves of Prime Minister Shinzo Abe ’s policy package, known as Abenomics, one main plank of which is the BOJ easing. Small firms and households are struggling with a combination of inflation, fueled partly by a weak yen brought on by the BOJ, and slower wage growth.

During a question-and-answer session following Mr. Kuroda’s speech, local business leaders told him that the yen’s rapid weakening has dealt a blow to small firms in the region by pushing up the costs of materials and other imports. “Please stay alert so the yen won’t become excessively weak,” one of the attendees said.

But while Mr. Kuroda promised to keep a close watch on exchange rates, he stopped short of issuing any verbal warnings to the market. He emphasized that some companies are starting to increase domestic investment. He also said that Nagoya’s economy, known as a major manufacturing hub in Japan, “tends to feel the benefits of a weak yen more easily” than other regions.

With more wage growth seen as essential in spurring higher inflation, Mr. Kuroda used the opportunity to urge business leaders to do their part.

“As a corporate strategy, using…profits in a more productive manner is imperative,” Mr. Kuroda said, adding that he will take great interest in labor-management wage negotiations in the spring of next year.

Separately, Mr. Kuroda expressed support for the recent move by China’s central bank to cut interest rates, saying it was “natural” and “sensible” considering decelerating inflation in the mainland. But he added that while China’s economy will likely expand at a rate of above 7% this year and next, such strong growth won’t last forever.

“Gradually the growth rate will decline from 7% to 6% and from there to 5% as the economy matures,” Mr. Kuroda said.

(La Tribune) CEO of Thales second postponement of the Board (English & french)

A board of directors of the electronic group would eventually meet Thursday morning to approve or not an agreement between the state and Dassault on the estate of Jean-Bernard Lévy.

The Thales employees still wait a little bit ... The Board of Directors, which was originally scheduled on Monday and Wednesday to ratify an agreement between the State and Dassault Aviation on the appointment of the next CEO of the electronics group, was shifted to Thursday morning, according to our information. A new date to reflect the agendas of all directors. If an agreement was not reached by then, the General Secretary Philip could Logak the interim.

Originally scheduled Monday board meeting had to be postponed. The successive statutory president of Dassault, Charles Edelstenne, right arm Serge Dassault and the most influential man of the house Dassault, did not return until Sunday Cuba where he had taken some vacation days, according to several sources. A way of saying to the State Dassault remained master of the calendar. Especially since the manufacturer has very little taste to learn through the press the appointment of Jean-Bernard Lévy the EDF head by the state.

Change in governance?
Employees are not the only ones waiting. The three candidates - both internally and externally - will also have to wait. Internally, the Breton Pierre-Eric Pommellet (50 years), Deputy Director General in charge of defense mission systems would be the favorite of Dassault Aviation. For his part, Patrice Caine (44), now the de facto No. 2 group as General Manager in charge of operations and performance, would have the support of the State and Jean-Bernard Lévy. Finally, the external candidate could come from Alstom. As well as Jean-Bernard Lévy Association shareholder of Thales staff (APAT) have passed many messages for an internal candidate is appointed. To be continued ..

According to Reuters, Jean-Bernard Lévy will be replaced by a tandem consisting of a non-executive chairman selected externally and a CEO selected internally. In 2012, the estate of Luc Vigneron, pushed out of internal discontent background Thales had already led to heated discussions between the government and Dassault Aviation, ending just before Christmas consensus, with the choice Jean-Bernard Lévy, who had just left Vivendi six months earlier.



ORIGINAL IN FRENCH

PDG de Thales : deuxième report du conseil d'administration

Un conseil d'administration du groupe électronique devrait finalement se réunir jeudi matin pour entériner ou pas un accord entre l'Etat et Dassault sur la succession de Jean-Bernard Lévy.

Les salariés de Thales attendront encore un petit peu... Le conseil d'administration, qui devait initialement se tenir ce lundi puis mercredi pour entériner un accord entre l'Etat et Dassault Aviation sur la nomination du futur PDG du groupe électronique, aurait été décalé à jeudi matin, selon nos informations. Une nouvelle date pour tenir compte des agendas de tous les administrateurs. Si un accord n'était pas trouvé d'ici là, le secrétaire général Philippe Logak pourrait assurer l'intérim.

Initialement prévu lundi, la réunion du conseil a dû être reportée. Le président statutaire successif de Dassault, Charles Edelstenne, le bras droit de Serge Dassault et l'homme le plus influent de la maison Dassault, n'est rentré que dimanche de Cuba où il avait pris quelques jours de vacances, selon des sources concordantes. Une manière de dire à l'Etat que Dassault restait maître du calendrier. D'autant que l'avionneur a très peu goûté d'apprendre par la presse la nomination de Jean-Bernard Lévy à la tête de EDF par l'Etat.

Changement de gouvernance?
Les salariés ne sont pas les seuls à attendre. Les trois candidats - deux en interne et un en externe - devront également patienter. En interne, le Breton Pierre-Eric Pommellet (50 ans), directeur général adjoint en charge des systèmes de mission de défense serait le favori de Dassault Aviation. De son côté, Patrice Caine (44 ans), aujourd'hui numéro 2 de facto du groupe en tant que directeur général, en charge des opérations et de la performance, aurait le soutien de l'Etat et de Jean-Bernard Lévy. Enfin, le candidat externe pourrait venir d'Alstom. Aussi bien Jean-Bernard Lévy que l'Association du personnel actionnaire de Thales (APAT) ont fait passer de nombreux messages pour qu'un candidat interne soit nommé. A suivre..

Selon l'agence Reuters, Jean-Bernard Lévy sera remplacé par un tandem constitué d'un président non exécutif choisi en externe et d'un directeur général sélectionné en interne. En 2012, la succession de Luc Vigneron, poussé vers la sortie sur fond de grogne interne chez Thales, avait déjà donné lieu à d'âpres discussions entre l'Etat et Dassault Aviation, pour aboutir juste avant Noël à un consensus, avec le choix de Jean-Bernard Lévy, qui venait de quitter Vivendi six mois plus tôt.

>>> What to look at today - 25th of Nov. 2014

US Market Closed slightly higher with Tech (Nasdaq+0.89%) & Small Caps Outperforming (Russell +1.2%), PBoC cut on Friday continue to help the sentiment, more hopes of European QE is also a strong catalyst...even if german officials continue to pour cold water on that...Volume were light ahead of black Friday with only 580mil shares traded...VIX @ 12.62 -2.17%...Ferguson Grand jury decision could weight on sentiment ahead of Holidays season...BOJ Meeting minutes showed that decision to extend QE to ¥80T from ¥60-70T was already a near even 5-4 split, minutes also revealed that several policymakers also feared some of the "side effects" of more easing, and that they expressed some doubt over the impact of such a move, Cabinet office lowered its view on the employment, 1st in 2y...In China, PBoC's latest easing move on Friday has been supplemented by additional liquidity injection, China Oct Conference Board Leading Index rose for the 7th consecutive month, but resident economist noted reductions in consumer expectations, adding the Coincident Economic Index (CEI) registered zero growth for the first time since January 2014......Nikkei +0.29% Hang Seng -0.08% Shanghai +1.32%

Eur$ 1.2428 S&P -0.07% EuroStoxx +0.22% Dax +0.29% SMI +0.15%

Macro :
- EU Said Not to Formally Seek France, Italy Budget Cuts: WSJ
- ECB Noyer: Must Be Prepared to Do More If ‘Our Goal’ Endangered

Keep an eye on:
- ABI BB : JPMorgan reiterates Overweight rating, price target raised to €106 from €93 
- BKIA SM : Bankia Sees 2014 Profit of EU800m-EU900m, Europa Press Reports
- BAYN GY : Bayer Said to Weigh Sale of Diabetes Business in Strategy Shift
- BAYN GY : Zoetis Climbs to Session High; Bayer Interested
- CA FP : Carrefour to Open 1st China Convenience Store This Week: Paper
- DRI GY : Drillisch to Sell 5.19m Treasury Shares
- EOAN GY : Eon Italia does not attract bid from Enel - Il Corriere della Sera
- INGA NA : ING to Cut 1,700 Jobs in Netherlands in Three-Year Period
- LUN DC : Lundbeck CEO Ulf Wiinberg resigns with immediate effect
- LUX IM : Luxottica founder boosts stake in Delfin to 25% - Il Sole 24 Ore
- MEO3 GY : Haniel may make buys from start of year; interested in high-quality assets in services, high-tech
- NOVN VX : Novartis Says FDA Extends Priority Review Period for LBH589
- PAH3 GY : Porsche Hanover Court Ruling Canceled on Elliot’s Request
- PTC PL : PT Portugal: Bain and Apax secure funding for EUR 7.075bn bid and mandate financial advisors - Diario Economico, Jornal de Negocios
- RIO LN : Glencore-Rio Merger Will Happen, Banker Hannam Tells Hedge Funds
- SAL IM : Salini Impregilo Wins EU260m Hydropower Contract in Turkey
- SMDR LN : Salamander Should Seek Its Shareholders Approval as Agreed: Sona
- SAN FP : Olivier Bohuon Favored as Head of Sanofi, Le Figaro Reports
- SN/ LN : Stryker discussing financing for USD 16bn bid for Smith & Nephew
- SYNN VX : Syngenta’s Maeder Says Keeping M&A Options Open: Basler Zeitung
- HO FP : Board Meeting to named new CEO reported for a second time - La Tribune
- O2D GY : Telefonica’s German Job Cuts Slower Than Seen: Rheinische Post
- TKA AV : Telekom Austria Successfully Completes Capital Increase
- ZC FP : Zodiac Says Higher Production Costs to Affect First Half
- ZTS US : Zoetis Climbs to Session High; Bayer Interested