Morning @ Cantor
Morning @ Cantor 6/18
Today’s Stories From Cantor Fitzgerald
Sal Catrini (908) 517-5067
***Sal Catrini is out today. He will return on Monday
EARLY US LANDSCAPE****
· US Stock Futures S&P down 3 pts, Crude down 1.18, Dollar slightly up vs Euro, but the Euro is still Set for Largest Weekly Gain in Year as Debt Concerns Ease- BBG
· GOLD held steady near an all-time high on Friday after a rise in physical gold holdings supported by a weaker dollar and persistent worries about Europe's fiscal outlook- Reuters
· Rates tick lower…rates continue to tick downward on yesterdays rise in Jobless claims and fall in consumer prices- BBG
· European Markets: FTSE 100: +0.41%; DAX: +0.08%; CAC 40: +0.18%
o European markets are pulling back from earlier gains led by declines from the drugmakers, led by Sanofi.
· Asian Markets: Nikkei (0.07%); Hang Seng +0.75%; Shanghai Composite (0.54%)
o Markets ended mixed. Hong Kong rose on easing worries about Europe. Gains in materials, energy, and financial plays led Australia higher, while concerns about the US economic recovery and a stronger yen held Japan flat. China dropped on worries about banks’ fund-raising when Bank of China’s convertible bonds fell below book value on their first day of trade- SA
· Euro Data
o Japan Cabinet Jun Economic Report: Raises economic assessment for the first time in three months
o UK May Public Finances: £12.0B v £20.5Be; Net Borrowing: £16.0B v £18.0Be
· US Borrowing Fears: Greenspan Says U.S. May Soon Reach Borrowing Limit- BBG
· UK Deficit: U.K. Posts Smaller-Than-Expected Budget Deficit in May- BBG
· Britain posted a smaller fiscal deficit than economists forecast as growth lifted tax receipts, providing a boost for finance minister George Osborne before his June 22 budget
· : Spain announces more bond sales to come- TTN
· Spain announced that it would sell a new benchmark 10-year Bono via syndicate in Q3 and planned to sell 5regular bond auctions during that period
· QUAD WITCHING: Today is a quad witching day
· China: PBoC adviser Xia Bin warned that the economy is likely to slow in the second half of the year but urged further measures to discourage speculation in the property sector such as a home transaction tax- TTN
· China Inflation: Xia Bin said price pressures may rise in June/July, but overall will not be substantial for the year- fxStreet.com
· China: China's economy 'continued to grow robustly' in the first half of this year but has shown signs of 'some softening' that could slow growth slightly in 2011- World Bank- Telegraph
· 'We project GDP [gross domestic product] growth of 9.5 per cent for 2010 and 8.5 per cent for 2011, with risks both ways,'
· China: Almost 60% of Chinese say consumer prices are too high, survey shows- Xinhua
· Inflation: Taiwan's top laptop maker raising China wages- AP
· Compal Electronics said that China's labor shortage and rising wages will pose a big challenge to it amid the recovery in the computer market
· instead of moving to lower-wage countries, Compal will increase the wages of its Chinese workers and try to improve their working environment
· Russia: President Medvedev stated that the forecast for the country's 2011 budget deficit to GDP ratio was at 4% and move lower to 3% in 2012- TTN
· Mild form of protectionism to replace liberalism, and could return to discussion of tax cuts for business in coming years depending on economic conditions
· USD vs Yuan: President Medvedev commented that it would continue talks with China on alternative reserve currencies. He did note that the USD was the strongest reserve currency at this time but discussed full Yuan currency convertibility- TTN
· Japanese Yen: Bank of Japan May meeting minutes most notably warned that the strength of the Yen due to the European fiscal crisis bears close monitoring- fxStreet.com
· Japan to merge Exchages: The Japanese government has unveiled a proposal to merge the country’s major exchanges by 2013 in a bid to make the bourses more competitive regionally and attract more funds.- FT
· EU Stress Tests: E.U. Agrees to Publish Results of Stress Tests on Biggest Banks- NYT
· The European leaders, meeting in Brussels, also renewed their pledge to press for a banking levy and a possible transaction tax at the global level
· http://www.nytimes.com/2010/06/18/business/global/18stress.html
· EU Stress Tests: EU Stress Tests Face Questions Over Stringency, Government Help- BBG
· The European Union’s decision to publish the results of stress tests on the region’s lenders was welcomed by shareholders seeking more transparency. Investors still want to know how tough the terms of the tests will be
· G-20: EU to Push Levies on Banks, Financial-Transaction Tax at G-20- BBG
· Japan Tax: both PM Kan and Fin Min Noda said the cabinet will seriously consider revising the tax code with a higher consumption levy - 10% v current 5% - and lower corporate tax rates- TTN
· Mining Tax: Key components of Australia’s planned “super profits” tax on mining companies will be dumped by the government- West Australian
· The government, intent on keeping a 40 percent tax rate for the resource super profits tax and applying it to existing projects, is poised to axe the idea of underwriting losses in failed mining ventures
· The government is planning to “significantly” lift the threshold at which the 40 percent tax kicks in, from a planned 6 percent now
· Iceland: UK may try to stop Iceland joining EU over bank collapse refund- Guardian
· Autos: GM and Toyota to ramp production- NYT
· China Labor/Autos: Toyota was hit with another labor strike in the China- Reuters
· Labor Unrest: Union prepared for lengthy strike at BT- FT
· Labor Unrest: Top Senator Sees Little Chance for FedEx Unionization Proposal- WSJ
· Proposed U.S. legislation to make it easier to unionize at FedEx Corp. has no chance of clearing Congress, a top Senate Democrat said Thursday
· Senate Blocks Tax/Jobs bill- Reuters
· A Democratic bill to extend jobless benefits and raise taxes on investment fund managers failed a key vote in the Senate on Thursday, dealing a blow to President Barack Obama's push to boost the economy
· http://www.reuters.com/article/idUSTRE65F7EG20100618?
· Fed Speak positive: Fed’s Kohn Expects Europe to ‘Make it Through’ Trouble, WSJ Says
· NYC jobless rate falls for fifth straight month- NYPOST
· New York City is bucking the gloomy trend in hiring by posting its best employment outlook in nearly a year.
· Fed reports balance sheet assets
· http://www.federalreserve.gov/releases/h41/Current/
· Crisis Watch: Kyrgyz leader flew to turbulent south to ease tensions, vows refugees will return- Reuters
· Crisis Watch: Europe could face hundreds of Iranian missiles: Gates- Reuters
· Tech: Facebook '09 revenue neared $800 million- Reuters
· Tech: North American Semiconductor Equipment Industry Posts May 2010 Book-To-Bill Ratio of 1.12
· Telecom: VZ Verizon May Follow AT&T’s plan to eliminate unlimited data BBG
· Heatlhcare: Sanofi Says Recent Lantus Study Is ‘Unclear, Lacks Precision- BBG
· Broadband Regulation: Regulators take step toward regulating high speed internet- Reuters
· http://www.reuters.com/article/idUSTRE65G47C20100617?type=technologyNews
Money Raising:
· Two IPOs rise, one delayed as U.S. stocks drop- Reuters
o Shares in oil and natural gas exploration company Oasis Petroleum (OAS.N), the largest deal of the week, rose 6.4 percent above their IPO price to $14.89 on the NYSE early Thursday afternoon.
o Higher One Holdings Inc (ONE.N), which provides banking services to colleges and college students, climbed 18 percent ahead of its IPO price to $14.05, also on the NYSE
· CIL China Intelligent prices below range. China lighting 3.35m share IPO priced at $3: Price Talk $4-5
· MOTR Motricity cuts sice, prices below the range. MOTR’s 5m share IPO priced at $10: Price Talk $14-16
· C Citigroup Looking Past Volcker May Seek $3 Billion for Funds- BBG
· HSBC Holdings chairman says Shanghai listing unlikely for 2010 – Reuters
· Royal Mail chairman looks at IPO within three years – FT
· Porsche says needs at least a €2.5B capital increase to secure liquidity beyond Jun 2011
M&A:
· "Volcker rule" seen freezing M&A by U.S. mega-banks- Reuters
o Further growth through M&A would be blocked for Bank of America, JPMorgan Chase, Citigroup and Wells Fargo, said Barclays Capital analysts
o International deals could still be possible for the mega-banks, however, depending on how the rule is applied and which liabilities are counted
o http://www.reuters.com/article/idUSTRE65G61F20100617
· LNC WSJ Deals Blog wonders whether Lincoln National will sell
· DIS Negotiations for Miramax continue - LA Times
· Fiber-optic networks attempt to sell themselves – WSJ
· RBS: Banco Santander confirms offer for approx 300 UK branches of Royal Bank of Scotland
BP stories:
· Russia's LUKOIL not interested in BP asset sale- reuters
· Apology to BP's Hayward triggers uproar- Reuters
o A Republican U.S. representative apologized to BP CEO Tony Hayward on Thursday, saying BP was victim of a White House "shakedown" by having to set up a $20 billion Gulf oil spill fund, a comment that angered both Democrats and Republicans.
o http://www.reuters.com/article/idUSTRE65G42D20100617?type=politicsNews
· BP considers successors for Hayward- FT
o As Tony Hayward defended BP’s actions over the Deepwater Horizon oil spill before a panel of the US Congress on Thursday, he was battling for his own future as much as for that of his company.
o The most likely contenders are Bob Dudley, managing director overseeing the Americas and Asia, and Iain Conn, who runs BP’s refining and marketing arm
o http://www.ft.com/cms/s/0/53abba58-7a42-11df-aa69-00144feabdc0.html
· BP Bond Deal Would Be Challenging- Fox Business
o some bankers say one of the ways BP would like to raise money — and prove to the markets it can survive — is through a large bond sale, which bankers are telling BP might be difficult to pull off primarily because the company would have to pay a large premium to investors to buy its debt
o http://www.foxbusiness.com/story/markets/industries/energy/bp-bond-deal-impossible-likely/
· WSJ looks at BP CEO Tony Hayward's testimony on Capitol Hill yesterday
Financial Reform:
· MET MetLife CEO blasts U.S. financial reforms – FT
o The financial reforms being finalised in the U.S. Congress are too bank-centric and could have negative unintended consequences on the insurance sector
o The CEO of the biggest U.S. life insurance company said some measures in the proposal betray a total misunderstanding of the insurance industry and could hit the sector hard as it failed to take into account the needs of insurance companies.
o http://www.reuters.com/article/idUSSGE65H0B020100618
Iran stories:
· Crisis Watch: Iran Highest Security Panel Warns of ‘Retaliation’ for Sanctions- BBG
o Iran’s High Commission for National Security responded to UN nuclear sanctions approved June 9, calling them “illegal” and warning of “retaliation” for any actions against Iranian interests as a result of the UN measures
Economics:
o No Major Economic Data scheduled for today
TODAY’S BIG STORIES
· Bank Of Spain Warns Of Possible Bank Liquidity Squeeze- WSJ
· Bank of Spain Deputy Governor Javier Ariztegui warned members of the Spanish parliament of a potential liquidity squeeze for the country's banks if wholesale financing markets remain closed in the coming months
· http://online.wsj.com/article/BT-CO-20100618-701696.html?mod=WSJ_latestheadlines
· Santander May Be Top Bank In Eu Stress Tests- MarketWatch
· Spain's Banco Santander and BBVA may be rated the two healthiest banks in Europe when the European Union publishes the results of "stress tests" in the coming weeks, while analysts say Germany's unlisted landesbanks could be among the weakest
· ECB must buy 'hundred of billions' of bonds to tame Europe's debt crisis- Telegraph
· Fitch Ratings has warned that it may take massive asset purchases by the European Central Bank to prevent Europe's sovereign debt crisis escalating out of control.
· The ECB agreed to start buying Greek, Portuguese, and Irish bonds in April to help buttress the EU's `shock and awe' package, known as the European Financial Stability Facility.
· Investor optimism way down on China and energy- Asian Investor
· Investors' growth expectations look to be 'double-dipping', with optimism on the Chinese economy at its lowest since January 2009 and expectations on global growth and corporate profits at their lowest since March 2009
· http://www.asianinvestor.net/News/215673,investor-optimism-way-down-on-china-and-energy.aspx
· UK may try to stop Iceland joining EU over bank collapse refund- Guardian
· Iceland was put on a fast track to join the European Union today, but the Cameron government served notice that it could block the country's membership unless it settled the £2.3bn Britain says it is owed as a result of the country's financial collapse two years ago
· http://www.guardian.co.uk/business/2010/jun/17/uk-threat-block-iceland-eu
· Clinton says Ariz. to be sued over immigration- Washington Post
· In a June 8 interview with an Ecuadorean television station, Clinton said the department, under President Obama's direction, "will be bringing a lawsuit" over the measure. A video of the interview was distributed Thursday by the American Civil Liberties Union, which urged the administration to go to court
· N.Y. lawmakers defend Wall Street- Politico
· After months of taking an unusually low public profile as the financial industry turned into a punching bag for Congress, New York lawmakers are beginning an 11th-hour lobbying effort to blunt tough new regulations on Wall Street.
· House lawmakers and Mayor Michael Bloomberg issued a series of stern letters this week staking out a position that’s been politically risky amid the populist anger toward financial firms: Back off the big banks.
· http://www.politico.com/news/stories/0610/38703.html#ixzz0rCOTMXiq
· BOJ’s Shirakawa Sees Chinese Bubble Risk as Economy Strengthens- BBG
· Bank of Japan Governor Masaaki Shirakawa told policy makers today that China’s strengthening recovery is spurring concern that the economy is in a bubble
· Shirakawa said Chinese authorities are addressing the risk of overheating
· China Labor: Honda’s China Strikes Highlight Bidding War for Factory Workers- BBG
· Workers at a Honda Motor supplier in Zhongshan, China, went on strike June 9 demanding higher wages, yet it was employees at a maker of electric fans and gas stoves three kilometers (1.9 miles) away that got a pay raise.
· Xiaotian Industrial decided to boost pay because “living costs are higher now and it should help relieve some pressure on labor shortages,”
· Meanwhile The strikers didn’t see a wage hike before the 3PM deadline today
· Switzerland agrees to break bank secrecy laws- Telegraph
· The two houses of parliament have struggled to agree but on Thursday, at the final attempt, the vote was passed. Swiss tax authorities will now be able to hand the details of 4,450 UBS clients to the US in return for immunity from potentially ruinous prosecution against the bank
· CPB Campbell Soup recalls 15M pounds of SpaghettiOs- AP
· U.S. Won’t Lift Deepwater Drilling Ban, Lawyers Say- BBG
· The six-month moratorium on deepwater drilling ordered in the wake of the Gulf of Mexico oil spill is essential to ensure public safety and shouldn’t be lifted, U.S. regulators said yesterday
· Lawmakers Expand Fed Disclosure- BBG
· U.S. House and Senate lawmakers agreed to require greater disclosure on actions by the Federal Reserve and to drop plans to make the New York Fed president a political appointee
· Negotiators on an overhaul of financial legislation amended the bill to reduce the role of commercial banks in naming Fed presidents in Washington yesterday
· Always watching: Supreme Court rules on employer monitoring of cellphone- WP
· In the first ruling of its kind, the justices said they have the right to look over the shoulders of workers, as long as there is a "legitimate work-related purpose" to monitor them
· But the court said it would proceed cautiously in deciding how far an employer can go in searching the "electronic sphere" that has become an inescapable part of the modern workplace
· BAC BofA Seeks ‘Edge’ With Merrill beginning online brokerage- BBG
· Bank of America’s Merrill Lynch will let customers trade stocks, mutual funds and options online starting June 21, through Merrill Edge
· “It’s an integrated bank and brokerage offering” that will compete with companies such as SCHW Charles Schwab and closely held FIS Fidelity Investments
· US official calls for Kyrgyzstan investigation- CNN
· A U.S. official on Friday called for a "substantial" investigation into the killings of more than 170 people during recent ethnic clashes in Kyrgyzstan
· Generic Healthcare: Philippine Price Controls Hamper Rise of Generics- WSJ
· The Philippines recent embrace of drug-price controls to lower the cost of life-saving medications is creating some unexpected problems—including crimping the supply of inexpensive generic drugs
· Wireless carriers could be forced to ‘unlock’ phones- Globe and Mail
· Large wireless service providers in Canada should be forced to “unlock” subscribers’ cellphones if requested, says a bill being tabled by the NDP on Thursday, which could dent carriers’ profits and lead to subscribers moving more easily between cellphone companies
· National Labor Relations Board decisions were illegal- WP
· Hundreds of recent federal rulings in disputes between unions and employers could be reopened after the Supreme Court said on Thursday that it was illegal for the National Labor Relations Board to decide the cases with only two sitting members.
· Online shopping: Retail chains are embracing their online stores- LATimes
· When shoppers at JCPenney Co. stores can't find what they want, sales clerks are steering them to the Internet — not at their home computers, but at new online kiosks right inside the stores.
· http://www.latimes.com/business/la-fi-online-retail-20100618,0,5722460,full.story
COMPANY NEWS WITH MACRO IMPLICATIONS
· Stocks mentioned on CNBC's Mad Money with Jim Cramer - TheStreet.com
· + AAPL, SKX, LINE, NFLX, C, IBM, EVEP, KMP and HOTT
· - COV, GLW, XOM and RIMM
TMT
· North American semiconductor equipment industry posts May book-to-bill ratio of 1.12 vs 1.13 in April
· CSCD Cascade Microtech names Michael Burger CEO
· DELL, HPQ ISI Group initiates; Hewlett-Packard initiated buy with $60 target; Dell initiated hold with $15 target
· AAPL Apple initiated buy at ISI Group; target is $320.
· SMOD SMART Modular Technologies reports Q3 non-GAAP EPS
· BSY British Sky Broadcasting initiated buy at KBC
· Canadian wireless service providers could be forced to unlock subscribers' cellphones on request - Globe and Mail
· BRCM Broadcom to acquire Innovision Research & Technology for 35p/share in cash- (PR)
· CTCM CTC Media upgraded to buy from neutral at UBS
· CSCO Cisco Systems, Tencent Holdings sign MOU to partner to build communications-based platform for businesses in China - TMCNET
· Fiber-optic networks attempt to sell themselves - WSJ
· DIS Negotiations for Miramax continue - LA Times
· MOT Motorola's split-up plans becoming clearer - WSJ
· CDNS Cadence Design completes acquisition of Denali Software - PR
MINERS/STEEL etc
· MDW Midway Gold Corp updates Pan gold resource
· URRE Uranium Resources intends to offer up to 25M shares of common stock in an underwritten public offering through Roth Capital
INDUSTRIALS/ HOMEBUILDERS
· BA Boeing 787 Dreamliner passed 1K hours of testing yesterday- (PR)
· GMR General Maritime 30.6M share secondary priced at $6.75 a share through Goldman, Dahlman Rose, Jefferies and JPMorgan
· WTS Watts Water confirms plans to acquire Austroflex
· FDX Senate Commerce Committee Chairman Rockefeller tells WSJ FedEx unionization proposal unlikely to pass
· GPK Graphic Packaging announces closure of Golden, CO plant
· TPC Tutor Perini Corporation awarded three contracts totaling $467M
· KAMN Kaman Corporation guides Q2 EPS
· SATC SatCon Technology enters into $12M subordinated debt facility with Horizon Technology Finance
ENERGY
· BP BP Chairman Svanberg seeking advice on candidates to replace CEO Tony Hayward - FT
· CVA Covanta Holding declares special cash dividend of $1.50 a share and announces $150M increase to buyback program; reaffirms 2010 guidance
· EQU Equal Energy increases previously announced bought deal financing size to $35.1M vs prior size of $25M
· BP Advisors tell BP that bond sale would be "challenging" - Fox Business
· EPB El Paso Pipeline Partners announces 10M common unit secondary offering through Barclays, BofA Merrill Lynch, Wells Fargo, JPMorgan, and Morgan Stanley
· SU Suncor Energy has received approval for its tailings management plan from the Energy Resources Conservation Board
· EQU Equal Energy announces $25M bought deal financing through Wellington West Capital
· BP BP downgraded to hold from buy at UniCredit
· BP BP upgraded to buy from hold at Societe Generale
· RDSA Royal Dutch Shell prepares for more intense attention to safety from authorities in Nigeria - FT
FINANCIALS
· STI SunTrust Banks continues to review its strategic options for portions of the institutional management businesses of subsidiary RidgeWorth Capital – (PR)
· AMG data reports equity fund inflows of $11.4B in w/e 16-Jun vs outflows of ($2.8B) in w/e 9-Jun
· ABK Ambac Financial announces debt for equity exchange transactions
· LNC WSJ Deals Blog wonders whether Lincoln National will sell
· BANR Banner files $150M equity secondary offering through D.A. Davidson
· Fed reports balance sheet assets of $2.35T on Wednesday, +$12.8B w/w and +$273.5B y/y
· BANR Banner files S-3MEF; registers additional $22.5M of mixed securities to previously filed $150M mixed shelf
· AMNB American National Bankshares CEO Charles Majors named Chairman of the Bank
· TCAP Triangle Capital invests $5.3M in Library Systems and Services
· C Citi to increase branches in South Korea by 20% - WSJ
· Japanese government plans to merge country's stock exchanges by 2013 - FT
· EU to publish results of stress tests on 25 cross-border banks - NYT
· AIG China Strategic, Primus Financial may lose Chinatrust Financial as partner in bid for Nan Shan Life - South China Morning Post
REAL ESTATE
· MPW Medical Properties Trust acquired the real estate of three inpatient rehabilitation hospitals in Texas for an aggregate purchase price of $74M- (PR)
· HCP HCP announces 12.0M share secondary offering through BofA Merrill Lynch
· NLY Annaly Capital increases quarterly dividend by 4.6% to $0.68 from $0.65
· CXS CreXus Investment increases quarterly dividend by 71.4% to $0.12 from $0.07
· VNO Vornado Realty Trust bids for CW Financial - Bloomberg
CONSUMER
· NPD China Nepstar upgraded to neutral from sell at Goldman Sachs; target decreased however to $3.30 from $5.80.
· WINN Winn-Dixie to distribute 6.8M shares of common stock
· PEP PepsiCo enters into new 1-year unsecured revolving credit agreement allowing for borrowings of up to $2.575B
· SLE, PG EU Commission approves proposed acquisition of Sara Lee Air Care by Procter &
· BKS, ZUMZ LA Times looks at retailers' efforts to capitalize on online sales
· COST Costco seeks to privatize liquor sales in Washington state - WSJ
GAMING, LODGING, & LEISURE
· IGT Barron's Weekday Trader is positive on International Game Technology
· GTTI Game Trading Technologies files 4M share secondary offering
·
HEALTHCARE
· TEVA Teva Pharmaceutical admits to making false statements in US Gianvi label and agrees to corrective measures
· NVS FDA approves new indication for Novartis's Tasigna
· DXCM DexCom initiated outperform at Wedbush Securities; target is $16.
· SQNM Sequenom names Paul Maier CFO
· TSPT Transcept Pharmaceuticals files $75M mixed shelf
· ADLR Adolor provides clinical update; trial did not meet primary endpoint; conference call at 16:45 ET: (866) 700-6293 or (617) 213-8835; passcode 81520857.
· GPRO Gen-Probe makes $50M strategic investment in Pacific Biosciences- street Insider
· ALKS Alkermes announces notification of tentative FDA Advisory Committee meeting to review Vivitrol for opioid dependence
· Unintended consequence: Price caps in Philippines interfering with supply of generic drugs -
· NVS Novartis says new phase II data shows canakinumab reduced acute flares in gout patients
From our EU/London desk
o
Oils
o BP (+4.5%). Tony Hayward received a rough ride from US Lawmakers yesterday evening, no new shocks though. Company downgraded to hold from buy by Unicredit, but upgraded to Buy from Hold by Soc Gen.
o Saipem (+1%). Wins $900m contract to build a gas pumping station in Kuwait.
o Transocean (+5%) Enters the SMI.
o Essar Energy (+3.8%). Enters FTSE 100.
o Lamprell (+6.9%). Company wins $129m contract from Seajacks 3 Ltd.
Miners
· African Barrick Gold (1.1%). Enters FTSE 100.
TODAY’S EVENTS
CONFERENCES
Friday June 18:
o Bank of America Merrill Lynch India Investor Forum - London - Jun 17, 2010 - Jun 18, 2010
o Citi Hong Kong and China Mini Conference - Jun 17, 2010 - Jun 19, 2010
o Euroconvention The Moldova Business and Investment Summit - Jun 10, 2010 - Jul 10, 2010
o Institute for International Research Telecoms Cloud Services Summit - Jun 17, 2010 - Jun 18, 2010
o IPAA’s Midyear Meeting - Jun 16, 2010 - Jun 18, 2010
o Opal Financial Group Investment Trends Summit - Jun 16, 2010 - Jun 18, 2010
o P. E. Schall GmbH & Co. KG OPTATEC Forum - Jun 15, 2010 - Jun 18, 2010
o Richmond Events, Inc. PIMS Forum - Jun 16, 2010 - Jun 19, 2010
o Santander Central Hispano Telecommunications Conference
· ERIC
o Singapore Exhibition Services BroadcastAsia Exhibition & Conference - Jun 15, 2010 - Jun 18, 2010
o Singapore Exhibition Services' CommunicAsia: International Communication & Information Technology Exhibition & Conference - Jun 15, 2010 - Jun 18, 2010
o The Center for Business Intelligence Aseptic Processing, Cleaning Validation, Environmental Monitoring Conference - Jun 16, 2010 - Jun 18, 2010
COMPANY MEETINGS/OTHER DAILY EVENTS
· Friday June 18:
o Shareholders meetings:
§ SAI, AMIC, DXPE, HL, ICGE, TORM, POWI, TV, SPPI, DNE, GPOR, ORIT, INUV
ECONOMICS
· Friday June 18:
o No Major Economic Data scheduled for today
EARNINGS
o Consumer/Retail/Education
· Friday June 18: CLRH
o Financials
· Friday June 18: DFS
o Healthcare
· Friday June 18: CO, COPY, DRAM
o Gaming, Lodging, & Leisure
· Friday June 18: CCL
o Energy
· Friday June 18: ALME
INVESTMENT BANKING WRAP
M&A
· Fiber Networks Go on the Block- WSJ
o A decade ago, dozens of companies rushed to build fiber-optic networks, envisioning a new era of high-speed telecommunications. They overbuilt, triggering a string of bankruptcies and wasting billions
o Now, amid a surge in broadband Internet use, demand is finally catching up with supply. At least three privately owned operators of fiber-optic networks have put themselves on the block in recent weeks, hoping to fetch hefty prices
· Russia's LUKOIL not interested in BP asset sale- reuters
o LUKOIL (LKOH.MM), Russia's second-largest oil producer, said it was not interested in snapping up anything from the $10 billion asset sale with which BP (BP.L) hopes to help pay for its oil spill in the Gulf of Mexico. "We are not wolves, we do not eat the weak," they said
o http://www.reuters.com/article/idUSLDE65H06P20100618
· Total looking into possibility of joint projects with Lukoil in Russia- Reuters
· PG P&G wins EU approval to buy SLE Sara Lee's air care unit- Reuters
o U.S. household goods company Procter & Gamble (PG.N) has won EU regulatory approval for its $470 million takeover of Sara Lee (SLE.N) air care unit Ambi Pur to boost its presence in Europe and Asia
o http://www.reuters.com/article/idUSBRQ00989020100618
· Buyout firms face investors or risk being frozen out- Reuters
o A growing group of private equity firms are priming lukewarm investors to expect requests for new funds later this year, having run out of money -- and time -- to invest in new deals
o http://www.reuters.com/article/idUSTRE65G3MQ20100617?type=innovationNews
· DIS: Ron Tutor and David Bergstein keep negotiating for Miramax- LATimes
o The exclusive 10-day negotiating window between Disney and construction magnate Ron Tutor and his movie-business partner David Bergsten for the acquisition of Miramax Films expires tonight, and the parties continue to talk
o The Weinsteins are waiting in the wings, ready to jump back in if the talks with Tutor and Bergstein derail. The Burkle-Weinstein negotiations went off track when the bidders tried to lower the price to $565 million from $625 million
o http://latimesblogs.latimes.com/entertainmentnewsbuzz/2010/06/disney-miramax-tutor-bergstein.html
· Extended Stay plan with Centerbridge moves forward- Reuters
o Bankrupt hotel chain Extended Stay moved a step closer to exiting bankruptcy on Thursday after a U.S. judge approved the results of its auction and said he would likely enter as an order the disclosure statement that will go to creditors for a vote.
o The disclosure statement includes details of a plan in which Extended Stay will emerge from bankruptcy in the hands of Centerbridge Partners, Paulson & Co and Blackstone Group (BX.N), which agreed to pay $3.925 billion for it in a recent auction.
o http://www.reuters.com/article/idUSN1725971220100617
· UAUA/CAL United merger execs cite foreign, low-cost threats- Reuters
o United Airlines and Continental Airlines need to merge to be profitable in competing with low-cost and foreign carriers, executives of the two U.S. major airlines said on Thursday.
o http://www.reuters.com/article/idUSN1725618620100617
· Henderson drops talks to buy STI SunTrust assets- Reuters
o Anglo-Australian asset manager Henderson said it had pulled out of talks to buy fund boutiques from U.S. bank SunTrust, frustrating the firm's efforts to boost exposure to American institutional investors
o http://www.reuters.com/article/idUSLDE65H08T20100618
· The WSJ discusses The New Case for Selling LNC Lincoln National
o The life insurer is facing “Abe’s Conundrum” as it seeks diversification, and may find a sale to be its best option, one analyst wrote yesterday
o http://blogs.wsj.com/deals/2010/06/17/the-new-case-for-selling-lincoln-national/
· US probe halts sale of Dubai World's ISS- Reuters
o A U.S. investigation has halted the sale of Inchcape Shipping Services (ISS), the first Dubai World business put up for sale since the emirate's debt crisis began
o http://www.reuters.com/article/idUSLDE65G27Z20100617
· AMGN Amgen CEO looking for international acquisitions- Reuters
o "We will take a risk in acquisitions, but it will be a measured risk. It sure won't be a bet-the-company risk,"
o http://www.reuters.com/article/idUSN1724733920100617
· BRCM Broadcom to buy UK's Innovision for 32 mln stg- Reuters
o U.S. chipmaker Broadcom Corp (BRCM.O) offered to buy Innovision Research and Technology (INNV.L) in a cash deal that valued the British mobile-phone chipmaker at about 32 million pounds ($47.4 million), to strengthen its wireless connectivity business
· KDIC offers $103 mln Hynix shares in block deal- Reuters
o State-run Korea Deposit Insurance Corp (KDIC) has offered 4.41 million shares in Hynix Semiconductor Inc in a block deal worth $103 million
o http://www.reuters.com/article/idUSTOE65G05Y20100617
· AEG, music labels in talks over minority equity stake- NYPOST
o Amid a slowdown in the concert business, AEG Live, the second-largest live entertainment company in the world, is talking to the major music companies about taking a minority stake in the business, The Post has learned
o http://www.nypost.com/p/news/business/concert_ed_effort_tml3BoAEyiaA0qELdwullN#ixzz0rCBSqPXZ
· WWWW Web.com acquires Register.com- reuters
o Web.com Group Inc (WWWW.O) said it agreed to acquire privately-held domain name registration provider Register.com for $135 million
o http://www.reuters.com/article/idUSSGE65G0GA20100617
· Russia's WBD eyes foreign acquisitions in dairy- Reuters
o Russian juice and dairy maker Wimm-Bill-Dann (WBD.N) plans acquisitions in the dairy and baby food sectors abroad this year
o http://www.reuters.com/article/idUSLDE65H05720100618
· WBD ready to buy back its stake from Danone- Reuters
o Wimm-Bill-Dann is ready to buy Danone's stake in the company if the French firm offers, Sergei Plastinin, head of WBD's board of directors, told Reuters on Friday. "Wimm-Bill-Dann would be happy to buy this stake from Danone if such an opportunity, and thus Danone's desire to sell it, arose
o http://www.reuters.com/article/idUSLDE65H0IU20100618
· KFN KKR to buy Usen unit in first major Japan deal- Reuters
o Kohlberg Kravis Roberts & Co said it would buy Intelligence Ltd, a unit of cable broadcaster Usen Corp , for 32.5 billion yen ($357 million), making it the private equity giant's first significant deal in Japan
o http://www.reuters.com/article/idUSN1726864220100618
· RCOM may sell tower, fibre optic biz to RIL- Times of India
o The country's second-biggest mobile operator Reliance Communications is said to be in advanced talks with Reliance Industries to sell its fibre optic cables and telecom tower businesses
· Gabon to tale stake in France's Eramet- Reuters
o Gabon has agreed to buy a stake in French mining group Eramet and to raise its holding in their joint local manganese miner Comilog to around 35 percent from 25 percent,
o http://af.reuters.com/article/metalsNews/idAFLDE65G02G20100617
· Funds' bid for Nan Shan hangs in balance- SCMP
o China Strategic Holdings and Primus Financial Holdings, the Hong Kong funds that have battled stiff political opposition since last autumn to the completion of their US$2.15 billion takeover of AIG's Taiwan unit Nan Shan Life, now face uncertainty over whether they can keep their Taiwanese investment partner
· Uganda firm on $360m Heritage Oil tax bill- FT
o Uganda is insisting that Heritage Oil, the UK-listed oil explorer, must agree to pay $360m in capital gains tax on the “super profits” it will make on a $1.35bn oil fields sale, before it will sanction the deal
o http://www.ft.com/cms/s/0/8fc85728-7a45-11df-aa69-00144feabdc0.html
· VNO Vornado Realty Said to Make Bid for Loan Servicer CW Financial- BBG
o Vornado Realty Trust submitted a bid to buy CW Financial Services, the parent of the second-largest manager of delinquent U.S. commercial real estate loans
o A winner for New York-based CW Financial may be selected in the next w
$ RAISING
IPOs
· Two IPOs rise, one delayed as U.S. stocks drop- Reuters
o Shares in oil and natural gas exploration company Oasis Petroleum Inc (OAS.N), the largest deal of the week, rose 6.4 percent above their IPO price to $14.89 on the New York Stock Exchange early Thursday afternoon.
o Higher One Holdings Inc (ONE.N), which provides banking services to colleges and college students, climbed 18 percent ahead of its IPO price to $14.05, also on the NYSE.
o http://www.reuters.com/article/idUSTRE65G3B920100617?type=innovationNews
PRICINGS
o Initial Offerings
o TSLA Tesla Motors 11.1M share IPO is ecpected 6/28 to price in the range of $14-16 via JPM, GS, MS, DB
o ZOO Zoo Entertainment 2.625M share IPO is expected to price at $8 per share through Roth and ThinkEquity
o CIL China Intelligent prices below range. China lighting 3.35m share IPO priced at $3: Price Talk $4-5
o MOTR Motricity cuts sice, prices below the range. MOTR’s 5m share IPO priced at $10: Price Talk $14-16
o Secondary Offerings
o RBCN Rubicon Technology $49.1M secondary expected priced at $30/share via UBS
o GMR General Maritime 25.5 million shares price at $6.75
NEWS
· C Citigroup Looking Past Volcker May Seek $3 Billion for Funds- BBG
o Citigroup plans to raise more than $3b for its private-equity and hedge funds, even as U.S. lawmakers consider banning banks from owning and investing in so-called alternative funds
· Europe's leveraged firms eye bond lifeline- Reuters
o Debt-ridden companies are wooing bond investors with an appetite for risk in a frantic dash for cash, as the renewal of hundreds of billions of euros of bank borrowing looms in the coming few years
o http://www.reuters.com/article/idUSTRE65G32920100617?type=innovationNews
· Chemtura files for plan of reorganization- Reuters
o The plan, filed late on Thursday, is supported by the company's unsecured creditors and bondholders and requires the bankruptcy court's approval to become effective.
o Chemtura said the plan has the potential to satisfy all creditors' claims in full, as well as offering value to equity holders. It said in a statement that it expects to remain on track to emerge from Chapter 11 protection in the coming months
o http://www.reuters.com/article/idUSTRE65H0UO20100618?type=innovationNews
· Tech: SATC SatCon Technology enters into $12M subordinated debt facility with Horizon Technology Finance
· Real Estate: HCP HCP announces 12.0M share secondary offering through BofA Merrill Lynch
· Energy: EPB El Paso Pipeline Partners announces 10M common unit secondary offering through Barclays, BofA Merrill Lynch, Wells Fargo, JPMorgan, Morgan Stanley
· Healthcare: TSPT Transcept Pharmaceuticals files $75M mixed shelf
· Financials: BANR Banner files S-3MEF; registers additional $22.5M of mixed securities to previously filed $150M mixed shelf
· Tech: GTTI Game Trading Technologies files 4M share secondary offering
***All eco data from Bloomberg and DJ
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