(BFW) American Air Flight Attendants Reject 1st Merger Contract

BFW 11/09 16:50 American Air Flight Attendants Reject 1st Merger Contract
BFW 11/09 17:01 MORE: American Air Flight Attendants Reject 1st Merger Contract
BFW 11/09 16:42 *AMERICAN AIR FLIGHT ATTENDANTS REJECT 1ST MERGER CONTRACT
MORE: American Air Flight Attendants Reject 1st Merger Contract
2014-11-09 17:45:27.950 GMT


By Theo Mullen
Nov. 9 (Bloomberg) -- Attendents vote 8,196 to 8,180 to
reject offer.
* Contract now goes to arbitration
* Arbitration begins Dec. 3
* Union represents 24,000 workers at American and merger
partner US Airways Group
* Contract would have been first to cover workers at both cos.
* Pilots continue to hold contract talks with American
* Negotiations haven’t begun with unions representing
mechanics and airport ground workers and customer service
and reservation agents.
* American, in e-mail, says “disappointed” in rejection;
notes attendents “won’t get vote” in arbitration

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TecCrunch : Uber’s Next Billion-Dollar Financing Could Be A Convertible Debt Rou

On-demand transportation company Uber could put more money under its already overstuffed mattress*, as the company is seeking to raise an addition $1 billion in funding. Instead of offering equity to investors that participate, however, the company might structure the offering as a convertible debt round.

Uber’s efforts to seek new financing was first reported by the Financial Times yesterday, while Re/code reported the valuation at $25 billion.

Our sources have confirmed Uber is in preliminary talks with potential investors about raising an additional round of financing. However, we’ve heard the company is shopping the deal as a convertible debt offering, as opposed to a typical late-stage equity deal, with a valuation cap of $25 billion.

Uber’s existing investors include Benchmark, Menlo Ventures, Google Ventures, TPG Growth, Kleiner Perkins, Fidelity, Wellington Management, BlackRock, Goldman Sachs, Jeff Bezos, Lowercase Capital, and First Round Capital, among others. With the financing Uber is seeking to add to that list and is pitching new investors on the deal.

For Uber, structuring its financing as convertible debt would reduce its risk of dilution, particularly as the company seeks to raise so soon after its last round. Less than six months ago, the company brought in $1.2 billion in equity financing that valued the company at $18.2 billion.

Investors participating in the current financing would likely get a discount on the next round of financing. They would also benefit from a better liquidation preference in the case of an exit before Uber raised more money.

The company is already extremely well-capitalized, having raised approximately $1.6 billion to date. That’s five times the amount raised by its nearest competitor Lyft. But the new financing would only add to its Costanza wallet* as Uber seeks to enter new markets and experiment with services beyond urban ground transportation.

Uber is available in hundreds of cities and 45 countries around the world, and it’s seeking to make its mobile app for finding a ride ubiquitous in metropolitan areas. But beyond just entering new cities, the company is also trying out different categories of services.

Based on its logistics network, Uber believes that it can move more than just people, and has experimented with everything from courier services to food delivery. Uber was even tested as a delivery partner for Amazon, and there’s a real possibility it could provide the framework for on-demand delivery of goods from other third-party providers in the future.

All that is very capital-intensive, and Uber will need money to make money. Like Palantir, it’s likely Uber will try to remain private for as long as humanly possible. Having billions saved up could help with that.

We’ve also heard there’s the possibility of Uber using the financing to provide some liquidity to early investors. To date Uber has been stingy about allowing early employees and investors to cash out as its valuation has reached news heights.

Even if it does that, the company will have plenty of money left over to go after a really big transportation and delivery segment. Uber cash, even.

>>> Telecom Italia CEO says merger with Oi should be explored

elecom Italia CEO says merger with Oi should be explored
Marco Patuano, the CEO of Telecom Italia (TI), would look at exploring a merger with Oi, the Brazilian telecoms group, Italian language daily Il Sole 24 Ore reported. The report cited Patuano as telling analysts that such an important "strategic opportunity" had to be examined. Patuano said that if TI had a 51% stake in the merged entity formed from Oi and TI's Brazilian subsidiary mobile telco Tim Brasil, there would be significant synergies from the combination of fixed line and mobile telephony operations, the report added. Patuano added that such a merger would only be pursued if it created value for shareholders, the item said.

The item also cited Patuano as noting that TI's primary strategy was to remain in Brazil with its existing assets. The report noted that Oi has been rumoured to be considering a bid on Tim Brasil itself. The item noted that Patuano argued that such a bid would face considerable regulatory difficulties.

The item also cited Patuano as saying that TI expected to complete the sale of its Brazilian transmission tower network by the end of the year. Patuano said that the proceeds would be used to fund TI's participation in the 4G spectrum auctions being conducted by the Brazilian government, the report said.

The report also said, without citing sources, that TI would hold an extraordinary general meeting in the week beginning 17 November entirely dedicated to its Brazilian strategy.


Source Il Sole 24 Ore

>>> PT Portugal: Miguel Pais do Amaral mulling bid with investment funds

PT Portugal: Miguel Pais do Amaral mulling bid with investment funds
Miguel Pais do Amaral, the Portuguese investor, could make a bid for PT Portugal in partnership with investment funds, reported Diario de Noticias. Pais do Amaral is considering an offer for PT Portugal and would need to team up with several investment funds to finance his bid, sources close to the process told the Lusophone paper. In 2006, Pais do Amaral had reportedly mulled a rival offer on Portugal Telecom (PT) to Sonaecom's failed hostile takeover bid, the report said.

Meanwhile, Expresso reported that PT shareholders in Portugal are seeking clarification from Oi, the Brazilian telco, over why it is considering a divestiture of its Portuguese operations that were deemed strategic two months ago. Sources familiar with the process told the Lusophone weekly that national PT investors, including Ongoing, Visabeira and Contolinveste, will block any potential sale of PT Portugal by Oi until the Brazilian group makes more disclosure on its motives for the divestiture and future plans for PT Portugal.

Although PT only holds 25.6% in the merged PT-Oi it has a right to veto asset disposals by the Brazilian telco, the item said.


Source Diario de Noticias, Expresso

(BFW) Bonomi to Raise Club Med Bid, Ally With KKR for Control: Lettre

Bonomi to Raise Club Med Bid, Ally With KKR for Control: Lettre
2014-11-08 14:08:38.654 GMT


By Helene Fouquet
Nov. 8 (Bloomberg) -- Italy’s Andrea Bonomi is going to
increase its bid on Club Mediterranee SA and ally with KKR to
take control of the resort operator, La Lettre de l’Expansion
reports, without saying where it got the information.
* Bonomi is teaming with KKR to counter Fosun International
Ltd.’s plan to take over Club Med, La Lettre says
* Bonomi must unveil its plans by Nov. 13, La Lettre says
* NOTE: While Club Med’s board said Sept. 15 it welcomed
Fosun’s latest bid, the company’s workers’ committee voted
against the new offer
* NOTE: Fosun owns 18% of Club Med and is seeking to take
control with a Sept. 12 bid valuing the company at EU839m
($1.04b). That’s 6.2% more than offered by funds associated
with Bonomi


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FT : BP rises as bid talk resurfaces

Another outing for BP bid speculation helped the London market creep higher on Friday.
A comprehensive settlement of liabilities from the 2010 Deepwater Horizon disaster, in combination with low oil prices, make BP a potential takeover target, Oppenheimer analysts said.
“A merger involving BP and one of its peers would create the world’s largest oil producer and could generate more than $10bn annual cost savings.”

Spill liabilities and Russian exposure have made BP the cheapest stock in the sector, with its implied reserve value of $12.60 per oil barrel 55 per cent below the peer average, said Oppenheimer.
The current share price – up 1.2 per cent to 441.3p – discounts a worst-case scenario of more than $60bn in financial penalties, the broker added.
Miners and oil stocks led the wider market higher after a benign US jobs report buoyed commodity prices.
The FTSE 100 rose 0.3 per cent, up 16.09 points, to 6,567.24, as BHP Billiton took on 2.9 per cent to £16.76 and Anglo American added 2.7 per cent to £13.65.
Cairn Energy climbed 3.5 per cent to 157.9p after FAR Energy, its partner at a well being drilled off the coast of Senegal, was granted a trading halt by the Australian Stock Exchange, pending news.
Commercial success in line with pre-drill estimates could be worth around 138p per Cairn share, analysts said.
Afren jumped 12.7 per cent to 82.1p after announcing the resignation of Ennio Sganzerla, who had been a non-executive director at the explorer since 2009.
The departure of Mr Sganzerla, who led Eni’s African M&A push, raised speculation that Afren is being targeted for a takeover by 7.1 per cent shareholder SAPetro of Nigeria.
Other Kurdistan producers gained, with Genel up 3.7 per cent at 754p and Gulf Keystone firmer by 13.2 per cent to 75p, after the Iraqi region said oil exports had increased.
Investors have been buying the sector this week on hopes that Kurdistan’s government can agree an export payments mechanism in time for results from the key producers due on Thursday.

>>> China announces $40B fund for infrastructure in 'Silk Road' economic belt na

China announces $40B fund for infrastructure in 'Silk Road' economic belt nations - Nikkei 
- In an effort to boost its clout with Asia neighbors, the Chinese govt announced during trade talks that it would set aside $40B to help develop infrastructure projects in Bangladesh, Tajikistan, Laos, Mongolia, Myanmar, Cambodia and Pakistan. China called on the nations to reestablish the Silk Road creating a land route for trade between China and Europe.

>>> BNP Paribas could acquire more German Depotbank businesses

BNP Paribas could acquire more German Depotbank businesses 

BNP Paribas, the French financial services group, could acquire more German Depotbank businesses, Boersen Zeitung reported. BNP Paribas Securities Services Chief Stefan Oser told the German daily there are opportunities to acquire in the German market for Depotbanks.

PNP Paribas acquired Commerzbank's Depotbank business in 2013, the report noted.

The report said there are 48 Depotbanks in German with the largest 10 accounting for an 80% market share.

Source Boersen-Zeitung

>>> Barrons summary: Positive on NSC; Cautious on JCP, LUK

Barrons summary: Positive on NSC; Cautious on JCP, LUK

Cover story: The telecom industry would be better served if regulators allowed consolidation into three major players; instead, there is a "structural imbalance" in which VZ and T benefit from having vastly larger customer bases than smaller rivals S and TMUS. With further deals unlikely, the status quo is likely to continue. T may be the best bet for investors, given its dividend and strong credit rating, which helps it find new ways to benefit from debt.

Features: Positive on EBAY, THC, TER, CDNS, LVLT, LMCA, CHTR, Puerto Rico Electric Power Authority bonds, Japanese stocks: Among picks from investors at Chicago's annual Invest or Kids program, including Bill Ackman of Pershing Square, Steve Kuhn of Pine River, Wally Weitz of Weitz Investments, and Larry Robbins of Glenview; Cautious on JCP: First-half sales boost at struggling retailer appears to be fading; its ability to hit long-term financial goals is questionable, and failing to meet sales growth targets could send shares down 35%; Positive on NSC: Railway has cut its dependence on shipping coal, which is boosting the entire sector, and is handling a broader range of freight; it also has a lower P/E multiple than rivals and provides a better dividend; Cautious on LUK: Financial company once compared to Berkshire Hathaway is among the worst performing in its sector in the S&P 500, but shares seem undervalued and could rise 25%.

Tech Trader: Alexander Eule says the Nasdaq has stabilized since its March 2000 closing high of 5049; Exchange lists about half the number of companies it had then, while the flow of new companies coming in has slowed considerably, since tech startups are increasingly waiting until they mature before going public; Investors are paying more reasonable prices for tech stocks, though shares of GPRO, NFLX, LNKD, and GWRE remain frothy.

Trader: Some market observers worry about a "melt-up" in prices to perhaps 2100 on the S&P 500 by year end; Cautious on K: Stock's valuation has grown, but now seems high given strong headwinds company faces, and its dividend may not be enough to convince investors to buy; Cautious on GNW: Barron's says it was wrong on earlier prediction that shares would reward investors, and now anticipates further writedowns and the possibility an activist investor may step in; it's too late for holders to sell, but investors might want to buy in at current level.

Small Caps: Positive on OMG: Maker of industrial-use magnets, batteries, and specialty chemicals has seen shares drop due to European slowdown, but they still look compelling and could have a lot of upside. Special Report on Health and Wealth: Four panelists-Sharon Oberlander of Merrill Lynch, Kathy Weber of Morgan Stanley, Debra Brede of D.K. Brede Investment Management, and Geri Eisenman Pell of Ameriprise-talk about approaches to planning for the longer retirement periods many people will experience due to better health.

Mutual Funds: Interview with Jeffery Elswick, Portfolio Manager, Frost Total Return Bond Fund (top ten picks: Commercial MBS, U.S. Treasury, Asset-Backed (including CLOs), Agency MBS CMO, AAA Corporate, Agency MBS Pass-Through, Municipal, BBB Corporate, Unrated Corporate, Non-Agency Res MBS).

European Trader: The prospects for European airlines look good, with many raising their earnings outlooks as they benefit from falling oil prices and other trends (Positive on International Consolidated Airlines Group, Ryanair Holdings, Aer Lingus; Cautious on Air France-KLM, Lufthansa).

Asian Trader: Positive on Xiaomi: Privately held smartphone maker is likely worth its recent $40B valuation, given a strong sale trajectory and growth potential in emerging markets.

Emerging Markets: Poland is an example of a country in which the market does not mirror the broader economic performance analysts focus on; among other things, pension reform has been a drag on stocks, many of which are victims of their own stability, priced at hefty premiums to peers.

Commodities: "Nickel prices are likely to climb as investors put aside worries about growing stockpiles of the metal and refocus on a limited supply outlook."

Streetwise: Positive on CHK: Company's prospects have improved after sale of 400K acres in Pennsylvania and West Virginia to SWN, allowing it to focus on getting the most from its best assets.

>>> China Pres Xi: China economic risks are "not that scary"; Economy shifting to a slower but more stable rate of growth

China Pres Xi: China economic risks are "not that scary"; Economy shifting to a slower but more stable rate of growth - financial press - Says: "Some worry whether China's economic growth rate will fall further and whether it can overcome difficulties... There are indeed risks but they are not that scary... For the Asia-Pacific and the world at large, China's development will generate huge opportunities and benefits and hold lasting and infinite promise."