>>> PT Portugal bidders Apax Partners and Bain Capital to present bid on 28 Nove

PT Portugal bidders Apax Partners and Bain Capital to present bid on 28 November

PT Portugal suitors Apax Partners and Bain Capital will make a binding offer for the Portuguese assets of Brazilian telco Oi next week, reported Jornal de Negocios.

Apax and Bain are undertaking due diligence on PT Portugal for their joint offer which will be delivered to Oi on 28 November, the Lusophone business paper reported, citing a source close to the process.

Apax and Bain, which are in the process of finalizing bank financing for their offer, also plan to list PT Portugal, the same sources said. The Apax-Bain bid for PT Portugal values the firm at EUR 7.075bn, compared to the EUR 7.025bn rival offer from Altice.


Source Jornal de Negocios

>>> Asian Update

Asian Market Update: China Flash manufacturing PMI dips to 6-month lows


***Economic Data***
- (CN) CHINA HSBC NOV FLASH MANUFACTURING PMI: 50.0 V 50.2E (6-month low)
- (CN) China ANZ Roy Morgan Nov Consumer Confidence Index: 157.1 v 155.1 prior (21-month high)
- (JP) JAPAN OCT MERCHANDISE TRADE BALANCE: -¥710B V -¥1.03TE; ADJ TRADE BALANCE: -¥978B V -¥1.1TE
- (JP) JAPAN NOV PRELIM MARKIT/JMMA MANUFACTURING PMI: 52.1 V 52.7E (6th consecutive expansion)
- (NZ) NEW ZEALAND Q3 PPI OUTPUT Q/Q: -1.1% V -0.5% PRIOR; PPI INPUT Q/Q: -1.5% V -1.0% PRIOR; Largest decline in 5 years on both measures
- (NZ) NEW ZEALAND OCT ANZ JOB ADS M/M: -0.3% V 2.3% PRIOR; first decline in 3 months

***Index Snapshot (as of 02:30 GMT)***
- Nikkei225 flat, S&P/ASX -0.5%, Kospi -0.6%, Shanghai Composite -0.1%, Hang Seng +0.2%, Dec S&P500 -0.1% at 2,045

***Commodities/Fixed Income***
- Dec gold -1.0% at $1,181, Jan crude oil -0.2% at $74.43/brl, Dec copper flat $3.03/lb
- GLD: SPDR Gold Trust ETF daily holdings fall 2.1 tonnes to 720.9 tonnes
- (CN) PBoC to drain CNY10B in 14-day repos (32nd consecutive drain); Injects net CNY10B this week vs Net zero position prior (first injection after 5 consecutive weeks of neutral position)
- (JP) BOJ offers to buy ¥110B in JGB less than 1-yr, ¥550B in 1-3 yr JGB and ¥550B in 3-5yr JGB
- (JP) Japan investors bought net ¥212.5B in foreign bonds v ¥1.12T in prior week; Foreign investors bought net ¥909.8B in Japan stocks v ¥1.06T in prior week

***Market Focal Points/Key Themes/FX***
- The minutes from the critical FOMC meeting in late October, when the Fed formally ended QE3, only served to reinforce market expectations for the beginning of normalization of policy sometime in the middle of 2015. Treasury yields were lifted higher, USD gained, and gold cracked going into the US close as Fed members remained cognizant of improving labor conditions and stronger economic growth. Fed members were concerned that "measures of inflation compensation had declined somewhat" but also added "longer-term inflation expectations had remained stable." Analysts noted there was little in the minutes deterring the latest projections for interest rates despite the uncertain inflation outlook, with the focus also shifting to Thursday's release of US CPI figures.

- The leading assessment of China economy in November via the HSBC flash manufacturing PMI was not particularly impressive as the index missed estimates to hit a 6-month low of 50.0 - the very threshold of expansion/contraction divide. Among the most notable components, Employment deteriorated at a faster rate, Output turned to expansion from contraction, Export orders increase slowed, while Input price decline receded. HSBC economist noted that disinflationary pressures remain strong, capacity utilization point to insufficient demand in the economy, and more monetary and fiscal easing measures are justified given the "significant downward pressures" on growth. Hong Kong and Shanghai opened lower after the release but reversed initial losses to trade little changed by the time of their afternoon breaks. Shanghai-Hong Kong trading link uptake remained underwhelming, with only 2.4% of the Hong Kong quota taken up by mainland investors on Wednesday.

- Japan manufacturing PMI also slowed, though it remained in expansion for the 6th consecutive month. Markit reported Employment increasing at the same rate and input price increasing at a faster rate - potentially a respite to slowing progress on inflation. Japan trade data were also encouraging, as export growth of 9.6% hit its highest pace in 8 months and imports finally slowing, helped by 8.8% y/y decline in shipments of crude oil. Cabinet Sec Suga maintained that Japan will still be able to meet the FY20 fiscal target even with the tax hike delay constraining govt revenues.

- USD strength retained its momentum in the wake of steady QE-exit sentiment from the Fed minutes, particularly against the vulnerable Japanese yen. 10-year US treasury yields approached 2.35%, helping USD/JPY test 118.50 in the Asian session. AUD/USD marked its lows after the China PMI release, falling over 30pips respectively from session highs below $0.8590.

***Equities***
US markets:
- CZR: Said to be considering adjusting its largest operating unit into a REIT - financial press; +18.1% afterhours
- WSM: Reports Q3 $0.68 v $0.63e, R$1.14B v $1.12Be; +7.5% afterhours
- YHOO: Yahoo and Mozilla Form Strategic Partnership; 5-year deal makes Yahoo the default search on Firefox browser; +1.0% afterhours
- LB: Reports Q3 $0.44 v $0.40e, R$2.32B v $2.32Be; -0.6% afterhours
- GMCR: Reports Q4 $0.90 v $0.78e, R$1.19B v $1.16Be; increases dividend 15% to $1.15 from $1.00; -0.8% afterhours
- CRM: Reports Q3 $0.14 v $0.13e, R$1.38B v $1.37Be; -4.8% afterhours
- JMEI: Reports Q3 $0.14 v $0.14e, R$154.4M v $152Me; -11.8% afterhours
- GPRO: Prices 10.4M shares of common stock at $75.00/shr (approx 7.5% of market cap)

Notable movers by sector:
- Consumer Discretionary: China Southern Airlines 1055.HK +1.0% (invests in general aviation); Huabao International 336.HK +3.9% (H1 results)
- Materials: OZ Minerals OZL.AU +1.3% (reserve update)
- Industrials: McAleese MCD.AU -1.4% (FY15 guidance)
- Healthcare: Sonic Healthcare SHL.AU -5.6% (cuts FY15 guidance)
- Utilities: TEPCO 9501.JP -2.8% (minor earthquake near Fukushima)

>>>US after hours

After Hours Summary: WSM +7.4%, CRMT +7.0%, DWCH -26.0%, HI -12.1%, CRM -4.1%, GMCR -0.7% following earnings/guidance

After Hours Gainers: Companies trading higher in after hours in reaction to earnings: WSM +7.4%, CRMT +7.0%, ATTO +5.9%

Companies trading higher in after hours in reaction to news: CZR +18.2% (co disclosed that in a previously proposal it considered restructuring Caesars Entertainment Operating Company as a REIT), CLD +3.2% (announced termination of $100 mln public offering of mandatory convertible preferred stock), GRPN +1.5% (Director disclosed purchase of 30000 shares, worth total of $232.6K; Nov 17 transaction date), ATVI +1.2% (announced that an agreement has been reached to settle the consolidated derivative and class action shareholder case; multiple insurance companies to pay ATVI $275 mln), YHOO +1.2% (co and Mozilla formed a strategic five-year partnership that makes Yahoo the default search experience for Firefox in the United States on mobile and desktop), PPS +1.1% (announced a new $200 mln stock and note repurchase program)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings: DWCH -26.0%, HI -12.1%, JMEI -10.4%, RGSE -8.5%, SMTC -4.8%, CRM -4.1%, GMCR -0.7%, CCIH -0.5%

Companies trading lower in after hours in reaction to news: LXRX -16.0% (announced proposed common stock offering of $50 mln of shares of its common stock), WD -5.2% (announced the commencement of an underwritten offering of 2 mln shares of its common stock held by funds managed by affiliates of Fortress Investment Group (FIG)), IRT -3.4% (announced a public offering of 6 mln shares of common stock), OKS -1.6% (disclosed $650 mln common unit Equity Distribution Agreement), SPWR -1.2% (disclosed reorganization plan aimed towards improving operating efficiency and cost structure; expects 85-115 employees to be affected; to incur $15-25 mln charge), 

>>> US Close Dow -0,01% S&P -0,15% Nasdaq -0,57% Russell -1,08%

Closing Market Summary: Small Caps Lead Stocks Lower

The major averages ended the midweek session on a lower note with Tuesday's leader—Russell 2000—pacing the retreat. The small-cap index lost 1.1% while the S&P 500 surrendered 0.2% with seven sectors finishing in the red.

The benchmark index slumped at the start due to notable losses among several heavily-weighted sectors. However, the S&P 500 was able to pull away from its late-morning low thanks to relative strength in consumer discretionary (+0.5%), consumer staples (+0.4%), and energy (+0.6%).

Although the trio helped the S&P 500 recover from its low, the index could not complete its comeback as industrials (-0.3%), technology (-0.6%), and health care (-0.5%) weighed. The index was able to briefly kiss the flat line after minutes from the October FOMC meeting crossed the wires, but that move was retraced as the dust settled and it became clear the minutes did not introduce anything new into the discussion. Instead, the minutes reminded investors for the umpteenth time that the central bank intends to remain data-dependent when deciding the appropriate timing for the first rate hike.

Treasuries followed a similar intraday pattern. The 10-yr note spiked to highs immediately after the release, but returned to lows shortly thereafter. As a result, the benchmark 10-yr yield rose four basis points to 2.36%.

As mentioned earlier, only three sectors managed to spend the bulk of the session in the green. Energy (+0.6%) ended in the lead even as crude oil remained volatile during the day. WTI crude ended the pit session lower by 0.2% at $74.48/bbl.

Elsewhere, the two consumer sectors were underpinned by retailers after Staples (SPLS 13.92, +1.16), Target (TGT 72.48, +4.97), and Lowe's (LOW 62.26, +3.73) reported one-cent beats. The three soared between 6.4% and 9.1% while the SPDR S&P Retail ETF (XRT 91.04, +0.67) added 0.7%.

Retail names notwithstanding, finding areas of relative strength proved challenging. The top-weighted technology sector (-0.6%) ended among the laggards due to broad-based losses. Chipmakers settled in-line with the sector as the relative weakness among small caps weighed on sentiment in other high-beta areas.

Also of note, biotechnology tried to resists the pressure, but the iShares Nasdaq Biotechnology ETF (IBB 294.21, -1.04) slipped to lows by the close. The ETF settled lower by 0.4% after being up near 0.6% intraday. As for health care, the top-weighted countercyclical group never took the biotech bait and spent the day near its low.

Participation was in-line with long-term trends with roughly 720 million shares changing hands at the NYSE floor.

Economic data was limited to MBA Mortgage Index and Housing Starts/Building Permits:
  • Housing starts declined 2.8% in October from an upwardly revised 1.038 million (from 1.017 million) to 1.009 million while the consensus pegged the reading at 1.025 million 
    • Since June, housing starts have followed a sawtooth pattern, which has continued with the October decline 
    • Despite the headline miss, single-family construction, which generally follows stable trends, increased 4.2% to 696,000, which was the highest reading since November 2013 
    • Building permits slipped to a seasonally adjusted annualized rate of 1.08 million in October from an unrevised 1.031 million for September, while the consensus expected permits to come in at 1.04 million. 
  • The weekly MBA Mortgage Index jumped 4.9% to follow the previous decline of 0.9% 
Tomorrow, weekly Initial Claims (consensus 285K) and October CPI (expected -0.1%) will be released at 8:30 ET while October Existing Home Sales (consensus 5.17 million), October Leading Indicators (expected 0.6%), and the Philadelphia Fed Survey for November (consensus 18.0) will all be reported at 10:00 ET.
  • Nasdaq Composite +12.0% YTD 
  • S&P 500 +10.8% YTD 
  • Dow Jones Industrial Average +6.7% YTD 
  • Russell 2000 -0.5% YTD

(BFW) SOHN LONDON WRAP: Muddy Waters’ Block Short Superb Summit Intl

SOHN LONDON WRAP: Muddy Waters’ Block Short Superb Summit Intl
2014-11-19 20:23:53.971 GMT


By Sam Chambers, Joshua Fineman, Lindsay Fortado and Will
Wainewright
Nov. 19 (Bloomberg) -- Below is a recap of some long/short
ideas given at Sohn London conference.

* Muddy Waters’ Block: Say Short Superb Summit Intl
* Caledonia’s Messara: Zillow Shrs Can Reach $770; EV Can
Reach $50b
* Kynikos’s Chanos: Chanos Reiterates Negative View on
Sotheby’s
* Parus’s Chatin: likes Tesla; Tesla is the “Apple of the
Auto Industry’; Says Go Short Transocean
* Pzena Investment’s Pzena: Says Masonite is ‘Very Cheap; May
Have Margin Upside; Says ‘Makes Sense’ to Own Gazprom Shrs;
Gazprom Owners Intentions Are Unclear
* Lone Pine’s Gaonkar: likes Adobe
* TPG-Axon’s Singh: likes Hitachi; Says Yes Bank Shrs
Undervalued; Socgen is a Great Opportunity
* Verrazzano’s Rambourg: likes Accor; top pick in Europe
* AKO Capital’s Tangen: likes Svenska Handelsbanken;
Handelsbanken to Return More Capital in 2015
* Dynamo’s Bruno Rocha: likes Brenntag; 2014 is Inflection
Point for Brenntag
* Lizard’s Leah Zell: likes Kruk S.A.; Shrs Shrs Have 38%-126%
Upside
* Makuria’s Larsson: likes Intralot; Shrs May Triple Within 18
Mos.
* Indus Capital’s Hedayat: Says Piaggio is a ‘Bargain’


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

To contact the reporters on this story:
Sam Chambers in London at +44-20-7673-2021 or
schambers7@bloomberg.net;
Joshua Fineman in New York at +1-212-617-8953 or
jfineman@bloomberg.net;
Lindsay Fortado in London at +44-20-3216-4806 or
lfortado@bloomberg.net;
Will Wainewright in London at +44-20-3525-9007 or
wwainewright@bloomberg.net
To contact the editor responsible for this story:
Arie Shapira at +1-212-617-1488 or
ashapira3@bloomberg.net

(BN) T-Mobile Could Attract Suitors Again, Deutsche Telekom Says (1)

T-Mobile Could Attract Suitors Again, Deutsche Telekom Says (1)
2014-11-19 18:48:54.291 GMT


(Updates with share reaction in sixth paragraph.)

By Cornelius Rahn
Nov. 19 (Bloomberg) -- T-Mobile US Inc., the wireless
carrier that drew unsuccessful bids from Sprint Corp. and Iliad
SA this year, remains an attractive asset for other potential
suitors, according to its owner Deutsche Telekom AG.
Companies that could seek to control the fourth-largest
U.S. mobile-phone company include Comcast Corp., America Movil
SAB and Dish Network Corp., Deutsche Telekom Chief Executive
Officer Timotheus Hoettges said in an interview in Barcelona.
The German carrier isn’t talking to the companies, he said.
Japanese billionaire Masayoshi Son, who controls Sprint
through SoftBank Corp., could also revive an attempt to
strengthen his position in the U.S., Hoettges said. Providers of
software and other services over the Internet may also look for
network infrastructure in the U.S., he said.
“Does that mean that we have to do a fast sale or
something like that? Not at all,” Hoettges, 52, said today
during an investor conference organized by Morgan Stanley.
“It’s a growth stock at this point in time and there are
optionalities in the market.”
T-Mobile shares have held up since Iliad founder Xavier
Niel’s pursuit was snubbed last month for a second time by
Deutsche Telekom, while Sprint has slumped about 20 percent.
Bellevue, Washington-based T-Mobile has raised its forecast for
subscriber additions, while Sprint has announced 2,000 job cuts.

Shares Recover

T-Mobile’s stock pared earlier losses of as much as 3.1
percent after Hoettges’s comment. It traded 1.6 percent lower at
$27.43 as of 1:44 p.m. in New York. Deutsche Telekom rose 0.9
percent to 12.90 euros at the close of trading in Frankfurt.
Comcast’s purchase of Time Warner Cable Inc. for $45.2
billion, and AT&T Inc.’s $48.5 billion takeover of DirecTV will
probably win U.S. regulatory approval, Hoettges said. Such deals
will probably be followed by combinations of fixed and mobile
operators, he said.
There is no need for T-Mobile to enter landline services,
Hoettges said.
Recalling earlier negotiations to sell T-Mobile to Sprint,
Hoettges said the combination -- of the third- and fourth-
largest U.S. wireless carriers to rival Verizon Wireless and
AT&T -- wouldn’t have won regulatory approval.
“That was the idea which we created together with Masa Son
and SoftBank to create really the No. 1 position as we have
created it in the U.K.,” Hoettges said. “This would have
created huge benefits to both parties, better utilization of
infrastructure, better use of spectrum, and even better market
relevance from a coverage perspective. This wasn’t possible from
a regulatory perspective.”
Companies including AT&T, Verizon, T-Mobile and Dish are
now vying for U.S. airwaves in a auction where bids have
exceeded $16 billion and could continue into next month. Dish
Chairman Charlie Ergen has told Deutsche Telekom that he may be
interested in a deal for T-Mobile when the auction is complete,
people familiar with the matter said in September.

For Related News and Information:
Deutsche Telekom Earnings Top Estimates as Europe Recovers
Iliad Abandons T-Mobile Bid After Deutsche Telekom Spurns Offer
Vodafone U.S. Exit Is Cautionary Tale for T-Mobile’s Owner
Top Technology Stories
Top Deals Stories

--With assistance from Scott Moritz in New York.

To contact the reporter on this story:
Cornelius Rahn in Barcelona at +49-30-70010-6212 or
crahn2@bloomberg.net
To contact the editors responsible for this story:
Kenneth Wong at +49-30-70010-6215 or
kwong11@bloomberg.net
Robert Valpuesta

>>> Dollar General affirms commitment to the purchase of Family Dollar

Dollar General affirms commitment to the purchase of Family Dollar 
- affirmed its commitment to the acquisition of Family Dollar Stores, Inc.
- Dollar General is actively engaged in discussions with the Federal Trade Commission (FTC) regarding the extent of potential divestitures that would be required in connection with an acquisition of Family Dollar and has been making good progress. Dollar General will continue to work with the FTC and expects to provide an update in the coming weeks to allow Family Dollar shareholders sufficient time to review such information prior to the Family Dollar shareholders meeting now scheduled for December 23, 2014.
- Goldman, Sachs & Co. is acting as financial advisor to Dollar General. KKR Capital Markets and MCS Capital Markets are advising Dollar General on the financing. Simpson Thacher & Bartlett LLP is acting as its legal counsel.

(BFW) Fresenius/Permira Make Joint Bid for Danone Medical Unit: DJ

BFW 11/19 18:47 *FRESENIUS/PERMIRA MAKE JOINT BID FOR DANONE MEDICAL UNIT: DJ
Fresenius/Permira Make Joint Bid for Danone Medical Unit: DJ
2014-11-19 18:49:56.952 GMT


By Joshua Fineman
Nov. 19 (Bloomberg) -- Danone asks bidders to reaffirm
offers for medical nutrition unit, DJ says, citing people
familiar.
* NOTE: Nov. 14, Danone Said to Weigh Medical-Nutrition IPO as
Sale Talks Falter
WSJ link: http://on.wsj.com/1ubSltS


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

To contact the reporter on this story:
Joshua Fineman in New York at +1-212-617-8953 or
jfineman@bloomberg.net
To contact the editors responsible for this story:
Arie Shapira at +1-212-617-1488 or
ashapira3@bloomberg.net
Courtney Dentch