(BFW) *CASCADE, GATES DISAGREE W/ TAKEOVER BOARD ON SAINT-GOBAIN/SIKA

BFW 04/02 05:55 *CASCADE, GATES DISAGREE W/ TAKEOVER BOARD ON SAINT-GOBAIN/SIKA
BN 04/02 05:49 *CASCADE, GATES FOUNDATION PLAN TO APPEAL DECISION TO FINMA
BN 04/02 05:49 *CASCADE, GATES DISAGREE W/ TAKEOVER BOARD ON SAINT-GOBAIN/SIKA
BN 04/02 05:47 *CASCADE, BILL & MELINDA GATES FOUNDATION TO APPEAL SWISS RULING
Cascade Investment, L.L.C. and Bill Melinda Gates Foundation Tr
2015-04-02 05:45:18.803 GMT

News Release

Cascade Investment, L.L.C. and Bill & Melinda Gates Foundation Trust intend to
appeal decision of the Swiss Takeover Board

Kirkland/Seattle, WA - April 2, 2015 - Cascade Investment, L.L.C. and Bill &
Melinda Gates Foundation Trust have reviewed the Swiss Takeover Board decision
on the opting-out provision in Sika's Articles of Incorporation and on
Saint-Gobain's obligation to make a public tender offer for all Sika shares.

Cascade and the Foundation Trust disagree with the Takeover Board's reasoning
and conclusion and intend to appeal the decision to the Swiss Financial Market
Supervisory Authority FINMA.

Contact:

Tolxdorff & Eicher Consulting, Daniel Eicher

Phone +41 44 718 25 25

Email partners@tolxdorffeicher.ch

News Release (PDF)

Provider Channel Contact
Tensid Ltd., Switzerland newsbox.ch Provider/Channel related enquiries
www.tensid.ch www.newsbox.ch marco@tensid.ch
+41 41 763 00 50

-0- Apr/02/2015 05:45 GMT

FT : Greece submits new list of reforms to eurozone


Greece submits new list of reforms to eurozone


Greece on Wednesday submitted a fresh list of economic reforms to eurozone authorities, estimating the measures could raise as much as €6bn this year. It is the cash-strapped government’s most comprehensive effort so far to unlock €7.2bn in bailout funds before it goes bankrupt.
The 26-page document, obtained by the Financial Times, relies on plans to crack down on tax evasion and fraud to raise most of the revenues. These include €875m from audits of offshore bank transfers and €600m from a new lottery scheme aimed at compelling consumers to demand value added tax receipts.

The tenor of talks between Athens and its international bailout inspectors — the European Commission, European Central Bank and International Monetary Fund — has improved in recent days, and Greek officials have expressed hope that they could reach an agreement on the measures as soon as next week.
“The larger purpose of this document is, in the first instance, to unlock short-term financing that will permit the Greek government to meet its immediate obligations,” the document states in a short introduction. “The Hellenic Republic considers itself to be a proud and indefeasible member of the European Union and an irrevocable member of the eurozone.”
The submission comes after a previous effort sent to the inspectors on Friday received a lukewarm reception from eurozone authorities, who said it lacked detail and substance. Talks on the initial submission broke off on Tuesday without agreement and officials said there was little chance of restarting without more co-operation from Athens.
Despite the improved atmosphere, several EU officials said they did not expect a deal before the next scheduled meeting of eurozone finance ministers in Riga on April 24. Some officials remain concerned that Athens does not have sufficient funds to make a €450m payment to the IMF on April 9, but Greek officials insist they can scrape enough together to get by.
The group of 19 eurozone deputy finance ministers discussed the new reforms by phone on Wednesday, but there was little progress. One senior official said that the new submission was still considered insufficient. “I see no chance of any agreement until Riga,” the official said.
Although the submission marks another effort by Athens to meet eurozone concerns, the measures are similar to Friday’s initial effort and fail to address several issues that bailout monitors have insisted on, including an overhaul of the Greek pension system and greater labour market liberalisation.
Indeed, the proposal appears to reverse reforms in several of these areas. The document includes €1.1bn in fresh spending this year, more than half of it reinstating a so-called “13th pension” — an extra month’s pay — for low-income pensioners. The document suggests that change would add €600m this year.
It also would suspend a so-called “zero deficit clause” that would force more cuts to state pensions; the measure would add another €326m this year.
And while the document includes five separate measures under the heading “labour market reforms”, they include a gradual increase in the minimum wage and strengthening collective bargaining — both measures that would tend to undo reforms adopted earlier in the rescue programme.
Still, the document includes concessions to eurozone authorities, particularly in the area of privatisations. Some government ministers from the far left of the governing Syriza party have publicly stated that all privatisation of state assets would come to an end.
However, the latest document says “all existing contracts will be honoured [and] all the procedures that have started are going to continue”. Remaining privatisations would be considered “on a case-by-case basis”, and are projected to bring in €1.5bn this year, down from €2.2bn in the original bailout agreement.
“Seldom has a privatisation programme failed so spectacularly!” the documents states. “The Greek government considers this target unrealistic, as investors’ interest is low, and competition among bidders is weak.”
Despite demands from Athens that it should be allowed to reduce its primary budget surplus target — the amount of revenues minus expenditures when payments on debt interest are not counted — the document says the measures could mean a surplus of as much as 3.9 per cent of economic output, which is above the programme’s current 3 per cent target.

>>> US After Hours : PRGS +1.0%, EDAP -9.7%, SIGM -2.9%, MU -1.

after Hours Summary: PRGS +1.0%, EDAP -9.7%, SIGM -2.9%, MU -1.5%, SPWH -0.3% following earnings/guidance

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings: PRGS +1.0%

Companies trading higher in after hours in reaction to news: RPRX +18.5% (announced that the New Drug Application for its enclomiphene citrate product candidate, formerly known as Androxal, has been accepted by the FDA), TCPI +13.7% (announced that its product validation review is proceeding as expected; filed to delay Form 10-K), KEM +10.7% (purchased IntelliData, a developer of digital solutions; terms not disclosed), 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), RICK +3.9% (announced an agreement to settle in full a New York based federal wage and hour class action case), CNO +2.9% (to replace SLXP in the S&P MidCap 400), RCPT +1.7% (Bloomberg reporting that co has received takeover interest from potential buyers), XON +1.7% (signed a cooperative research and development agreement with the National Cancer Institute for RheoSwitch Controlled IL-12 cancer therapies using T cell receptors derived from peripheral blood), WWE +1.4% (reported that WrestleMania 31 broke records for viewership, attendance, social and digital media engagement and merchandise sales)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings: EDAP -9.7%, SIGM -2.9%, MU -1.5%, SPWH -0.3%

Companies trading lower in after hours in reaction to news: CNAT -4.4% (announced intention to offer shares of its common stock in an underwritten public offering; size not disclosed), ZIOP -2.0% (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), ANET -1.1% (announced CFO Kelyn Brannon will leave the company; Andreas Bechtolsheim will serve as acting CFO), AXTA -1.1% (priced upsized secondary offering of 40 mln shares of common stock at $28 per share

>>> Asian Update

Asian Mid-session Update: Australia Trade Balance in deficit for 11th month; Hong Kong PMI returns to contraction

***Economic Data***
- (AU) AUSTRALIA FEB TRADE BALANCE (AUD): -1.3B V -1.3BE (11th consecutive deficit, biggest deficit in 5 months)
- (AU) AUSTRALIA MAR TD SECURITIES INFLATION M/M: 0.4% V 0.0% PRIOR (11-month high); Y/Y: 1.5% V 1.3% PRIOR
- (AU) AUSTRALIA DEC-FEB JOB VACANCIES Q/Q: 0.8% V 2.6% PRIOR
- (HK) HONG KONG MAR HSBC PMI: 49.6 V 50.7 PRIOR
- (JP) JAPAN MAR MONETARY BASE Y/Y: 35.2% V 36.7% PRIOR; MONETARY BASE END OF PERIOD: ¥295.9T V ¥278.9T PRIOR
- (NZ) NEW ZEALAND MAR ANZ COMMODITY PRICE M/M: 4.6% V 4.2% PRIOR
- (KR) SOUTH KOREA FEB CURRENT ACCOUNT: $6.4B V $6.6B PRIOR

***Index Snapshot (as of 02:30 GMT)***
- Nikkei225 +1.3%, S&P/ASX +0.6%, Kospi +0.3%, Shanghai Composite +0.3%, Hang Seng +0.5%, Jun S&P500 -0.2% at 2,051

***Commodities/Fixed Income***
- Jun gold -0.1% at $1,203/oz, May crude oil flat at $49.57/brl, May copper 0.1% at $2.75/lb
- (CN) PBoC to inject CNY25B in 7-day reverse repos (11th consecutive injection); Injects net CNY5B this week v injected CNY10B prior (2nd week of injection); Offer yield at 3.55%, unchanged
- (JP) Japan investors bought net ¥1.02B in foreign bonds v bought net ¥788B in prior week; Foreign investors sold net ¥35B in Japan stocks v sold net ¥352B in prior week

***Market Focal Points/FX***
- Regional indices are mixed despite more moderate selling on Wall St, where S&P500 joined the Dow to YTD losses, even though key March 11th support levels in both are still holding. Nikkei225 is outperforming with an over 1% rally even though the yen pairs are little changed. Shanghai Composite and the Kospi are up a modest 0.3%.

- AUD/USD was the biggest mover among the dollar majors, falling over 30pips below $0.7580 as Australia trade balance hit its biggest deficit in 5 months. Import growth slowed to 2% and export growth was unchanged at 1%. Shipments of iron ore were little changed and crude oil shipment value actually rose to A$596M v A$553M prior, but coal exports fell sharply to A$3.06B v A$3.33B prior as China regulators reined in the coal industry for its pollutants. Pressure is building for RBA to cut next week, with one survey publishing unanimous forecast by analysts that rates will fall to 2.00% either as of April or May. Late in the session, JPMorgan warned there's a chance Australia will lose its AAA rating because of falling commodity prices if it does not changes its course on the budget.

- In China, PBoC net injection for the week was reduced to CNY5B from CNY10B, but offering yield stayed on hold at 3.55% this week after two straight weeks of lower yield. Some analysts are still calling for fresh easing by the central bank, particularly as markets head into Easter holiday weekend. Also of note, Fitch warned the latest property market stimulus via reduction in downpayment requirements may have limited impact since it will not alleviate excess housing supply. Hong Kong PMI also fell back into contraction as employment continued to decline - sentiment that matched the latest concern over labor in yesterday's China PMIs.

- After yesterday's miss in Japan Tankan manufacturing, today's quarterly Tankan survey on prices saw companies forecast inflation at just 1.4% within a year and 1.6% in 3 years - well below the official 2% target expected to be reached in FY15/16. Recent slowdown was also apparent in the latest Japan Center for Economic Research projections, with Feb GDP estimated at -2.1% m/m, the first decline in 3 months. Recall overnight comments from a ruling party official Yamamoto calling for fresh BOJ easing as soon as this month.

- With the yields on Greek 10-yr bonds rising another 20bps to 11.5% and funds flowing out of the banking system, ECB offered another €700M to local banks in ELA funding. Greek cabinet official also diffused the latest reports of blackmail by Athens, announcing the govt will repay IMF debt due next week and also clarifying the state remains solvent through April.

***Equities***
US equities / ADRs:
- XON: Signs Cooperative Research and Development Agreement (CRADA) with the National Cancer Institute (NCI); +2.4% afterhours
- DENN: Approves $100M increase to share buyback program (10% of market cap); establishes $250M credit facility; +0.3% afterhours
- HLF: Pershing Square: Herbalife operates in violation of China's direct selling and pyramid sales laws; -0.8% afterhours
- MU: Reports Q2 $0.81 v $0.77e, R$4.17B v $4.16Be; Guides Q3 Rev $3.80-4.05B v $4.29Be - earnings slides; -1.3% afterhours

Notable movers by sector:
- Consumer Discretionary: Adastria Holdings 2685.JP +4.0% (raises guidance)
- Financials: QBE Insurance Group QBE.AU +4.3% (to raise dividend; provides update); Shanghai Pudong Development Bank 600000.CN +1.0% (said to plan to acquire a local bank); Country Garden Holdings 2007.HK +5.4% (Ping An Insurance said to have acquired stakes)
- Materials: BC Iron BCI.AU -4.2% (iron ore trades below $50/tonne)
- Industrials: Bradken BKN.AU +10.8% (receives bid); Lend Lease Corp LLC.AU +2.1% (receives project approval); Austal ASB.AU +2.0% (receives orders); BYD 1211.HK +2.9% (President's forecast on 2015 vehicle sales)
- Healthcare: Takeda Pharmaceutical 4502.JP +1.4% (considers to shut down a plant); Nippon Kayaku 4272.JP +2.2% (speculation on FY15/16 results)
- Utilities: Mitsubishi Electric 6503.JP +1.8% (speculation on FY14/15 results)

>>> US Close Dow -0,44% S&P-0,40% Nasdaq-0,42% Russell-0,08%


Closing Market Summary: Bears Best Bulls on April Fools'

The major averages kicked off April with a retreat that sent the S&P 500 lower by 0.4%. The benchmark index settled in-line with the Dow Jones Industrial Average and the Nasdaq Composite, with the latter catching up during the final hour.

Equity indices spent the entire day in the red and could not rally following upbeat economic data from overseas. In fact, S&P 500 futures tumbled nearly 20 points last evening after China reported its first expansionary Manufacturing PMI (50.1; expected 49.7) in three months. Similar to China, most Manufacturing PMI readings from Europe also surpassed estimates with the region-wide reading rising to 52.2 (expected 51.9).

Interestingly, S&P 500 futures rallied off their overnight lows, but could not climb above the spot where the overnight selling commenced. Once the cash session began, the S&P 500 quickly returned into the neighborhood of its overnight low.

The benchmark index managed to erase half of its opening decline, but eight sectors finished the day in negative territory. The heavily-weighted health care sector (-1.2%) was the weakest performer and the only group that lost more than 1.0%. Large cap sector components struggled across the board while high-beta biotech names also lagged. The iShares Nasdaq Biotechnology ETF (IBB 340.08, -3.35) lost 1.0%. Unlike health care, the remaining countercyclical groups outperformed with telecom services (+0.8%) ending in the lead while consumer staples (+0.1%) and utilities (+0.1%) settled near their flat lines.

As for growth-sensitive groups, energy (+0.2%) and materials (+0.1%) eked out slim gains while technology (-0.4%) and industrials (-0.8%) kept the market under pressure.

The energy sector was underpinned by crude oil, which spiked 5.2% to $50.09/bbl after the latest EIA inventory report showed a larger than expected build. In addition, reports of a rig fire in the Gulf of Mexico provided additional support. For its part, the energy sector settled on its low after giving up its opening gain.

Elsewhere, the technology sector was pressured by chipmakers while most large cap components also struggled. The PHLX Semiconductor Index fell 0.6% while Micron (MU 27.13, 0.00) ended flat ahead of its quarterly report.

Also of note, the industrial sector owed its underperformance to transport stocks. The Dow Jones Transportation Average slumped 0.8% with airlines leading the decline after Deutsche Bank downgraded Delta Air Lines (DAL 43.26, -1.70), American Airlines (AAL 50.44, -2.34), and United Continental (UAL 64.01, -3.24).

Unlike equities, Treasuries climbed throughout the morning and spent the afternoon near their highs, sending the 10-yr yield lower by seven basis points to 1.87%.

Today's participation was ahead of recent averages with roughly 780 million shares changing hands at the NYSE floor.

Economic data included ISM Index, Construction Spending, ADP Employment, and MBA Mortgage Index:
  • The ADP National Employment Report revealed that employment in the nonfarm private business sector rose by 189K in March while the consensus expected an increase of 225K 
    • The February reading was revised up to 214,000 from 212,000 
  • The ISM Manufacturing Index declined to 51.5 in March from 52.9 in February while the  consensus expected a decrease to 52.5 
    • Nearly all of the regional manufacturing surveys pointed toward a sharp deceleration in the national manufacturing index so the drop in the ISM Index shouldn't have been much of a surprise 
    • Production levels actually improved, albeit by a very small margin, as the related index increased to 53.8 in March from 53.7 in February 
  • Construction spending declined 0.1% in February after declining a downwardly revised 1.7% (from -1.1%) in January while the consensus expected a decline of 0.3% 
    • The unseasonably harsh winter weather conditions, which were blamed for a significant downturn in new housing starts, had little to no effect on overall construction levels 
      • Total private construction increased 0.2% in February after declining 1.1% in January 
  • The weekly MBA Mortgage Index rose 4.6% to follow last week's 9.5% spike 
Tomorrow, the Challenger Job Cuts report for March will be released at 7:30 ET while Initial Claims (consensus 285K) and the February Trade Balance report (consensus -$42.00 billion) will cross the wires at 8:30 ET. The day's data will be topped off with the Factory Orders report for February (consensus -0.5%).
  • Nasdaq Composite +3.0% YTD 
  • Russell 2000 +4.0% YTD 
  • S&P 500 UNCH YTD 
  • Dow Jones Industrial Average -0.7% YTD

(BN) Receptos Said to Get Takeover Interest Amid Partnership Talks


Receptos Said to Get Takeover Interest Amid Partnership Talks
2015-04-01 19:42:28.955 GMT


By Ed Hammond, Cynthia Koons and Manuel Baigorri
(Bloomberg) -- Receptos Inc., the drugmaker that’s seeking
a development partner for its multiple sclerosis treatment, is
fielding takeover interest from potential buyers, people with
knowledge of the matter said.
Receptos has been seeking a partner to develop ozanimod,
which is a potential treatment for MS as well as inflammatory
bowel disease. The partnership discussions, with as many as ten
companies, led to the takeover interest, the people said.
Receptos is working with an investment bank as it explores
its options, the people said.
The company, with a $5.3 billion market value, still favors
a partnership agreement and no sale is imminent, the people
said. Part of the logic for a potential buyer is that the cost
of partnering would be high, making the additional expense of an
outright acquisition relatively appealing, one person said.
Receptos’s most promising product, a treatment for the most
common form of MS, is in advanced clinical trials. The disease,
which robs patients of muscle coordination and balance, affects
2.3 million people worldwide, according to the National Multiple
Sclerosis Society. Drugs typically have wholesale prices of more
than $50,000 a year.
“We have publicly announced a partnering process, we’re
speaking to a number of partners and that process is continuing
and progressing,” said Graham Cooper, Receptos’s chief
financial officer. “These processes often take as much as nine
to 12 months to finalize.”
Cooper declined to comment on sale speculation.

Ulcerative Colitis

Ozanimod is also being tested as a treatment for ulcerative
colitis and Crohn’s disease, which are gastrointestinal
inflammatory disorders. The drugmaker said in October 2014 that
a mid-stage trial in ulcerative colitis was successful and it
will start a final-stage trial this year. It also has plans for
a mid-stage trial in Crohn’s disease.
A sale of the San Diego-based company would be the latest
in a string of multi-billion dollar deals struck by companies
looking for new drug prospects. Pharmaceutical and biotechnology
companies agreed about $100 billion of takeovers in the first
three months of 2015, data compiled by Bloomberg show, more than
twice the value announced a year before.
Receptos is also developing oral treatments for
eosinophilic esophagitis, an inflammation of the foodpipe.
Founded in 2009, Receptos conducted an initial public
offering in 2013, raising $73 million by selling shares at $14
each. Two of its executives -- Chief Executive Officer Faheem
Hasnain and Chairman William Rastetetter -- previously worked at
Biogen, which makes the multi-billion dollar multiple sclerosis
medicine Tecfidera.

For Related News and Information:
Pharma’s Comeback Deals Keep Drug M&A on Track to Reach Records
Busiest Day for Health-Care Deals Is Set to Spawn More: Real M&A
Top Stories:TOP<GO>

--With assistance from Caroline Chen in San Francisco.

To contact the reporters on this story:
Ed Hammond in New York at +1-212-617-1963 or
ehammond12@bloomberg.net;
Cynthia Koons in New York at +1-212-617-5253 or
ckoons@bloomberg.net;
Manuel Baigorri in London at +44-20-3525-4457 or
mbaigorri@bloomberg.net
To contact the editors responsible for this story:
Mohammed Hadi at +1-212-617-2914 or
mhadi1@bloomberg.net
Elizabeth Fournier

WSJ : Asos’s Top-Line Leaves Problems Beneath


Asos’s Top-Line Leaves Problems Beneath

Asos is back in fashion, but the company may struggle to maintain its style.

Following an excruciating year in which the company reeled from a string of profit warnings and suffered an inferno that destroyed its largest warehouse, the U.K. online fashion retailer is back on track.

Shares in Asos rose 3% on better-than-expected results Wednesday. In particular, group revenues grew by 14%, with the U.K. and the U.S. contributing gains of 27% and 17% gain, respectively. The number of active customers and the number of orders both increased by more than one-tenth, and the average order value rose 7% to £67 ($99).

That is a welcome return to form for the once-feted company. Asos has also been addressing its growing pains. It has had to take costly steps to lower prices and invest in new technology and its distribution network, which until recently was centered in the U.K. Following last year’s fire, the company now delivers about 25% of global orders from its U.S. warehouse and about the same amount from its German hub.

ENLARGE
After a hit last year from pricing its wares in sterling, and translating that price into various currencies around the globe, Asos has also rolled out zonal pricing to stay more competitive locally. International sales accelerated 19% in the six weeks ended March 31 compared with 5% in the previous six-week period, J.P. Morgan estimated.

But while lowering prices overseas is reversing Asos’s slowing sales trend, it is hurting profitability. Operating margins have taken a hit, expected to be about 4% this fiscal year from 7% two years earlier. The company has been able to temper some of the impact by cutting certain operating costs such as marketing, but will need to do more to boost margins.

Competing on price to fuel growth may also leave Asos limited scope to react as more competition enters the fray. Germany’s Zalando is encroaching on Asos’s domestic market by expanding in the U.K. Amazon is also investing more in fashion retail.

Yet the company’s valuation smacks of haute couture. Asos is trading at 75 times forward earnings, or twice its 10-year historical average. Asos has done well in righting last year’s mishaps. But with margins under pressure and competitors circling, investors who have enjoyed the cut of its recovery may now be tempted to click elsewhere.