>>> US Gapping up

Gapping up
In reaction to strong earnings/guidance: KMX +4.5%, PERY +4.3%, LL +2.1%, URBN +1.7%, (Urban Outfitters reports thus far 2016 Q1 comparable Retail segment net sales are mid single-digit positive), MU +1.2%, PRGS +1%, ELTK +0.9%

M&A news: LO +3.1% (moving higher in recent trade following speculation that LO / RAI deal will be approved by FTC), SOPW +2.5% (announces the acquisition of 'Aerojet' solar projects), RAI +2.4% (moving higher in recent trade following speculation that LO / RAI deal will be approved by FTC)

Other news: RPPX +19.1% (announced that the New Drug Application for its enclomiphene citrate product candidate, formerly known as Androxal, has been accepted by the FDA), WBAI +17.1% (attributed to speculation of potential restart of China online lottery), KEM +10.7% (purchased IntelliData, a developer of digital solutions; terms not disclosed), TCPI +10.4% (announces that its product validation review is proceeding as expected; discloses a delay in filing its Form 10-K ), HERO +8.8% (signed a five-year contract with a subsidiary of Eni S.p.A. (E) for use of the Hercules 260 in West Africa), FXCM +6.6% (announces it has repaid an additional $54 mln outstanding under credit agreement with Leucadia (LUK); avoids contingent financing fee of $30 mln), ZN +5.8% (co has closed a venture loan to Education Elements, a services and software solution provider that helps districts and schools develop and implement personalized learning strategies), CNDO +4.6% (forms new subsidiary, DiaVax Biosciences, to develop novel immunotherapies for Cytomegalovirus; DiaVax secures rights to two clinical-stage program), RICK +4% (announced an agreement to settle in full a New York based federal wage and hour class action case), CNO +3.7% (to replace SLXP in the S&P MidCap 400), AN +3.3% (reported retail sales of 77,242 new vehicles in the first quarter of 2015, an increase of 10%), TXMD +3.1% (favorable commentary on Wednesday's Mad Money), OMER+2.9% (announces the nationwide commercial availability of Omidria ), XON +2.4% (Intrexon signs cooperative Research and Development agreement with NCI), MDVN +2.4% (announced topline results from the Phase 2 STRIVE trial comparing enzalutamide with bicalutamide), GENE +2% (ongoing vol pre-mkt; rumor of partnership with JNJ yday), RCPT +1.5% (following late surge highs on M&A speculation), WWE +1.4% (reported that WrestleMania 31 broke records for viewership, attendance, social and digital media engagement and merchandise sales), FRPT +1.3% (favorable commentary on Wednesday's Mad Money), ALK +1.3% (provides March operational results), GZT +1.2% (still checking), HLF +1.2% (Pershing Square issues statement responding to WSJ article about Herbalife in China), ALV +1% (following monthly auto sales), HCA +0.9% (favorable commentary on Wednesday's Mad Money)

Analyst comments: WPT +1.8% (upgraded to Buy from Neutral at BofA/Merrill ), TSLA +1.8% (positive Credit Suisse note), FB +0.7% (target raised to $97 from $91 at Citigroup), DKS +0.5% (upgraded to Positive from Neutral at Susquehanna
)

>>> US Gapping down

Gapping down
In reaction to disappointing earnings/guidance: SEAC -7.5%, EDAP -5.8%, SIGM -2.8%

Select oil/gas related names showing early weakness: RIG -1%, CHK -0.8%, OAS -0.6%, SDRL -0.6%, BP -0.5%

Other news: CNAT -8.7% (to offer shares of its common stock in an underwritten public offering), NBG -4% (cont uncertaintly in Greece), VLTC -4% (modest pullback after yday's advance), RPTP -2.8% (priced 9.5 mln shares of its common stock at $9.00 per share), SHPG -2.5% (Hayman Capital through the entity "Coalition For Affordable Drugs" filed a petition for Inter Parties Review on a patent controlled by Shire), AXTA -1.7% (priced upsized secondary offering of 40 mln shares of common stock at $28 per share), ZIOP -1.5% (disclosed that on April 1, 2015, it filed a prospectus supplement covering the resale of 11,722,163 shares of its common stock that were originally issued to The Board of Regents of the University of Texas System)

Analyst comments: INFN -3.3% (downgraded to Neutral from Buy at Goldman), GRMN -1.8% (downgraded to Neutral from Buy at Goldman), NUVA -1% (downgraded to Underperform from Neutral at BofA/Merrill), COTY -1% (downgraded to Market Perform from Outperform at BMO Capital), SPB -0.8% (downgraded to Market Perform at BMO Capital).

(ZH) China Becomes Global Lender Of Last Resort With Bailout Of World's Most Ind

China Becomes Global Lender Of Last Resort With Bailout Of World's Most Indebted Oil Company

Over the course of last month we variously described the Asian Infrastructure Investment Bank as an attempt by Beijing to deal a decisive blow to the post-World War II global economic order by undermining US-dominated multinational institutions, as an attempt to usher in a new era characterized by yuan hegemony, and as an effort to cement China’s regional influence via the implicit establishment of a sino-Monroe Doctrine.

With that in mind, we find it somewhat ironic that the China Development Bank (which isn’t the same as the AIIB but which we think might offer some clues as the how the new venture will be run under Beijing’s control), is set to provide $3.5 billion in financing to Brazil’s deeply indebted Petrobras. The new funding comes 6 years after a $10 billion oil export deal between the company and China and just days after Brazil signed up as a founding member of the AIIB.

More, via WSJ:

Brazil’s state-run Petroleo Brasileiro SA said on Wednesday it signed a $3.5 billion financing deal with the China Development Bank, highlighting the oil giant’s deteriorating financial condition in the wake of a vast corruption scandal as well as China’s growing ties to Latin America.
Petrobras didn’t provide any details of the deal, which is part of a cooperation agreement to be implemented this year and in 2016. But the transaction deepens the Brazilian government’s relationship with its largest trading partner and fellow BRIC country.
The Asian giant has provided similar assistance to countries like Ecuador, Venezuela and Argentina, helping those countries deal with falling global oil prices and their own debt problems.
“China again is…lending to state-owned companies that cannot access the market,” said Adriano Pires, an energy expert with the Brazilian Center of Infrastructure in Rio de Janeiro.
China has extended more than $100 billion in credit to Latin America since 2005, according to figures from Boston University’s Global Economic Governance Initiative. In January, Chinese President Xi Jinping said China’s foreign investment in Latin America would hit $250 billion over the next decade.
At the risk of extrapolating too much, it appears as though Beijing isn’t opposed to throwing billions behind serving as a lender of last resort and we can’t help but wonder if the new round of Petrobras financing is indicative of where China will steer initial AIIB funding — that is, into oil and Latin America. What’s interesting (and very ironic given how we’ve characterized the AIIB), is that it appears Beijing may look to channel the bank’s lending straight into Washington’s backyard, effectively slighting the original Monroe Doctrine even as China tacitly implements its own take on an official policy of regional influence and control.

Meanwhile, US allies continue to fall in line with France, Italy, and Israel set to jump on the bandwagon. Here’s more via Reuters:

Prime Minister Benjamin Netanyahu has signed a letter of application for Israelto join the China-led Asian Infrastructure Investment Bank (AIIB), the Israeli Foreign Ministry said on Wednesday.
More than 40 countries, including Australia, South Korea, Britain, France, Germany andItaly, have said they would sign up to the AIIB, with Japan and the United States the two notable absentees.
In a statement on its website, the Foreign Ministry said Israel's AIIB membership would open up opportunities to integrate Israeli companies into infrastructure projects it financed.
Israeli companies are increasingly turning to Asia to capture a boom in demand for their technology, as the government urges them to diversify export markets in response to Europe's rising anti-Semitism and potential trade sanctions.
And just like the ADB, the IMF isn’t intent on undermining the new institution. Via Bloomberg:

The Asian Infrastructure Investment Bank is welcomed as long as it commits to cooperation and efficient operations, China Business News cites IMF Managing Director Christine Lagarde in an interview.
AIIB is a wake-up call for countries that don’t agree with IMF’s quota system: Lagarde
China’s IMF quota should match the size of its economy, Lagarde says
Yuan becoming SDR currency is a matter of time: Lagarde says
* * *

We’ll close with the following quote from US Under Secretary Of State for Economic Growth, Energy, and the Environment:

“We hope that the governance of that institution and the environmental impacts are going to be done in way that’s consistent with what other multilateral development banks aredoing. We don’t have any concern, in theory, about the development of an Asian infrastructure bank.”
Average:

(BFW) *VIVENDI INVESTORS SHOULD REJECT PSAM PROPOSALS, ISS RECOMMENDS

BN 04/02 12:44 *VIVENDI HAS DEMONSTRATED PRUDENT REGARD FOR ASSETS, ISS SAYS
BN 04/02 12:44 *PSAM PROPOSALS GIVE TOO LITTLE CREDIT TO VIVENDI MGMT, ISS SAYS
BN 04/02 12:44 *VIVENDI INVESTORS SHOULD REJECT PSAM PROPOSALS, ISS RECOMMENDS
*VIVENDI INVESTORS SHOULD REJECT PSAM PROPOSALS, ISS RECOMMENDS
2015-04-02 12:44:42.73 GMT

--KASPER VIITA

-0- Apr/02/2015 12:44 GMT

(Challenges) SFR and Numericable offices placed under seal

French :
{http://www.challenges.fr/high-tech/20150402.CHA4536/les-bureaux-de-sfr-et-numericable-places-sous-scelles.html}

English :

The Competition Authority has made ​​these placed under seal as part of an investigation sister redemption conditions of the mobile operator Numericable in March 2014.

The Competition Authority has set Thursday, April 2 sealed offices of SFR and Numericable, as part of an investigation into the conditions of redemption of the mobile operator Numericable, is it learned from union sources, an internal message Officer of Numericable, SFR confirming that information.

In a message to employees, sent to AFP, the management of internal communication of Numericable, SFR Group, confirmed the intervention, supported by the CFDT and Unsa, citing "the sealing of some offices" at headquarters.

Questioned by AFP, the Competition Authority has recognized "have conducted business and seizures in the telecom sector," but declined to further comment.

"We are all very surprised"

In his message, the group's management states that "to ensure compliance with SFR purchase conditions by Numericable Group, the Competition Authority is investigating with the DGCCRF" responsible for Fraud .

"As part of this investigation, intervention takes place at the company's headquarters, with the introduction of some offices sealed," the group.

According to Olivier Lelong (CFDT) and a leader of the UNSA, the operation was conducted simultaneously at the headquarters of SFR in Saint-Denis and the Numericable in Champs-sur-Marne (Seine-et-Marne).

"We are all very surprised," said the CFDT responsible.

Altice / Numericable acquired SFR , Vivendi Telecom subsidiary in March 2014 after a duel with Bouygues Telecom.

(FLY) BMRN: BioMarin price target raised to $140 from $123 at BofA/Mer

BMRN: BioMarin price target raised to $140 from $123 at BofA/Mer
2015-04-02 12:20:38.97 GMT

BioMarin price target raised to $140 from $123 at BofA/Merrill
BofA/Merrill said BioMarin (BMRN) is a strong potential takeout candidate given
its diversified, rapidly growing revenue base and robust pipeline. The firm
said Shire (SHPG) is not the only company speculated to have interest in
BioMarin but believes a deal near-term is not likely as any interested acquirer
would wait for the submission of drisapersen and acceptance by the FDA before
making a move. Additionally, BofA/Merrill believes a deal would have to be at a
significant premium, in the $25B range, which limits potential acquirers. The
firm raised BioMarin's price target to $140 from $123 to reflect a lower
weighted cost of capital and maintains its Buy rating.

>>> Cirque du Soleil founder/controlling shareholder could receive bids from two

Cirque du Soleil founder/controlling shareholder could receive bids from two groups headed by private equity firms 

Bidding groups headed by two private equity funds are likely to submit offers in time to meet a Thursday deadline in order to get a controlling stake in Cirque du Soleil, reported The Globe and Mail on its website 1 April.

Unidentified people familiar with the situation said in the report that London, UK-based CVC Capital Partners is heading one group. Also part of the group is Providence, Rhode Island-based Providence Equity Partners. According to the report, a rival offer is expected to come from a group led by Fort Worth, Texas-based TPG. The report noted that TPG's buying group may include a financial investor from overseas that wants to grow Montreal, Quebec-based Cirque's business in South East Asia. Meanwhile, spokespersons at CVC and TPG opted not to comment, and the newspaper was unable to reach a Providence representative.

According to the report, Guy Laliberté, founder and controlling shareholder of Cirque, retained the services of Goldman Sachs late in 2014 to look for a minority investor in the world's largest theatrical producer. However, due to suitor demand, Laliberté has since acknowledged that he is open to selling all but 10% of his 90% stake in the company, according to unnamed sources.

Renée-Claude Ménard, a Cirque spokesperson, said in the report that the "process is still ongoing." She added that Laliberté is still combing over "his options."

Source The Globe and Mail

>>> Shire / Biomarin - last press articles on the last few days...

27/03/2015

Shire could be interested in merging with BioMarin Pharmaceutical; Roche may revisit interest - report

Shire is interested in merging with California-based BioMarin Pharmaceutical, the Betaville blog reported today, citing unnamed top sources.

The blog reported citing unnamed sources that Shire recently approached BioMarin regarding a deal, though it is unclear if there have been any further developments. Lazard and Morgan Stanley are advising Shire and MS has been named as the leader in the financing for the deal.

The sources added that BioMarin is believed to have drafted financial advisers as well, including Centreview Partners or Evercore, to defend it against a larger predator.

Shire might not be the lone suitor interested in the target, as Roche was also reported to have been interested in BioMarin a few years ago, the article reported.

Betaville reported that sources said Roche could revisit it's interest in BioMarin in the wake of Shire's potential interest.

31/03/2015 - Deal Reporter

BioMarin seen as target but valuation obstacles remain, bankers say
Proprietary Intelligence
Story
BioMarin Pharmaceuticals (NASDAQ:BMRN) is seen as a possible takeover target but the company’s steep valuation could make a sale challenging, according to seven industry bankers.

Shares of BioMarin, a maker of drugs to treat rare, or orphan conditions, surged last Friday after Betaville reported that Shire Pharmaceuticals (NASDAQ:SHPG) had recently approached BioMarin about a deal. Roche (VTX:ROG) was also mentioned as a possible bidder.

The stock was trading at USD 125.92 on Tuesday, valuing the company at about USD 20bn, after having risen as much as 15.5% on the back of the report.

A combination between Shire and BioMarin would make sense, as rare disease/orphan drug companies are coveted assets, the first and second bankers said. However, it would be hard to make the math work given where BioMarin currently trades, the first banker noted.

Shire is an active acquirer of companies that make drugs to treat rare conditions, the second banker said, having closed the purchase of NPS Pharmaceuticals for USD 4.96bn in February. This banker added that the Dublin-based company is no stranger to "transformative" deals as evidenced by its acquisition of Transkaryotic Therapies for USD 1.6bn in 2005.

The deal brought Shire, then a much-smaller pharma company whose primary product was ADHD drugs, into a new area of protein-based biotechnology drug research.

“The Transkaryotic deal turned Shire from an old school specialty pharma company into more of a drug development company,” said this banker.

A third banker said Shire has previously looked at BioMarin and apparently “loved it”, but pointed out that it would have been much easier to swallow BioMarin when it was a USD 10bn company. Given its current size, Shire would likely need shareholder approval to pursue a BioMarin acquisition, this banker said.

“[BioMarin] is awfully expensive … this is not NPS that Shire bought for USD 5bn, we are talking a valuation of close to USD 25bn. It is tricky since it [would] not be immediately accretive,” a fourth banker said.

Three of these bankers said BioMarin's management and board would need a huge premium to be convinced to transact. BioMarin would need a strong reason to do a merger as the Novato, California-based company could double its revenues on its own within the next couple of years, the fourth banker said.

The fifth banker, whose firm has represented BioMarin in the past, said a combination could result in some overlap in drugs currently in development, which could undercut the logic of a deal. For instance, both Shire and BioMarin are developing drugs to treat a rare form of multiple sclerosis, with Shire’s MS program mainly acquired with the purchase of NPS.

However, the third banker said that while BioMarin clashes with a couple of Shire’s products on Gaucher’s disease, its products mostly just drop into Shire’s rare disease franchise.

BioMarin, led by industry veteran Jean-Jacques Bienaime, has long been viewed as a takeover candidate, said the fifth and the sixth bankers. “There have been rumors about BioMarin forever,” added the sixth banker.

The company has five approved products and multiple clinical and preclinical product candidates. After factoring in a premium, paying close to USD 25bn for five marketed products is a huge price to pay, even for Shire, the seventh banker commented. He and the third banker said Shire has a big pipeline of its own to develop and it does not necessarily need to pursue a large, high-premium acquisition.

The third banker said Shire CEO Flemming Ornskov would prefer to do a “handful of good deals rather than one big one”, as transformational deals have to contend with personality issues related to top management. Any approach by Shire could also bring other bidders into the race, making the process competitive and driving up the price, the third banker added.

Aside from Shire, Sanofi (NYSE:SNY) could also be interested in acquiring BioMarin, the second and third banker said. Sanofi’s biggest recent purchase in biotechnology-based drugs was that of Genzyme in 2011 for more than USD 20bn. AstraZeneca (LON:AZN) was floated as another possible acquirer, according to three of the bankers.

A spokesperson for BioMarin declined to comment. A Shire representative could not be reached for comment.




Source Betaville