Morning @ Cantor
Morning @ Cantor 8/20
Today’s Stories From Cantor Fitzgerald
Sal Catrini (908) 517-5067
PLEASE NOTE: Sal Catrini is out today.
Any questions or Comments please call Brian Young 212-610-3629
CONTENTS: All Headings Are Functioning Links
Sector News: Energy, Industrials, Transports, TMT, Materials, Autos, Fins, Real Estate, Consumer, Gaming/Lodging, HC, Europe Trading Wrap, Asia Trading Wrap
Investment Banking Wrap: M&A, Money Raising
o US Stock Futures
o S&P Futures down 7 points
o USD up 0.55 points in the session
o The morning began with dealers questioning the direction of the USD given the current environment. Initially the sentiment perhaps the greenback had decoupled from the risk aversion theme and was focusing more on interest rate differentials. However, as the session wore on it began apparent that the risk aversion theme was gaining the upper handle on the debate- TTN
o Treasuries: Bonds Gain Edge Over Equities in Economic Debate- CNBC
o Bond investors are looking more and more on the money than stock investors these days after poor economic data sent the 2-year Treasury yield to a record low and the Dow Jones Industrial Average plunging by as much as 200 points.
o Commodities
o Gold down 3.5 to 1231.9, Crude down 0.61 to 73.82, copper down 1.7%
o
o Oil: IEA warns of Gulf spill effect on new oil supplies- FT
o BP’s oil spill in the Gulf of Mexico has placed the ability of the industry to find important new oil supplies on “a knife-edge,”
o Oil: Debt crisis will cut global oil demand- FT
o “The fiscal vulnerabilities of peripheral Europe have already spread to the banking system and are manifesting themselves into higher borrowing costs for European banks, corporates and consumers,” said Francisco Blanch at BoA commodities research
o Overseas Action
o Europe markets: FTSE 100: (0.36%); DAX: (0.50%); CAC 40: (0.39%)
§ European equities again were unable to maintain its initial gains and risk aversion crept back into sentiment following dovish comments from ECB member Weber- TTN
o Asian Markets: Nikkei (1.96%); Hang Seng (0.43%); Shanghai Composite (1.70%)
§ Negative sentiment plaguing US equities for much of the day in the wake of disappointing Philly Fed and weekly jobless claims has spilled over into Asia, where Nikkei225 and S&P/ASX are also haunted by uncertainty regarding further monetary easing and national elections respectively- TTN
o Japanese Yen: Japan Fin Min Noda: Meeting with PM Kan next week to discuss economy and currency; Has been in close contract with the BoJ; Watching FX market with interest; - Also uncertain BOJ Gov Shirakawa to meet with PM Kan next week- TTN
o EU Commission released its formal report on Greece- BBG
§ stated that the country's fiscal austerity plans appeared sufficient to meet its FY10 target. EU reiterated its positive assessment of Greek deficit plan and expected EU member states to approve the next tranche
§ http://noir.bloomberg.com/apps/news?pid=20601085&sid=aQ1ps6mYBxbg
o Greece: Jobs Crisis Grows as Greece Falters- WSJ
§ Forecasts vary on justhow bad unemployment could get. The International Monetary Fund predicts the jobless rate will reach 14.8% by 2012. But some labor experts fear that before long, one in five Greek workers could be without jobs
o German Recovery May Soften in the Second Half- CNBC
o US Farmers Wary of Gaining From Russia’s Woes- CNBC
§ As planting time approaches next month, they are balancing the possibility of greater income against the failed promises of the past, when bonanzas turned bust
o Australia confronts prospect of minority government- Reuters
§ The vote looks so close, the result may have nothing to do with policy but simply come down to which leader, Prime Minister Julia Gillard or the opposition's Tony Abbott, voters like best
o Uk govt abandon £1.3B tax incentive for patent holders- the times
o Weber Says ECB Should Plot Out Exit in First Quarter- BBG
§ European Central Bank council member Axel Weber said the ECB should help banks through end-of-year liquidity tensions before determining in the first quarter when to withdraw emergency lending measures
o Weber Says Next ECB President Doesn’t Need to Be a ‘Diplomat’- BBG
§ “It’s important to be a diplomat for the diplomatic corps, it’s not so important for a central bank,” Weber said in an interview
o Ireland: Central Bank Gov Honohan commented that the current economic recovery in both US and Europe were slower than hoped for. He added that the sharp decline in Irish economy was at an end and that there were no reason to doubt the planned austerity measures in Ireland
§ He observed that Irish govt debt spreads were "very high". Only two Irish banks are of "major concern" and that bank bailout costs were manageable
o Economics today:
o There are no economic released scheduled today
- Earnings:
o Companies due to report before the bell include: HRL, SJM
o Top M&A
o Deals Stage a Comeback- WSJ
§ Global merger activity is sweeping to its highest levels since late 2009, presenting a glimmer of economic confidence while the bond and stock markets continue to price in a weakening U.S. economy
o Big Bank Deal Signals More to Come- WSJ
§ Thursday's deal between the two healthy financial institutions triggered speculation that a long-awaited wave of consolidation is about to begin among banks still standing after the recession
o KNOC Launches Hostile Bid for Dana Petroleum- WSJ
o Dana Advises Shareholders, Bondholders Not to Act on KNOC Offers- BBG
o POT Potash Begins Hunt For Alternate Offer to Top BHP's- CNBC
§ Potash Corp is soliciting alternative bidders willing to pay more than the $130 a share offered by BHP
o Potash hunt for richer bid may lead to China- Reuters
§ "I assure you there are numerous organizations in China who would chase potash (assets)," said an Asia-based investment banker who has advised Chinese resources companies on overseas deals
o MFE McAfee buy may trigger more tech security M&A- Reuters
§ Intel Corp's surprise $7.7 billion bid for McAfee Inc (MFE.N) may trigger more deals as competitors scramble for a piece of the rapidly growing software security sector.
§ http://www.reuters.com/article/idUSN1926703820100819
o Top $ Raising
o Legacy Healthcare IPO delayed- Reuters
§ Legacy Healthcare Properties Trust Inc , which owns and manages senior housing facilities, delayed its IPO on Thursday due to a "difficult market,"
o HST Host Hotels & Resorts enters into sales agency financing agreement with BNY Capital Markets- SA
o States: California faces issuing IOUs again- FT
o Cali will be forced to issue IOUs to public workers and other creditors in lieu of cash in the next two months if a budget deadlock can’t be broken, the state’s financial controller warned
o Double-Dip talks could continue to dominate- CNBC
o There are no economic reports for markets to obsess over Friday, though the double dip debate will no doubt continue as traders look ahead to next week
o TARP less costly, but not less controversial- reuters
o The $700b bailout of the financial system may still be politically toxic, but for those who voted for the program, there is some good news: the taxpayer bill continues to drop
o Finra Broker Reporting Plan Pummeled- American Banker
o Tech: DELL slightly better Q, but margins disappoint. Revenue was better on strong commercial business. The consumer segment underperformed in the sector, and could be an area of concern. It appears that DELL is capitalizing on the current corporate Pc refresh. Guidance was maintained. In consumer; Desktop performed well, but notebooks disappointed in the Q.
o Tech: HPQ reports solid Q results were a beat in line with Preannouncement. Top line strength was a major positive in the Q, and the ompany guided higher. Strong PC demand helped to drive the top line growth. PC demand in the corporate sector was very strong, but was weaker in the consumer segment. There may be some questions about the guidance due to a potential policy shift from the coming CEO succession.
o Consumer: GPS mixed Q2 with cost controls helping to drive towards the positive. Traffic trends in the Q were weak and could weigh on near term earnings. Mgmt announced a $750m buyback program. Inventories in the Q were high which raised some red flags.
o Tech: Google vs. Facebook on Places- WSJ
o Now they are both after local-ad dollars. So far, only a fraction of local businesses advertise online. But in an interview Wednesday, Facebook Chief Executive Mark Zuckerberg called the local market a "big space."
o Vendor Ward: New Front Opens in NY Vendor Wars- WSJ
o JOBS: New York City Sees Job Growth in July- WSJ
o Gulf Spill: Oil Plume From Spill Persists, Data Show- WSJ
o Oil from the Deepwater Horizon spill formed an underwater plume of hydrocarbons the size of Manhattan, scientists said Thursday, raising fears of a lingering cloud of trace chemicals in the Gulf with an unknown long-term impact
o Gulf Spill: RIG Transocean at loggerheads with BP over rig documents- FT
o The increasingly bitter dispute over responsibility for the Gulf of Mexico disaster intensified on Thursday after Transocean, the owner of the drilling rig leased by BP, accused the UK energy company of withholding vital information
o Social Security Cuts Weighed by Panel- WSJ
o A White House-created commission is considering proposals to raise the retirement age and take other steps to shore up the finances of Social Security, prompting key players to prepare for a major battle over the program's future
o Bank Dividend Increases Near 30% Coming: Analyst- CNBC
o The banks names by Gerard Cassidy of RBC in his CNBC interview are KEY, STI, WBS, JPM, BAC, WFC, USB, and PNC
o Macro negative:
o More US Workers Tapping Pensions Early: Fidelity- CNBC
§ A record number of workers are tapping into their retirement accounts to make it through the economic downturn, Fidelity found in a survey released Friday
o More tough economic times forecast by CBO- Reuters
§ The U.S. economy faces difficult times ahead with chronic unemployment and slow manufacturing hurting the pace of recovery, Congress' budget agency said
o Pension Cuts Won’t Cover a $3 Trillion Bill in U.S., Study Says- BBG
§ Taxpayers must cover at least a third of a $3 trillion bill for public employee pensions even if lawmakers eliminate cost-of-living increases and raise the retirement age
o Macro Positive:
o Signs the Global Recovery is Happening- CNBC
o HSBC Sees ‘Decent’ Chance for Global Stock Rally in 4th Quarter- BBG
§ Global stocks stand a “decent chance” of a rally in the fourth quarter as investors are overly pessimistic about the outlook for economic growth
§ While growth may be “sub-trend,” the investment company doesn’t foresee a so-called double dip, said Philip Poole, the global head of macro and investment strategy at HSBC Global Asset
o Fed Watch
o New Oversight Role Tests FDIC Relationship with Fed- American Banker
§ The Federal Reserve Board, the sole bank holding company regulator for decades, is about to experience a pretty new concept: a teammate
o Political Stories:
o Obama says: We need to help small businesses- USA Today
§ Obama today made another plea to the Senate to pass a bill making it easier for small business owners to get loans -- although the Senate is also on vacation.
o Leader on Bush Tax Cuts Wins Allies to Keep Provisions in Place- BBG
§ The fight, coming at the height of the election campaign, is forcing lawmakers to weigh public anxiety over the budget deficit against concern that the recovery may be weakening
o Democrats reject gloomy election forecast- Reuters
§ Democratic Party leaders on Thursday rejected predictions of doom in November's elections and said a strong voter turnout operation and weak Republican candidates would propel them to a better-than-expected result
o Obama makes four appointments, bypassing Senate- reuters
§ President Barack Obama on Thursday made four recess job appointments to his administration, including a new U.S. ambassador to El Salvador
o Giuliani Says Mosque 'Divisive'- WSJ
§ Former Mayor Rudy Giuliani is characterizing the proposed mosque and Islamic cultural center near Ground Zero as "divisive," saying Thursday that the organizers' plans are breeding hate rather than healing wounds.
o Worried Democrats courting elderly voters as midterm elections near- WPO
o Crisis Watch
o U.S. assures Israel nuclear Iran not imminent- Reuters
§ The Obama administration has assured Israel that Iran's process of converting nuclear material into a working weapon would take at least a year
o Israelis, Palestinians Near Peace Talks- WSJ
§ Israeli and Palestinian leaders are close to an agreement to resume peace talks after nearly two years, with an official announcement expected as early as Friday
o Iran’s Goal Is to Use Own Uranium for Power Plant, Salehi Says- BBG
§ Iranian Vice President Ali Akbar Salehi today rejected the latest U.S. call to suspend uranium enrichment, saying Iran’s long-term goal is take over from Russia in providing fuel for the Russian-built nuclear power station at Bushehr
o U.S.-South Korea Exercises Rile China- WSJ
§ "There's a real danger things could get out of control—and that would be a real threat for China's national security," a senior official said.
o Pakistan seeks $10bn loan restructure- FT
§ Pakistan is to ask the International Monetary Fund to ease restrictions on a $10bn loan it received in 2008 after concluding that the recent devastating floods had made the conditions attached to the lending programme impossible to meet
o North Korea says consensus with China on nuclear talks- Reuters
§ China, which had been the host of the six-way talks that began in 2003, has urged regional powers to "flip the page of the Cheonan incident" and resume negotiations
o Al Qaeda claims responsibility for attack in Iraq- Reuters
§ Al Qaeda's Iraqi affiliate claimed responsibility for a suicide attack on an army recruitment center in Baghdad in which at least 57 recruits and soldiers were killed
o Fund Stories
o Shrinking ‘Quant’ Funds Struggle to Revive Boom- NYT
§ after blundering through the financial panic, losing big in 2008 and lagging badly in 2009, these so-called quantitative investment managers no longer look like geniuses, and some investors have fallen out of love with them.
§ http://www.nytimes.com/2010/08/20/business/20quant.html?_r=2&ref=business
o Wild Trading in Metals Puts Fund Manager in Cross Hairs- WSJ
§ The hedge-fund industry has been rocked over the past year by allegations that fund managers reaped illegal profits by trading stocks based on inside information
§ The investigation of Mr. Pia and the case against Moore suggest that commodities trading also can be an insider’s game as well
o Real Estate Stories
o Could 4.5% Refis Be a Balm for Mortgage Crisis?- American Banker
§ “All homeowners current on their mortgages need to be refinanced into a loan with a 4.5% interest rate to help the economy”
o Wall Street Makes Hay With Defaulted Mortgages- CNBC
§ So-called "vulture" firms have been snapping up troubled home loans at a faster pace, and are expected to ramp up securitizations of the assets in coming months
o Housing Double Dip Is Not Just Tax Credit Hangover- CNBC
o Death of the 'McMansion': Era of Huge Homes Is Over- CNBC
o Equity Recap
o S&P’s fought through the early morning to recoup the last minute 5 point fade of yesterday (on heavy S&P call option selling). Coming into the 8:30 release of the Claims data, futures were up almost 8 at 1094.50. With the print of 500k in New Claims, though, S&P’s immediately retreated 10 points. They fought back a little until we got the Philadelphia Fed report at 9:45, which came in at minus 7.7 as opposed to the expected 7 point gain. The next fade was deeper and steeper: almost 20 points to 1069. At lunchtime, they turned up from this level in a feeble attempt to rally. The most they recouped was 8 points before falling all the way back to close near the lows at 1071.20.
o We came in to an overseas market that was mixed to lower, and had us down early, then came the Jobs Claims - and they weren’t pretty, 500k was not a number that people took to well and the Philly Fed number just compounded the issue. Despite earnings coming out better, we’re still seeing a lot of cost cutting in order to make the grade which is not the type of feedback showing we’re truly doing better – the earnings were enough to keep us propped up for a while but once the polish wears off the support is gone, and hence the lack of confidence out there and most looking to keep their wallets shut. For us to get up through the 1100 mark on the S&P it’s going to take some real positive news – and we just aren’t seeing it. Internally we had a lot of guys paring on positions and taking some of the risk off the table, shorts were heavier and there was an overall strike on the buyers side of the net – all picking spots lightly and taking a step back to watch, volume remained very light throughout – though the M&A action we’re seeing provides some opportunities. Buy and sell names were pretty even, the breadth of the market had about 4 ½ declining issues for every 1 advancing, most of the activity here was in the tech / telecom space 34% followed by healthcare 12%, financials 11% and consumers 10%. Technically we fell through 1088 and 1080 and bounced off major support that held @ 1070 which was 50% the retracement between 1010 low and 1130 high
o Billy Clark and Team
o Convertible Wrap
o Trading remains light. The focus was back to event/news related names like INTC, SNDK, SYMC. Most of the short dated YTP and YTM names still well bid. Carrizo (CRZO) which announced an asset sale a couple of weeks ago is up almost 10 points since then and about 3 points over the past 2 days. Customer sells slightly outnumbered customer buys today. Sandisk old converts up about 1 point on the financing news. We are expecting Sandisk to price their $1.0 billion deal tonight for tomorrow. Price talk is 1.5% coupon with a 25% premium in the middle of the range.
o Thomas Fazio
o Rates Commentary
o Treasuries opened the day weaker but quickly caught a bid on much weaker than expected economic data, with the long end leading the way once again. There was buzz of a 9,000 Dec. Ultra Bond Contract trade done early in the session and that contract is trading nearly 2 points above that level now. Also, the Fed bought USTs today in their 2nd round of QE2.0 targeting 8/16 – 8/20 UST coupons. Primary Dealers offered in nearly $22BB and $3.6BB in bonds were purchased, all of which were originally issued as 7-year Treasury notes. Next Tuesday we will see the Fed purchase bonds of 2/13 – 7/15 maturity and next Thursday the Fed will make their 4th round of purchases in the 2/21 – 5/40 sector.
o Economic data: Haunting. Jobless claims rose almost 5%. Last week’s numbers revised higher. One might attribute the dismal data to the DJIA color your screen was flashing today (DJ futures +40 pre-open and now currently -160ish on the day, where they have been most of the day). Although a bid certainly emerged after jobless double dippish data, it did not show teeth until an incredibly weak Philadelphia Fed Index reading showed -7.7 vs. +7.0 exp. Recent new highs across the curve: 2s (0.476%), 10s (2.557%) and 30s (3.622%). The 2yr/10yr and 10/30yr curves quickly flattened by as much as 4 and 5bp respectively.
o The Treasury announced the coupon and Tips supply for next - $37bb in 2year notes ($1bb less than last month), $36bb 5year notes ($1bb less), $29bb 7year notes (unch.) and reopening 29 ½ year TIPS for $7bb.
o Primary Dealer
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o CQP Cheniere Energy Partners files $300M mixed shelf; also registers 10.89M common units for holder
o GOK Geokinetics appoints interim CFO
o FTI FMC Technologies receives $36M call-off from Total
INDUSTRIALS
o NDSN Nordson reports Q3 EPS
o VSEC VSE Corporation acquires Akimeka llc
o SSW Seaspan files $1B mixed shelf
o CSIQ Canadian Solar reports Q1 EPS
o ZIGO Zygo Corp reports Q4 EPS
TRANSPORTS TECH/MEDIA/TELECOM
o SSW Seaspan files $1B mixed shelf
o North American semiconductor equipment industry posts July book-to-bill ratio of 1.23 vs. 1.18 in June
o MFE McAfee downgraded to neutral from outperform at Macquarie Research
o MFE McAfee downgraded to hold from buy at Stifel Nicolaus
o MRVL Marvell guides Q3 revenue $930-970M vs Reuters $944.2M - conf. call
o RMBS Rambus announces a ~$90M accelerated share repurchase program
o CRM: Salesforce.com reports Q2 bookings $412.9M vs StreetAccount $385.1M
o CIS Camelot Information Systems reports Q2 EPADS
o HPQ Hewlett-Packard reports Q3 EPS
o WWON Westwood One reports Q2 EPS
o CRM Salesforce.com reports Q2 EPS
o MENT Mentor Graphics reports Q2 EPS
o SCSC ScanSource reports Q4 EPS
o JRJC China Finance Online reports Q2 EPS
o ZOOM ZOOM Technologies reports Q2 EPS
o MRVL Marvell reports Q2 EPS
o VRGY Verigy reports Q3 EPS
o BCSI Blue Coat reports Q1 EPS
o DELL Dell reports Q2 EPS
o HPOL Harris Interactive reports Q4 EPS
o INTU Intuit reports Q4 EPS
MATERIALS
o GSM Globe Specialty Metals CEO Jeff Bradley assumes COO role
o ALB Albemarle to increase prices of MARTINAL mineral flame retardants
AUTOS
o TSLA Tesla Motors acquires assets from New United Motor Manufacturing
FINANCIALS
o NARA Nara Bancorp announces closing of bulk loan sale
o AMG data reports equity fund outflows of ($9.1B) in w/e 18-Aug vs outflows of ($503M) in w/e 11-Aug
o BAC Bank of America plans to test retail payments with cell phones; Visa (V) confirms it is working with BofA on tests-- Reuters
o TYC, SLB, MDRX, AFFX, ECLP S&P’s announces changes to U.S. Index; Tyco International will replace Smith Intl. Inc. in the S&P 500 after the close of trading on August 26, 2010. Schlumberger Ltd. (SLB) is acquiring Smith Intl. in a deal expected to be completed on or about that date, pending final approvals. Allscripts-Misys Healthcare Solutions will replace Affymetrix, Inc.in the S&P MidCap 400, and Affymetrix will replace Eclipsys Corp. in the S&P SmallCap 600 on a date to be announced. Eclipsys is being acquired by Allscripts-Misys Healthcare Solutions in a deal expected to be completed soon pending final approvals.
o Fed reports balance sheet assets of $2.32T on Wednesday, ($13.9B) w/w and +$253.3B y/y
o KKR Kohlberg Kravis Roberts initiated outperform at Oppenheimer; target is $14.
o TCAP Triangle Capital makes $14M investment in Carolina Beer & Beverage
REAL ESTATE
CONSUMER
o PEP Barron's Weekday Trader is positive on PepsiCo
o ZUMZ Zumiez guides Q3 revenues $124-127M vs. Reuters $124.6M -- conf. call
o WNC Wabash National files $73.6M mixed shelf; registers 9.4M shares for holders
o FRPT Force Protection awarded $64.1M modification to USMC contract
o CRMT America's Car-Mart reports Q1 EPS
o FL Foot Locker reports Q2 EPS
o TBV Tiens Biotech Group reports Q2 EPS
o JWN Nordstrom authorizes $500M share repurchase program
o CPWM Cost Plus reports Q2 EPS
o ARO Aeropostale reports Q2 EPS
o BAMM Books-A-Million reports Q2 EPS
o GPS Gap reports Q2 EPS
o ZUMZ Zumiez reports Q2 EPS
o WTSLA Wet Seal reports Q2 EPS
GAMING, LODGING, & LEISURE
o SWHC Smith & Wesson amends merger agreement with Universal Safety Response
UTILITIES HEALTHCARE
o
o GILD Gilead Sciences says that Sigmapharm Laboratories, LLC has submitted an ANDA to the FDA for a generic version of Hepsera
o LLY Eli Lilly comments on FDA panel vote regarding Cymbalta
o AIZ Assurant Health announces reductions in workforce at various locations; sees after tax charges of $5.5M in Q3
o TSRX Trius Therapeutics reports Q2 EPS
OTHER
o Stocks mentioned on CNBC's Mad Money with Jim Cramer - TheStreet.com
o + FOSL, CREE, RBCN MRX, CVX, TRV, PRU, WTW, HOT, YHOO, HD and PEP
- BEXP, HIG, SD, MED, JCP, TGT and STRA
o ***************************
o Evening summary; S&P Futures (1.0) vs fair value
o Trading higher:
o MRVL +9.9% (earnings)
o CRM +7.8% (earnings)
o INTU +5.7% (earnings)
o TYC +4.6% (to be added to the S&P 500)
o NDSN +3.9% (earnings)
o GPS +3% (earnings)
o VRGY +2.5% (earnings)
o Trading lower:
o BCSI -5.8% (earnings)
o CSIQ -4.1% (earnings)
o DELL -2% (earnings)
EUROPE TRADING WRAP
o Energy
§ Dana Pete + 5.6%. KNOC bid 1800P a share cash…says has 48% support of shareholders.
§ British Gas +6.5% Press speculation target for Royal Dutch (Daily Mail)
o Mining
§ ENRC -3.3%. Citi cut to hold v buy.
ASIA TRADING WRAP
o Japan
§ NKY-1.96%, TPX -1.71%
§ NKY fell extending losses set off by weak US economic data that sent the dollar slipping back to a 15-year low, as worries deepened about what steps the Japanese government might take to stem the recent yen rise. Turnover on the TPX rose to 1.12 trillion yen from 1.09 trillion yen yesterday
§ Stocks fell across most sectors led by oil & gas, materials, financials, industrials and consumer
§ Exporters fell as the yen advanced against the dollar: autos -1.79%, CE -2.16%, precision -1.70%, tech -1.68
§ Real estate -2.01% after recent gains
§ Traders -1.68% after metal prices fell
§ Best performing sectors on the TPX: electric power & gas -0.49%, info & comm. -0.99%, fishery, agriculture & forestry -1.00%; worst performing sectors: oil & gas -2.96%, nonferrous metals -2.68%, securities -2.52%
INVESTMENT BANKING
INVESTMENT BANKING WRAP
o POT Potash hunt for richer bid may lead to China- reuters
o Potash Corp's search for buyers willing to top BHP Billiton's (BHP.AX) $39 billion hostile offer for the world's largest fertilizer firm could encourage Chinese firms to join the fray.
o Potash is soliciting alternative bidders willing to pay more than the $130 a share offered by BHP, the world's largest mining company
o http://www.reuters.com/article/idUSSGE67J03V20100820
o KNOC launches $2.9 billion hostile bid for Dana- Reuters
o Seoul gave KNOC a $6.5 billion warchest this year to compete with energy-hungry Asian state firms aiming to secure future supplies for their growing economies. Chinese and other firms have so far outgunned KNOC in bigger M&A battles.
o http://www.reuters.com/article/idUSTRE67J04P20100820
o http://www.ft.com/cms/s/0/73f637ba-abd5-11df-bfa7-00144feabdc0.html?ftcamp=rss
o Russia's Kerimov creates national potash giant- Reuters
o Russian billionaire Suleiman Kerimov is close to creating a national potash mining champion via the merger of his stakes in domestic rivals Uralkali and Silvinit
o http://www.reuters.com/article/idUSLDE66I07120100820
o Maersk Oil CEO says eyeing BP assets- Reuters
o Maersk Oil CEO Jakob Thomasen said in a briefing for journalists at Maersk headquarters in Copenhagen that it was well known that BP is looking to spin off some assets.
o Thomasen said, however, that Maersk was "picky" and would only buy assets that would be profitable
o http://www.reuters.com/article/idUSLDE67J0JB20100820
o Rio CEO says still seeking BHP iron ore JV approval- Reuters
o Global miners BHP and Rio expect the iron ore joint venture in Western Australia will fail to get regulatory approval
o Rio and BHP officials in Australia declined to comment on the report, which quoted mining executives saying competition regulators in various jurisdictions had rejected the two miners' arguments that the venture would not have price-setting power.
o http://www.reuters.com/article/idUSTRE67I62Y20100820
o MFE McAfee buy may trigger more tech security M&A- Reuters
o Intel Corp's (INTC.O) surprise $7.7 billion bid for McAfee Inc (MFE.N) may trigger more deals as competitors scramble for a piece of the rapidly growing software security sector.
o http://www.reuters.com/article/idUSN1926703820100819
o Canada's Agrium completes due diligence on AWB- Reuters
o Canada's Agrium Inc (AGU.TO) has completed due diligence on Australia's AWB Ltd (AWB.AX) after putting in a bid to buy the wheat exporter for A$1.2 billion ($1.07 billion), AWB said, an offer which trumps a lower all-scrip bid by local rival GrainCorp
o http://www.reuters.com/article/idUSTRE67J0PT20100820
o Alliance Medical could be up for sale- Reuters
o Alliance Medical DUBAHD.UL, a unit of Dubai International Capital (DIC), could be put up for sale within weeks if talks over an urgent cash injection into the UK-based company fail
o The Gulf sovereign wealth fund has informally sounded out potential buyers in case the debt restructuring talks fail
o http://www.reuters.com/article/idUSTRE67J0EF20100820
o CAT Caterpillar CEO sees more M&A- Reuters
o Caterpillar’s new chief executive, Doug Oberhelman, confirmed the company's goal of more than doubling profit by 2012 and said he sees opportunities for more takeovers.
o http://www.reuters.com/article/idUSN1927254520100819
o China Everbright to sell stake in Pramerica fund JV- Reuters
o Everbright Securities wants to sell the stake in Shanghai-based Everbright Pramerica Fund Management Co for 330 million yuan ($48.6 million), it said in an offer document posted on the website of Shanghai United Assets and Equity Exchange.
o http://www.reuters.com/article/idUSTOE67J00G20100820\
o NOK Nokia buys U.S. mobile analytics firm Motally- Reuters
o Nokia did not disclose the value of the acquisition, but said the U.S. firm -- whose service gives developers and publishers better information on the usage of their software -- employs eight people
o http://www.reuters.com/article/idUSLDE67J0K620100820
o Soros buys 4 pct in India's BSE for $35 mln- Reuters
o Billionaire financier George Soros has picked up a 4 percent holding in India's Bombay Stock Exchange for about $35 million
o http://www.reuters.com/article/idUSBMA00828120100820
o Three U.S. shale gas firms up for sale – WSJ
o Three privately owned U.S. natural gas operators, potentially worth a combined $5.5 billion, are up for sale and looking to tap into major energy companies' demand for shale gas
o Chief Oil could be snapped up for up to $3 billion, Talon Oil & Gas could go for between $1 billion and $1.5 billion, and Anschutz Exploration Corp could fetch about $1 billion
o http://www.reuters.com/article/idUSSGE67J08X20100820
o Wise Partners agrees to buy GS Goldman's Teibow- Reuters
o Wise Partners, a Japanese private equity firm, will buy Teibow Co., a local maker of felt tips, from Goldman Sachs (GS.N) for as much as 15 billion yen ($176 million),
o Wise outbid Advantage Partners and other potential buyers looking to take control of the company
o http://www.reuters.com/article/idUSTKF10698320100820
o China Anshan says still committed to US investment- Reuters
o China's Anshan Iron & Steel Group Corp said it was committed to pushing forward with a U.S. steel project, a day after an executive of its listed unit said the deal was on hold due to opposition from U.S. lawmakers
o http://www.reuters.com/article/idUSTOE67J04L20100820
o RSA deal with Aviva remains possible- Reuters
o Ignis Asset Management, an institutional shareholder in both Aviva (AV.L) and RSA (RSA.L), said a deal between the two insurers remained possible although RSA would have to raise its bid proposal for some Aviva units
o http://www.reuters.com/article/idUSTRE67J11T20100820
o Essar Energy eyes overseas acquisitions- FT
o Essar Energy it would explore acquisitions in developed countries to help find a market for its growing petrol and diesel output
o http://www.ft.com/cms/s/0/868df6ec-ab5d-11df-abee-00144feabdc0.html
IPOs
o Legacy Healthcare IPO delayed- Reuters
o Legacy Healthcare Properties Trust Inc , which owns and manages senior housing facilities, delayed its IPO on Thursday due to a "difficult market,"
PRICINGS
o Initial Offerings
o LRP Legacy Healthcare Properties Trust Inc 8.75m share IPO expected to price 8/19 via Jefferies and Stifel: Price Talk $20
§ DELAYED
o Secondary Offerings
o SNDK SanDisk $1B convertible senior note offering priced through Morgan Stanley and Goldman Sachs
NEWS
o
o Financials: WNC Wabash National files $73.6M mixed shelf
o Energy: CQP Cheniere Energy Partners files $300M mixed shelf
o Transports: SSW Seaspan files $1B mixed shelf
o CONFERENCES
o Santander Brazil Conference
§ NTS: VALE
o TDWI World Conference - Aug 15, 2010 - Aug 20, 2010
o The MoneyShow San Francisco - Aug 19, 2010 - Aug 21, 2010
o TODAY’S EVENTS
o Shareholder Meetings
§ SUPX, AFOP, MCHP, API
o ECONOMICS
o No major economic data today
o EARNINGS
o Materials
· MGN, SRCN, TRA
o Consumer/Retail/Education
· ANN, KIRK, BAMM, HIBB, HRL, SJM, YYIN
o Energy
· DPDW, SNEN, AEZ, GGR, TMR
o Financials
· CBC, CTBK, XBKS, LSBI, TBNK, JAXB
o Healthcare
· BPAX, ENMD, NVLT, PYMX, TRBN, SFES, MBRK, PVCT
o Industrials/Homebuilders
· BNSSA, TOD, LYTS, VUOC, OICO
o Media
· ROIAK
o Real Estate
· NEN, SPPR
o Tech/Telecom
· BLGW, DITC
o Transportation
· NM, SFL
***All eco data from Bloomberg and DJ
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