(BFW) *CARL ICAHN SAYS APPLE SHOULD DO A DUTCH TENDER


BFW 01/28 17:48 *ICAHN TO CNBC ’WISHES HAD BOUGHT MORE’ OF NETFLIX STOCK
BN 01/28 17:48 *ICAHN TO CNBC 'WISHES HAD BOUGHT MORE' OF NETFLIX STOCK
BN 01/28 17:45 *CARL ICAHN SAYS APPLE SHOULD DO A DUTCH TENDER
BN 01/28 17:44 *ICAHN TELLS CNBC 'DOES NOT MICRO MANAGE' APPLE
BN 01/28 17:41 *ICAHN TELLS CNBC 'APPLE IS ONE OF BEST BUYS IN DECADES'
BN 01/28 17:36 *ICAHN SAYS ONLY CRITICISM APPLE DOESN'T DO BIGGER BUYBACK:CNBC
BN 01/28 17:33 *ICAHN TELLS CNBC THINKS 'VERY HIGHLY' OF TIM COOK
BN 01/28 17:32 *ICAHN TO CNBC WILL REVISE GUIDANCE ON APPLE STOCK
BN 01/28 17:30 *CARL ICAHN BEGINS TO SPEAK IN INTERVIEW ON CNBC
*CARL ICAHN SAYS APPLE SHOULD DO A DUTCH TENDER
2015-01-28 17:46:26.837 GMT

--ANDREW CINKO

-0- Jan/28/2015 17:46 GMT

NY Post : PepsiCo CEO feeling the heat to develop succession plan

Nelson Peltz plans to pressure PepsiCo as soon as this summer to have CEO Indra Nooyi develop a plan of succession, The Post has learned.
Peltz, whose Trian Partners owns 1.2 percent of PepsiCo, on Jan. 16 announced a deal with the soft drink and snacks giant that put his adviser — former H.J. Heinz CEO William Johnson — on the PepsiCo board in exchange for agreeing not to launch a proxy fight.
While that move has been interpreted in some precincts as the two sides reaching a truce, one person close to the situation told The Post that is not the case.
Johnson, once he joins the board in March, will push quickly for changes, the person said.
“It’s not a truce,” the source said. “[Peltz] wants major changes at PepsiCo to unfold this summer.”
Nooyi has led PepsiCo for eight years and there is currently no clear CEO-in-waiting, the source said.
If Peltz’s pressure plan works, he would then be able to help select as Nooyi’s successor someone more open to splitting the company’s Frito-Lay snacks and soda businesses — a cause for which Peltz has fought unsuccessfully for the last few years.
Even company insiders who oppose Peltz’s plan to split snacks and soft drinks agree the $148 billion company needs a succession plan, sources said.
“In my view, there is no heir apparent to Nooyi,” a source close to PepsiCo said.
The PepsiCo board in 2011 and early 2012 successfully pressured Nooyi to set up a succession plan at a time the company was falling further behind archrival Coca-Cola.
Toward that end, PepsiCo in March 2012 hired Sam’s Club chief Brian Cornell. But Cornell exited in August to became chairman and CEO of Target.
A second possible successor, Zein Abdalla, the boss of PepsiCo’s Europe operation, retired on Dec. 31.
CFO Hugh Johnston — who is closest of all the senior executives to Nooyi — is not considered a strong candidate, the source close to the company said.
Meanwhile, activist Peltz is gearing up for a DuPont proxy fight and does not want to engage in two such battles at the same time, sources said.
Nooyi has led a strong turnaround at PepsiCo in which shares have outperformed those of rival Coke over the last six-month and 12-month periods.
PepsiCo shares closed Tuesday at $96.72, down 2 percent.

(BFW) Vinci, Eiffage Profit Harm From Toll Freeze Is Limited: Analysts

Vinci, Eiffage Profit Harm From Toll Freeze Is Limited: Analysts
2015-01-28 14:47:25.199 GMT


By Francois de Beaupuy
(Bloomberg) -- Vinci drops as much as 2.9%, compounding
yesterday’s 3.5% decline, following French govt decision to
suspend 0.57% toll increase pending review, potential
cancellation of highway-operating contracts.
* Eiffage falls as much as 2.7% after yesterday’s 6.3% drop
* Aurel BGC estimates toll freeze for full year would cut EPS
by less than 1% at Vinci, by about 2.3% at Eiffage
* Deal between govt., highway operators on tolls,
concession durations, investment still most likely
outcome, though Vinci, Eiffage remain undermined by
political risk until highway stimulus package is signed
* Deal between govt., highway operators on tolls,
concession durations, investment still most likely
outcome, though Vinci, Eiffage remain undermined by
political risk until highway stimulus package is signed</li></ul>
* Natixis says yesterday’s drop in Vinci, Eiffage shares
priced in a toll freeze through 2017
* Societe Generale says flat tolls this year vs planned
increase of 0.57% would reduce Vinci’s valuation by ~EU200m,
Eiffage’s APRR concession by ~EU100m
* NOTE: France’s Royal Says ‘Reasonable’ to Freeze Highway
Toll Prices
* NOTE: French Highway Companies Consider Legal Action Vs
Government


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

To contact the reporter on this story:
Francois de Beaupuy in Paris at +33-1-5365-5051 or
fdebeaupuy@bloomberg.net
To contact the editor responsible for this story:
Simon Thiel at +44-20-3525-2814 or
sthiel1@bloomberg.net

>>> US Gapping UP

Gapping up
In reaction to strong earnings/guidance: ABMD +29.3%, (also receives FDA HDE approval for the Impella RP; First FDA Approved percutaneous single access heart pump designed for right heart support), FSL +14.3%, ZHNE +8.8%, AAPL +8.4%, X +8.4%, FTK +8.3%, WDC +6.5%, YHOO +5.4%, JNPR +5.4%, TUP +5.3%, KLIC +5.1%, EA +4.6%, ABC +4.3%, KTCC +3.9%, (thinly traded), TEL +3.7%, COMM +3.6%, ACAT +3.6%, BA +3.3%, MRCY +2.7%, SYMC +2.5%, UMC +2.4%, CNI +2.2%, (also increases quarterly dividend ), MTOR +2.2%, CYT +2%, ANTM +2%, GD +2%, TSS +1.9%, SPIL +1.8%, IP +1.5%, CRS +1.1%, T +1%, DOX +1%, (also enters into five-year managed services contract for business and operational support systems (B/OSS) with U.S. Cellular; selected by Telefonica for multi-channel transformation in Brazil), MRTN +0.8%

M&A news: RMTI +5.1% (cont M&A spec), COMM +3.6% (Commscope (COMM) confirms it has agreed to acquire TE Connectivity's Enterprise and Wireless businesses, also reported guidance), TEL +3.5% (Commscope (COMM) confirms it has agreed to acquire TE Connectivity's Enterprise and Wireless businesses; also reported earnings)

Select AAPL supplier/related names showing strength: CRUS +3.7%, SWKS +2.5%, NXPI +2.5%, BRCM +2.4%, QCOM +1.3%, AVGO +1.2%

Other news: APRI +46.7% (announced issuance of U.S. patent for RayVa), PSTI +12.5% (still checking), FTK +8.3% (to purchase substantially all of the assets of International Artificial Lift for $2.25 mln), ADXS +7.7% (update related to the Phase 2 open-label clinical study of ADXS-HPV), UIHC +5.1% (to replace AKRX in the S&P SmallCap 600), PLUG +3.1% (cont strength), AKS+2.6% (following X results and its own earnings Jan 27 before the open), ANIP +2.4% (to replace GTIV in the S&P SmallCap 600), LUV +2.4% (upgraded to Outperform from Neutral at Credit Suisse), REXX +2.3% (announced 2014 proved reserves increased 57% to 1,337 Bcfe), MTOR +2.2% (announces that it will launch a network of Meritor-approved repair shops with independent service garages across the United States and Canada ), MU +2% (in symp with JNPR, AAPL), STX +1.7% (following WDC earnings), FB +1.7% (trading higher with Nasdaq futures; will report AMC), ATVI +1.5% (following EA results), CPST +1.5% (may be in relation to order from Syracuse VA Medical Center for Eight C65 Microturbines announced yesterday), WLT +1.3% (suspends dividend; co previously paid a quarterly dividend of $0.01 per share), MPEL +1.3% (Macau table games revenue rose 6% last week), CVE +1.1% (to respond to low oil prices with capital budget reductions), AMZN +1% (trading higher with Nasdaq futures), GOOG +1% (trading higher with Nasdaq futures), SSL +0.9% (announces plan to respond to a low oil price environment)

Analyst comments: ACAD +2.5% (target raised to $50 from $42 at Jefferies), USG +1.7% (upgraded to Outperform from Neutral at Macquarie)

>>> US Gapping down

Gapping down
In reaction to disappointing earnings/guidance: ETH -11.5%, EZPW -8.1%, PBR -7.7%, OTEX -6.8%, (light volume), MHH -6.7%, RES -2.6%, UMBF -2.4%, STM -2.2%, IGT -1.8%, EVER -1.6%, CCUR -1.5%, GNTX -1.4%, AEP -1.3%, MKC -1.2%, FCAU -1.1%, TXT -0.9%, STJ -0.9%, HES -0.9%, PX -0.8%

Select Brazil related names trading lower: SBS -3.6%, BSBR -3.4%, SID -3.3%, TSU -1.6%, BBD -1.6%, ERJ -1%, VALE -0.9%

Select EU financial related names showing weakness: SAN -2.9%, IRE -2.9%, ING -2.5%, DB -1.3%

Select metals/mining stocks trading lower: HMY -2.9%, AUY -1.8%, AU -1.6%, GDX -0.5%

Select oil/gas related names showing early weakness: TOT -2.1%, RDS.A -1.3%, BP -1.2%

Other news: RMTI 5.1% (cont M&A spec), NBG -20.5% (cont weakness), SYRG -6.8% (launches common stock offering of $150 mln), OPXA -5.6% (files registration statement for rights offering), SSRI -4.1% (receives Notice of Reassessment), FXCM -2.9% (cont pre-mkt vol), SBGL -2.4% (reports Q4 production), WWE -1.4% (following yesterday's ~20% move higher), BABA -1.2% (Yahoo! announces planned tax-free spin-off of the remaining stake in Alibaba)

Analyst comments: AGIO -3.3% (downgraded to Neutral from Buy at Citigroup), IHG -3.2% (downgraded to Hold from Buy at Deutsche Bank), PHG -1.8% (downgraded to Underweight from Equal Weight at Barclays), UPL -1.4% (downgraded to Sell from Neutral at Goldman), BTU -1.3% (downgraded at BB&T), AAL -0.8% (downgraded to Neutral from Outperform at Credit Suisse)

>>> Apple: Color on Quarter

Apple: Color on Quarter

  • Apple (AAPL) is +8% at $118 in the premarket (market cap ~$694 bln). AAPL blew away expectations as it sold a staggering 74.5 mln iPhones; the quarter is reminiscent of the Steve Jobs era when the iPhone and then iPad initially took off. The $18 bln in net income is a corporate record. AAPL hit an all time high at $119.75/share in late November.
  • Cowen raises tgt to $115 from $113. A big beat on already elevated expectations + guide that would have been ~$0.10 above their numbers (~$0.20 above St) ex-FX is a great outcome. That said, it is hard to pay for a Dec beat in late Jan and their F2015 EPS ex- the beat does not move up. Net/net, Apple Pay + Watch expands the narrative but an elongated 6/6+ tail will have to key further EPS increases from here.
  • Mizuho believes, although slightly better than expected, upside from iPhone and its continued momentum is largely priced in. While opportunity to further penetrate the user base and attract new users will likely help shipments, tough compares created by current quarters could make it harder for the continued upside surprise that is required for the stock to work. Additionally lack of significant margin leverage could act as a headwind for the stock. At the current level, risk-reward seems to be well-balanced; Neutral ($115 tgt).
  • RBC notes Apple reported blow out numbers. In addition, gross margins overcame 100bps of FX headwinds and was above the high-end of guidance at 39.9% (high end of guide at 39.5%). Looking forward they still see multiple catalysts on the horizon: 1) Apple Watch: will begin selling in April of 2015, 2) Capital Allocation: with additional cash on its books we see upside to dividends and buybacks, 3) Apple Pay: continued penetration of contact-less payment processing and 4) Corporate Penetration: by expanding its presence in the Enterprise they see potential upside iPad, iPhone and Mac products.
  • Oppenheimer notes Apple's F1Q15 shattered heightened Street expectations. They believe that their thesis on AAPL is playing out, that AAPL's ecosystem will drive share gain over OEMs focusing on specs. They see record level new customers, Android switchers and growth in China as strong support for their thesis. They expect Apple to keep beating exp. in coming quarters as new products and services grow in 2015 to strengthen its ecosystem.
  • Monness Crespi & Hardt raises their AAPL tgt to $125 from $115 based on their revised estimates, iPhone 6 momentum, Apple's entry into the fast-growing Phablet market, the launch of its mobile payment platform (Apple Pay), and entering a new product market in wearable technology with Apple Watch in April.
  • Stifel notes iPhone sales in China were up 2x yr/yr (~12-14M iPhones) w/total BRIC growing 97% yr/yr. Apple noted that iPhone 6/Plus penetration stands in the low / mid-teens as a % of the total iPhone subscriber base. In addition to iPhone momentum / upside, which some are likely to debate as being somewhat anticipated, believe the company strong GM% at 39.9% and F2Q15 guide at 38.5%-39.5% (including a 100 bps FX headwind) should be viewed as an incremental positive; $130 tgt.
  • Additional target raises:
    • JP Morgan to $140 from $112
    • BMO to $130 from $123
    • Cantor tgt to $160 from $143
    • Goldman to $130 from $124
    • Bernstein to $135 from $122
    • Deutsche Bank to $110 from $102
    • Susquehanna to 145 from 135

Reuters - Adidas CEO vows to stay on, admits mistakes

The long-serving chief executive of Adidas (ADSGn.DE) has no intention of stepping down despite criticism as the German sportswear company loses ground to U.S. rival Nike (NKE.N), he told a German newspaper.

"If I no longer had the ambition and the energy, and the firm belief that I can bring the company further forward, then I would stop immediately," Herbert Hainer was quoted as saying by the Sueddeutsche Zeitung daily.

Hainer, who has been CEO since 2001, had his contract extended until 2017 last year to allow the company to work on a succession plan, but some investors have suggested a change at the top should come sooner.

Hainer admitted he had made mistakes, such as rolling out too many new golf products just as the market was contracting, but said he had been surprised by the personal criticism after a series of profit warnings.

"Suddenly, everything that was right for 12 years, was wrong," he told the newspaper.

Hainer said the world's second-biggest sportswear group was fighting back, launching the biggest marketing campaign in the company's history in February with a particular focus on the key U.S. market, even if "there are no overnight solutions there".

Adidas last week reported a better-than-expected rise in 2014 sales as it announced the sale of its Rockport shoe brand.

Helped by the 2014 soccer World Cup and the victory of the German team Adidas sponsors, Hainer said soccer sales had reached a record 2.1 billion euros ($2.4 billion), ahead of his 2 billion target.

>>> Boeing beats by $0.21, beats on revs; guides FY15 EPS below consensus, revs

Boeing beats by $0.21, beats on revs; guides FY15 EPS below consensus, revs above consensus

Reports Q4 (Dec) earnings of $2.31 per share, excluding non-recurring items, $0.21 better than the Capital IQ Consensus Estimate of $2.10; revenues rose 2.9% year/year to $24.47 bln vs the $23.9 bln consensus. Co issues mixed guidance for FY15, sees EPS of $8.20-8.40, excluding non-recurring items, vs. $8.65 Capital IQ Consensus Estimate; sees FY15 revs of $94.5-96.5 bln vs. $93.37 bln Capital IQ Consensus Estimate.

Additional 2015 Outlooks In billions except per share data:
  • Operating cash flow is expected to be greater than $9.0 billion.
  • Commercial Airplanes
    • Deliveries 750 - 755
    • Revenue $64.5 - 65.5
    • Operating Margin 9.5% - 10.0%
  • Defense, Space & Security (revised for business realignment)
    • Revenue Boeing Military Aircraft ~$12.5
    • Network & Space Systems ~$8.0
    • Global Services & Support ~$9.5
    • Total BDS Revenue $29.5 - 30.5
    • Operating Margin
      • Boeing Military Aircraft ~9.5%
      • Network & Space Systems ~9.0%
      • Global Services & Support ~11.0%
    • Total BDS Operating Margin 9.75% - 10.0%
  • Boeing Capital
    • Portfolio Size Stable
    • Revenue ~$0.3
    • Pre-Tax Earnings ~$0.05
    • Research & Development ~ $3.5
  • Capital Expenditures ~ $2.8
  • Pension Expense ~ $2.1
  • Effective Tax Rate ~ 30.5%