Appaloosa (David Tepper) discloses updated portfolio positions in 13F filing: New positions in NXPI, LO, BABA; cut stake in AAL; closed position in MWA
Highlights from 2014 Q3 filing as compared to 2014 Q2 filing:
- New positions in: NXPI (~2.5 mln shares), LO (~1.4 mln), BABA (~0.7 mln)
- Increased positions in: WHR (to ~2 mln shares from ~1 mln shares)
- Decreased positions in: AAL (to ~7.3 mln shares from ~11.7 mln shares), DIS (to ~0.2 mln from ~1.4 mln)
- Closed positions in: MWA (from ~2.1 mln shares), CMCSA (from ~0.9 mln), AIG (from ~1.2 mln)
Senator Investment Group discloses updated portfolio positions in 13F filing: New position in MTG, APC; increased holdings in ABBV, CMCSA; cut stake in HRB, STWD; closed position in PHH, HLT, C
Highlights from 2014 Q3 filing as compared to 2014 Q2 filing:
New positions in: MTG (~9 mln shares), APC (~2 mln), TRP (~3 mln)
Increased positions in: ABBV (to ~3 mln shares from ~1 mln shares), CMCSA (to ~6.8 mln from ~1.4 mln), RDN (to ~12 mln from ~6 mln), FOXA (to ~7.8 mln from ~4.5 mln), UAL (to ~4.2 mln from ~2 mln)
Decreased positions in: HRB (to ~5.8 mln shares from ~8.9 mln shares), STWD (to ~2.4 mln from ~4.7 mln), TWC (to ~0.4 mln from ~3 mln), WPX (to ~4 mln from ~6 mln)
Closed positions in: PHH (from ~5 mln shares), HLT (from ~6 mln), C (from ~4 mln), SUNE (from ~4 mln), BA (from ~0.8 mln)
Baker Hughes Can Recoup Stock Losses Sooner With Deal: Real M&A
2014-11-14 20:03:43.61 GMT
(For a Real M&A column news alert: {SALT REALMNA <GO>}.)
By Tara Lachapelle
Nov. 14 (Bloomberg) -- Halliburton Co. may give Baker
Hughes Inc. shareholders a quicker way to recoup the more than
$10 billion in value they’ve lost since July.
Baker Hughes, the third-largest oilfield-services company,
said it’s in preliminary talks to merge with No. 2 Halliburton
and combine forces amid an industry downturn caused by plunging
oil prices. Before news of the talks became public, Baker Hughes
shares had slipped 32 percent from this year’s high of $75.35
apiece, wiping out more than $10 billion of market value.
Analysts were predicting that it’d take as long as 12 months to
return to that level. Now that the company is in takeover talks,
shareholders may be made whole a lot sooner.
The timing is good for Halliburton, too. The $46 billion
company is swooping in right as crude oil trades at the lowest
in more than four years and acquisition candidates remain cheap.
Halliburton could pay $70 to $75 a share with a mix of cash and
stock -- as much as 26 percent higher than Baker Hughes’ price
today -- and it would give a boost to 2016 cash flow, according
to Sterne Agee & Leach Inc. The cost savings “should be
massive,” says Simmons & Co.
The drop in crude “served as an opening,” Ted Harper, a
Houston-based fund manager at Frost Investment Advisors LLC,
which oversees $10 billion and owns shares of Halliburton and
Baker Hughes, said in a phone interview. “As a shareholder of
both, I am in favor of it for a number of reasons, not the least
of which is it creates a global enterprise which will have the
intellectual property, technical expertise and services
portfolio to compete” with market leader Schlumberger Ltd.
For Related News and Information:
Halliburton-Baker Hughes Deal Would Face ‘Pretty Deep’ Scrutiny
NSN NF1JRJ6KLVRN <GO>
Halliburton, Baker Hughes Consider Merger Amid Industry Downturn
NSN NF09IH6JIJV3 <GO>
Fracking Boom Spurs Demand for Sand, Clouds of Dust: Commodities
NSN NF00DX6TTDS3 <GO>
Real M&A columns: NI REALMNA <GO>
Top deal stories: DTOP <GO>
To contact the reporter on this story:
Tara Lachapelle in New York at +1-212-617-8911 or
tlachapelle@bloomberg.net
To contact the editors responsible for this story:
Beth Williams at +1-212-617-2307 or
bewilliams@bloomberg.net
Elizabeth Wollman
2014-11-14 20:03:43.61 GMT
(For a Real M&A column news alert: {SALT REALMNA <GO>}.)
By Tara Lachapelle
Nov. 14 (Bloomberg) -- Halliburton Co. may give Baker
Hughes Inc. shareholders a quicker way to recoup the more than
$10 billion in value they’ve lost since July.
Baker Hughes, the third-largest oilfield-services company,
said it’s in preliminary talks to merge with No. 2 Halliburton
and combine forces amid an industry downturn caused by plunging
oil prices. Before news of the talks became public, Baker Hughes
shares had slipped 32 percent from this year’s high of $75.35
apiece, wiping out more than $10 billion of market value.
Analysts were predicting that it’d take as long as 12 months to
return to that level. Now that the company is in takeover talks,
shareholders may be made whole a lot sooner.
The timing is good for Halliburton, too. The $46 billion
company is swooping in right as crude oil trades at the lowest
in more than four years and acquisition candidates remain cheap.
Halliburton could pay $70 to $75 a share with a mix of cash and
stock -- as much as 26 percent higher than Baker Hughes’ price
today -- and it would give a boost to 2016 cash flow, according
to Sterne Agee & Leach Inc. The cost savings “should be
massive,” says Simmons & Co.
The drop in crude “served as an opening,” Ted Harper, a
Houston-based fund manager at Frost Investment Advisors LLC,
which oversees $10 billion and owns shares of Halliburton and
Baker Hughes, said in a phone interview. “As a shareholder of
both, I am in favor of it for a number of reasons, not the least
of which is it creates a global enterprise which will have the
intellectual property, technical expertise and services
portfolio to compete” with market leader Schlumberger Ltd.
For Related News and Information:
Halliburton-Baker Hughes Deal Would Face ‘Pretty Deep’ Scrutiny
NSN NF1JRJ6KLVRN <GO>
Halliburton, Baker Hughes Consider Merger Amid Industry Downturn
NSN NF09IH6JIJV3 <GO>
Fracking Boom Spurs Demand for Sand, Clouds of Dust: Commodities
NSN NF00DX6TTDS3 <GO>
Real M&A columns: NI REALMNA <GO>
Top deal stories: DTOP <GO>
To contact the reporter on this story:
Tara Lachapelle in New York at +1-212-617-8911 or
tlachapelle@bloomberg.net
To contact the editors responsible for this story:
Beth Williams at +1-212-617-2307 or
bewilliams@bloomberg.net
Elizabeth Wollman
Airbus Taxis to a Better Slot
Superjumbo A380 Expected to Stop Losing Money Next Year
Airbus Group ’s superjumbo A380 is finally en route to the break-even point, potentially reducing drag on the aerospace manufacturer’s results and stock.
Long an albatross around Airbus’s commercial-aerospace division, the 525-seater A380 is projected to stop losing money next year, the company said Friday when presenting third-quarter results. This should clear the way for the commercial division, which accounts for about two-thirds of the company’s profit, to more fully benefit from any uplift from its more promising fleet of aircraft: the A320, A330 and A350.Losses from the A380, which launched in 2007, continued in the most-recent period. The company delivered nine of them in the quarter compared with four a year earlier. The delivery of a higher number of the lossmaking planes contributed to a 41% year-over-year drop in net profit for the third quarter. But it also sped the A380’s path to break-even. Production improvements for the A380 pushed operating income up by 14%, or about a fifth higher than expected, according to Investec.
Another positive: the progress of the fuel-efficient, long-range A350, which is the company’s largest development program currently. The plane completed its maiden flight on schedule in the third quarter with the first delivery to be made this year.
The transition of Airbus’s A320 to the new-engine A320neo should also improve profitability. And the A320neo sold out until 2020, according to UBS .
It isn’t all blue skies. The A380 could still fall back into the red. And Boeing’s 777X, which is being pitted against the A380 aims to offer a more fuel-efficient alternative when it enters the fray about 2020. So to stay competitive, Airbus needs to upgrade its existing engine, which will dent cash flow.
As well, reaching break-even doesn’t mean the A380 is going to suddenly be profitable—that isn’t expected until the end of the decade at best, when second-hand planes also begin to enter the market.
At the moment, though, the stock reflects a good deal of the uncertainty. The shares are down about 8% this year, while the Stoxx Europe 600 is up around 2%. Trading at about 5.7 times 2015 earnings before interest, tax, depreciation and amortization, the stock remains at a sizeable discount to Boeing at 8.7 times, according to FactSet.
So while Airbus isn’t ready to soar, it should be leveling out.
CSC, Serco Exposed to Possible $2.3b Immigration Order Boost: BI
2014-11-14 16:25:30.23 GMT
By Rachel Layne
Nov. 14 (Bloomberg) -- Computer Sciences, Altegrity and
Serco lead U.S. immigration agency contracts that may benefit
under a potential executive order from President Obama,
Bloomberg Intelligence analysts Brian Friel and Caitlin Webber
write in note.
* $2.3b assumes $485 processing fee
* Computer Sciences leads 2014 contracts w/ the agency at
$904m
* NOTE: Earlier, Immigration Executive Order ’Is Going to
Happen,’ Obama Says
For Related News and Information:
First Word scrolling panel: FIRST<GO>
First Word newswire: NH BFW<GO>
To contact the reporter on this story:
Rachel Layne in Boston at +1-617-210-4634 or
rlayne@bloomberg.net
To contact the editor responsible for this story:
Arie Shapira at +1-212-617-1488 or
ashapira3@bloomberg.net
2014-11-14 16:25:30.23 GMT
By Rachel Layne
Nov. 14 (Bloomberg) -- Computer Sciences, Altegrity and
Serco lead U.S. immigration agency contracts that may benefit
under a potential executive order from President Obama,
Bloomberg Intelligence analysts Brian Friel and Caitlin Webber
write in note.
* $2.3b assumes $485 processing fee
* Computer Sciences leads 2014 contracts w/ the agency at
$904m
* NOTE: Earlier, Immigration Executive Order ’Is Going to
Happen,’ Obama Says
For Related News and Information:
First Word scrolling panel: FIRST<GO>
First Word newswire: NH BFW<GO>
To contact the reporter on this story:
Rachel Layne in Boston at +1-617-210-4634 or
rlayne@bloomberg.net
To contact the editor responsible for this story:
Arie Shapira at +1-212-617-1488 or
ashapira3@bloomberg.net
Verizon, AT&T Unlikely to Plan REITs Near-Term: Elevation
2014-11-14 16:18:41.633 GMT
By Felice Maranz
Nov. 14 (Bloomberg) -- Verizon shrs gained earlier amid
speculation regarding possible REIT spinoff; Elevation skeptical
either VZ or AT&T plan REITs similar to Windstream in near term,
TMT analyst Stephen Sweeney says in note.
* Cites VZ statements it’s explored REIT strategy, would be
much more complex than WIN; sees VZ wireless, FiOS network
as central, VZ mgmt may not want to split into operating,
networks entities
* Sees T having same size/complexity issues, plus pending
DirecTV deal (now top strategic priority), possible added
LatAm expansion
* Notes potential REIT index influence: VZ, T would probably
crowd out traditional land-based REITs; REIT-focused
investors, funds “may not like”
* NOTE: July 29, T, VZ Unlikely to Consider REIT, UBS Says
For Related News and Information:
First Word scrolling panel: FIRST<GO>
First Word newswire: NH BFW<GO>
To contact the reporter on this story:
Felice Maranz in New York at +1-212-617-8118 or
fmaranz@bloomberg.net
To contact the editor responsible for this story:
Arie Shapira at +1-212-617-1488 or
ashapira3@bloomberg.net
2014-11-14 16:18:41.633 GMT
By Felice Maranz
Nov. 14 (Bloomberg) -- Verizon shrs gained earlier amid
speculation regarding possible REIT spinoff; Elevation skeptical
either VZ or AT&T plan REITs similar to Windstream in near term,
TMT analyst Stephen Sweeney says in note.
* Cites VZ statements it’s explored REIT strategy, would be
much more complex than WIN; sees VZ wireless, FiOS network
as central, VZ mgmt may not want to split into operating,
networks entities
* Sees T having same size/complexity issues, plus pending
DirecTV deal (now top strategic priority), possible added
LatAm expansion
* Notes potential REIT index influence: VZ, T would probably
crowd out traditional land-based REITs; REIT-focused
investors, funds “may not like”
* NOTE: July 29, T, VZ Unlikely to Consider REIT, UBS Says
For Related News and Information:
First Word scrolling panel: FIRST<GO>
First Word newswire: NH BFW<GO>
To contact the reporter on this story:
Felice Maranz in New York at +1-212-617-8118 or
fmaranz@bloomberg.net
To contact the editor responsible for this story:
Arie Shapira at +1-212-617-1488 or
ashapira3@bloomberg.net
Fugro Short Sellers Burned as Stock More Than Doubles in Nov.
2014-11-14 16:12:12.385 GMT
By Benjamin Dow
Nov. 14 (Bloomberg) -- Fugro shares climb as much as 27% on
volume 2.2x 3-month daily avg; leads gains on Stoxx 600 Oil &
Gas Index (+0.4%).
* Shares up 61% this week after 28% gain last week
* Even as stock climbed, traders increased short positions on
Fugro, Markit data show; 14% of shares outstanding on loan
as of yday vs 9.7% on Nov. 5
* Co. trades at 20% premium to average PT EU18.08; at least 3
brokers raised shares to buy this week
* NOTE: On Nov. 10, Boskalis said it has no plans to bid for
co. after acquiring 15% stake
* NOTE: Nov. 6, Fugro CEO made 30% paper profit in two days
For Related News and Information:
First Word scrolling panel: FIRST<GO>
First Word newswire: NH BFW<GO>
To contact the reporter on this story:
Benjamin Dow in Moscow at +7-495-771-7735 or
bdow2@bloomberg.net
To contact the editors responsible for this story:
James Ludden at +44-20-7673-2645 or
jludden@bloomberg.net
Andrew Rummer
2014-11-14 16:12:12.385 GMT
By Benjamin Dow
Nov. 14 (Bloomberg) -- Fugro shares climb as much as 27% on
volume 2.2x 3-month daily avg; leads gains on Stoxx 600 Oil &
Gas Index (+0.4%).
* Shares up 61% this week after 28% gain last week
* Even as stock climbed, traders increased short positions on
Fugro, Markit data show; 14% of shares outstanding on loan
as of yday vs 9.7% on Nov. 5
* Co. trades at 20% premium to average PT EU18.08; at least 3
brokers raised shares to buy this week
* NOTE: On Nov. 10, Boskalis said it has no plans to bid for
co. after acquiring 15% stake
* NOTE: Nov. 6, Fugro CEO made 30% paper profit in two days
For Related News and Information:
First Word scrolling panel: FIRST<GO>
First Word newswire: NH BFW<GO>
To contact the reporter on this story:
Benjamin Dow in Moscow at +7-495-771-7735 or
bdow2@bloomberg.net
To contact the editors responsible for this story:
James Ludden at +44-20-7673-2645 or
jludden@bloomberg.net
Andrew Rummer
Jana Partners discloses updated portfolio positions in 13F filing
Highlights from 2014 Q3 filing as compared to 2014 Q2 filing:
- New positions in: DG (~8.1 mln shares), RAX (~7.0 mln), SDRL (~4 mln), ACM (~3.2 mln), MCD call options (~1.0 mln)
- Increased positions in: EBAY (to ~18.4 mln shares from ~1.0 mln shares), HTZ (to ~22.4 mln shares from ~5.9 mln shares)
- Decreased positions in: APA (to ~3.4 mln shares from ~10.0 mln shares)
- Closed positions in: SUNE (from ~10.4 mln shares), MNK (from ~5.7 mln), CBS call options (~4.3 mln), OIS (~2.6 mln)
Conatus Capital discloses updated portfolio positions in 13F filing - new positions in APD, APC, INTU, NKE, TWX
Highlights from 2014 Q3 filing as compared to 2014 Q2 filing:
- New positions in: APD (~1.2 mln shares), APC (~1.05 mln), INTU (~1.7 mln), NKE (~1.3 mln), TWX (~1.5 mln)
- Increased positions in: TIF (to ~1.7 mln shares from 894K shares)
- Closed positions in: CBOE (from 674K shares), MON (from ~1.3 mln), CRM (from ~1.38 mln), DVN (from ~1.1 mln)