REuters - Lavazza and Strauss vie for French coffee brands


(Reuters) - Italy's Lavazza and Israel's Strauss Group (STRS.TA) have hired advisers to submit rival bids for two French coffee brands which may come on the market early next year, several sources familiar with the matter said.

The L'Or and Grand Mere brands are expected to be put up for sale to ease a planned merger of Mondelez International's (MDLZ.O) coffee business with D.E Master Blenders 1753.

Lavazza is working with JP Morgan to make a bid in November while Strauss has appointed Rothschild to seek to acquire the brands, said the sources, who declined to be identified because the matter is private.

The two coffee companies are facing competition from four private equity funds -- BC Partners, Cinven, Clayton Dubilier & Rice, and PAI Partners -- which are also looking to finalize their bids following preliminary talks with the sellers, who are being advised by Lazard and Perella Weinberg Partners, the sources said.

The brands could be valued at about 450 million to 500 million euros ($575-640 million) in a sale.

>>> US Gapping up

Gapping up
Briefing note: With S&P futures up over 1% in the pre-market, many stocks are gapping higher that are not listed.

In reaction to strong earnings/guidance: QLGC +10.1%, (also Announces Approval of a $100 million Stock Repurchase Program), FHN +6.1%, XLNX +5.7%, CPHD +4.1%, MS +3.8%, GE +3.7%, WDFC +3%, SLB +2.6%, HON +1.9%

M&A news: HZNP +1.9% (announces acquisition of U.S. rights to PENNSAID 2% From Nuvo Research Inc. for $45 mln in cash), EXP +1.8% (to acquire CRS Proppants for ~$225 mln)

Select EU related names showing strength: ING +3.3%, ALU +3%, ASML +2.3%, CS +1.8%

Select Ebola related stocks trading higher: IBIO +11.6%, NLNK +5.1%, LAKE +4.9%

Select oil/gas related names showing strength: PBR +4.1%, STO +3.3%, SDRL +2.9%, HAL +2.2%

Select fan favorites trading higher: GPRO +4.6%, TSLA +2.2%, TWTR +2.1%, AAPL +1.3%

Other news: AMPE +16.3% (announces results of the open label portion of the multiple intra-articular injections study of Ampion), SRPT +9.7% (announces publication of Ebola and Marburg Phase I Clinical Study results in antimicrobial agents and chemotherapy), FMI +9.1% (announced an agreement to enhance precision medicine options for Priority Health members with advanced cancers, also upgraded to Outperform from Mkt Perform at William Blair), BEAT +7.8% (announces reinstatement of Cigna's coverage of Mobile Cardiac Monitoring Services), HCLP +6.1% (announced 9% increase in third quarter 2014 distribution to $0.625 per unit), PPC +2.9% (following weakness in poultry names on SAFM Investor Day comments), NVS +1.9% (NICE has issued final draft guidance proposing to recommend imatinib, also known as Glivec and made by NVS ), X +1.8% (may be in symp with AKS upgrade), .

Analyst comments: AKS +6.1% (upgraded to Buy from Neutral at Nomura), SUNE +5.7% (upgraded to Outperform from Mkt Perform at Cowen), EJ +5.6% (upgraded to Buy from Neutral at Goldman), NBR +2.2% (upgraded to Buy from Neutral at UBS), GS +1.5% (upgraded to Outperform from Mkt Perform at Keefe Bruyette), ISRG +0.9% (upgraded to Outperform at Leerink Partners)

>>> US Gapping down

Gapping down
In reaction to disappointing earnings/guidance: URBN -13.6%, (reports Q3 negative comparable retail segment net sale has continued quarter-to-date; gross profit margin may deleverage at a rate greater than during 1H), SNDK -2.8%, ATHN -2%, AMD -1.1%, GOOG -0.9%, COF -0.7%

M&A news: CF -3.9% (announced the termination of merger discussions with Yara International)

Other news: RPRX -40.6% (announces upcoming FDA meeting to be Type C meeting instead of Type B Pre-NDA meeting), CCL -3.4% (Health Care worker who may have handled Thomas Duncan's Ebola lab specimens has been isolated on CCL ship, according to reports), RCL -3% (in symp with CCL news), ANF -1.7% (following URBN guidance), AEO -1.2% (following URBN guidance),EARN -1.1% (co requested the withdrawal of its registration statement on Form S-11; intends to register on Form S-3)

>>> Schlumberger beats by $0.03, reports revs in-line--> SLB +2.6% pre open

Schlumberger beats by $0.03, reports revs in-line

Reports Q3 (Sep) earnings of $1.49 per share, $0.03 better than the Capital IQ Consensus Estimate of $1.46; revenues rose 8.5% year/year to $12.6 bln vs the $12.63 bln consensus.

"Strong activity in North America and robust growth in International Areas, led by Latin America and supported by Europe/Africa/CIS in spite of international sanctions in Russia, drove third-quarter results to a new record high. At the same time, Middle East & Asia proved highly resilient in the face of significant headwinds in Northern Iraq. All Areas and all Groups recorded growth, backed by new technology penetration and strong operational execution."

"While market sentiments are currently driven by fear of short-term over-supply, and although the oil demand outlook has been revised slightly downwards, we see little reason at the present time to change our view that the challenges of maintaining non-OPEC supply outside North America, the lack of growth in OPEC sustainable production capacity maintaining tightness in OPEC spare capacity, and the continuing geopolitical risks in some key producing regions all lead to a supply-demand situation that is relatively well-balanced."


>>> Schlumberger on conf cal
  • Drilling Group revenue was $4.8 bln in the quarter and increased 3.6%.
  • Margins improved by 60 basis points to 21.7%. These increases were largely attributable to robust drilling and measurement activity in the offshore North America, Latin America the strong IPM activity in Mexico. The second quarter acquisition also contribute to the revenue growth.
  • Production Group revenue of $4.7 bln increased 8.1%.
  • This growth was led by well services largely as a result of the rebound from the spring break-up in Canada and strong performance on U.S. plants.
  • The co's international business posted strong results again in Q3 with a sequential increase in revenue and with pretax operating margin expanding 55 basis points to 24.6%, which is the highest level seen in five years in spite of the geopolitical headwinds experienced in Russia northern Iraq and Libya.
  • In terms of pricing, the international market remains highly competitive for basic services and the company sees no sign of any general pricing inflection.
  • However, the co continues to be able to drive effective pricing for new technology together continues growth in integration performance-based contracts this combination puts it in a very strong compared a position which it continues to leverage to drive market share gains and expand operating margins.

(BFW) QE4 Should Be Considered If Economy Weakens: Fed’s Rosengren

QE4 Should Be Considered If Economy Weakens: Fed’s Rosengren
2014-10-17 12:12:53.606 GMT


By Joanna Ossinger
Oct. 17 (Bloomberg) -- U.S. economic data hasn’t shifted
enough so far to make overall forecast much different, Boston
Fed’s Eric Rosengren said on CNBC; still expects 2015 rate rise.
* If inflation hits 2% target, expects to see wage growth
* Sees “fairly low PCE” for next several quarters if oil
stays ~$80/barrel
* Sees several years to get back to 2% inflation
* “Fairly weak” data coming out of Europe; financial markets
have moved more than eocnomic data coming from Europe
* NOTE: Yday, Bullard Says Fed Should Consider Delay in Ending
QE
* NOTE: Fed may see silver lining in credit, equity, currency
volatility, Bloomberg Intelligence says

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To contact the reporter on this story:
Joanna Ossinger in New York at +1-212-617-7789 or
jossinger@bloomberg.net
To contact the editor responsible for this story:
Joanna Ossinger at +1-212-617-7789 or
jossinger@bloomberg.net