Today - Wednesday, October 7, 2015
- Micro cap Lion Biotechnologies (NASDAQ:LBIO) is up 12% premarket on light volume in response to its announcement that it has obtained an exclusive worldwide license from the National Institutes of Health (NIH) to develop and commercialize tumor-infiltrating lymphocyte (TIL) therapy in four additional cancers: bladder, lung, breast and HPV-associated, including head and neck.
- The license was granted as an amendment to the company's existing exclusive TIL license agreement with NIH for metastatic melanoma. Under the terms of the agreement, NIH will receive an upfront fee, milestone payments and royalties on commercial sales.
- TILs are an adoptive cell transfer therapy to treat cancer. Autologous lymphocytes are isolated from the patient's tumors and grown in large numbers in the laboratory. After chemotherapy to deplete native lymphocytes, the TILs are infused into the patient where they attack the cancer cells.
- Monsanto (NYSE:MON) -4.6% premarket after reporting FQ4 earnings and revenues that missed expectations, as corn seed sales continue to weaken.
- MON says it plans to cut 2,600 employees over the next two years, ~12% of its global workforce, with the aim of generating $275M-$300M in annual savings.
- MON also plans some restructuring actions costing an estimated $850M-$900M, and announces a new $3B stock buyback program.
- MON forecasts FY 2016 EPS of $5.10-$5.60 vs. $6.24 analyst consensus estimate; "it’s hard to see where growth will come from next year. The seed environment doesn’t seem entirely robust here or in South America,” says Monness Crespi analyst Chris Shaw.
- Says FY 2015 results reflected Y/Y ongoing EPS growth of 10%, or ~17% on an ongoing currency neutral basis, despite the downturn in the agriculture cycle.
- For FQ4, MON says corn sales, its biggest source of profit, fell 5.1% Y/Y to $598M, and soybean sales dropped 19% to $162M; sales in the agricultural productivity segment, which includes the Roundup brand weed killer, fell to $1.1B from $1.25B.
- FQ4 gross margin fell to 42% from 47%.
- Shortly following a Re/code report stating a deal is close, Pandora (NYSE:P) has officially announced it's buying small venue-focused online ticket agency Ticketfly for $450M. The deal will have "a nearly equal balance of cash and stock."
- Pandora: "The combination of Pandora and Ticketfly will solve the longstanding problem of event discovery by seamlessly connecting Pandora's nearly 80 million monthly active music fans to events they'll love. This will enable artists and promoters to sell out more shows and will strengthen the bond between artists and their fans. The companies will also harness the power of their combined data to create new tools for music makers to increase their revenue and improve recommendations for fans to enhance their overall music experience."
- Ticketfly sold 16M tickets last year for 90K+ live events, powers 600+ sites on behalf of clients, and sees an average of 14M monthly unique visitors to its main site and client sites. It provides ticket sales and marketing software for ~1,200 venues.
- Pandora has fallen to $21.45 premarket.
- Carmike Cinemas (NASDAQ:CKEC) acquires Sundance Cinemas for $36M.
- The transaction will add Sundance's 37 regular screens and 7 3D screens to the company's holdings.
- Carmike estimates the deal will add $24M in incremental revenue and pro forma EBITDA of $5.6M for a trailing 12-month period.
- Sundance Cinemas was part of Robert Redford's Sundance Group.
- S&P +0.64%.
- 10-yr -0.21%.
- Euro -0.15% vs. dollar.
- Crude +1.38% to $49.20.
- Gold +0.43% to $1,151.30.
- RSP Permian (NYSE:RSPP) -2.9% premarket after agreeing to acquire acreage and oil and natural gas producing properties in Texas' Midland Basin for ~$137M.
- The properties include 86 net horizontal drilling locations and 25 producing wells with average net production of ~1,900 boe/day in August.
- To help fund the deal, RSPP launches a public offering of 6M common shares, with an underwriters option to purchase up to an additional 900K shares.
- Also, RSPP expects Q3 production to average 23.5K-24K boe/day (~75% oil), a 110%-114% Y/Y increase and an 18%-21% Q/Q growth rate.
- Immune Pharmaceuticals (NASDAQ:IMNP) files an Investigational New Drug (IND) application with the FDA to expand recruiting for a mid-stage study assessing lead product candidate bertilimumab for the treatment of bullous pemphigoid (BP), a rare, chronic autoimmune skin disorder characterized by the formation of blisters between the epidermis and dermis. It affects ~60K Americans.
- The company recently initiated a Phase 2a trial in BP in Israel, where 10 - 15 patients will be recruited to assess symptomatic improvement and reduction in steroid use.
- Bertilimumab is a fully human IgG4-type monoclonal antibody that blocks the activity of a protein called eotaxin-1 that plays a key role in inflammation.
- SABMiller (OTCPK:SBMRY) formally rejects the $104B takeover offer from Anheuser-Busch InBev (NYSE:BUD).
- The U.K. beer giant says the AB InBev offer "substantially undervalues" the company and has been timed to opportunistically take advantage of its its depressed share price. Significant regulatory hurdles in the U.S. and China are also seen as major hurdles.
- Shares of SABMiller are up 2.4% in London trading, while Anheuser-Busch InBev is 2.7% higher in New York premarket action. Molson Coors (NYSE:TAP) is also on the move, up 1.37% to $82.10.
- SABMiller announcement
- Previously: SABMiller talks down AB InBev's new offer (Oct. 07 2015)
- Airbus (OTCPK:EADSY) has filed more patents to increase seating on the A380, creating the potential to cram even more people into planes, Business Insider reports.
- "In modern means of transport...it is very important from an economic point of view to make optimum use of the available space. Passenger cabins are therefore fitted with as many rows of passenger seats as possible, which are positioned with as little space between them as possible," the planemaker said in a filing.
- Check out the designs here
- Axion Power (NASDAQ:AXPW) -43.2% premarket after announcing that the exclusivity period under its binding letter of intent with LCB International had expired.
- AXPW had sought a comprehensive agreement for funding and technology licensing, but says LCB was not willing to move forward with any deal structure that contemplated anything further than a technology license.
- A badly-burned Bank of America (NYSE:BAC) won't do it anymore, but JPMorgan (NYSE:JPM) - aiming to make up for slowing business in its mortgage operation - is increasingly buying loans from smaller lenders, writes Dan Freed for Reuters.
- In H1, the Bank of Dimon bought 62% of the $58B in residential mortgages added to its books, up from 56% in 2014 and 37% in 2011. According to Inside Mortgage Finance, JPMorgan has shown the biggest increase among peers in so-called correspondent lending.
- "As they gain more confidence about the environment, they go right back to the correspondent channel for more volume," says analyst Charles Peabody. "There's more risk in being that far away from the customer," says BofA's Steve Boland, who leads mortgage and auto lending. For its part, JPMorgan says it only works with "experienced, well-managed, and high quality lenders," and reviews every loan in detail.
- Wells Fargo's (NYSE:WFC) Eric Stoddard - who runs the bank's correspondent business - says it's cheaper to buy mortgages from other lenders than to make the loans itself.
- "I think Bank of America's (policy) is a little foolish," says lender Ken Perimutter, whose PERL expects to make about $1.6B in home loans this year, and sell about 60% of those to JPMorgan.
- Seattle Genetics (NASDAQ:SGEN) commences a Phase 1/2 clinical trial evaluating the combination of ADCETRIS (brentuximab vedotin) and Bristol-Myers Squibb's (NYSE:BMY) Opdivo (nivolumab) in patients with relapsed/refractory Hodgkin lymphoma (HL) who have failed first-line treatment. The trial, which will enroll ~60 subjects, is being conducted to see if patient outcomes can be improved by combining ADCETRIS with a checkpoint inhibitor.
- The study is being under the companies' clinical trial collaboration announced in January 2015.
- ADCETRIS is an antibody-drug conjugate consisting of an anti-CD30 monoclonal antibody attached to microtubule disrupting agent, monomethyl auristatin E. It is currently cleared for the treatment of HL patients after failure of ASCT or after failure of at least two prior multi-agent chemo regimens and for the treatment of patients with systemic anaplastic large cell lymphoma after failure of at least one prior multi-agent chemo regimen.
- Opdivo is a programmed death-1 (PD-1) immune checkpoint inhibitor that is approved in the U.S. for the treatment of metastatic squamous non-small cell lung cancer and metastatic melanoma.
- Previously: Seattle Genetics and Bristol-Myers team up in blood cancer trials (Jan. 12)
8:28 AM| 8:28 AM | Comment!
- Constellation Brands (NYSE:STZ) reports beer sales rose 14% in FQ2 on strong volume growth. Beer depletions were up 10% during the period.
- Organic wine and spirit sales rose 3% for Constellation during the quarter on a constant currency basis.
- Operating margin was up 320 bps to 28.9% on a comparable basis and rose 410 bps to 27.7% on a reported basis. Favorable beer pricing and lower costs contributed to the margin gains.
- STZ +3.49% premarket to $135.90.
- Platform Specialty Products (NYSE:PAH) -2.9% premarket after cutting its 2015 earnings guidance because of currency headwinds and weakness in the agricultural segment.
- PAH now sees FY 2015 adjusted EBITDA of $550M-$570M vs. its earlier outlook for $620M-$650M.
- PAH attributes the change to a $25M impact linked to foreign exchange volatility, a $10M hit from a weaker agricultural specialty chemical market, and a $40M loss from a shift in its distribution strategy in its ag business.
- Also, PAH names Benjamin Gliklich as its new COO after serving as VP of corporate development, finance and investor relations.
- At issue were about 1.4K mortgages - originated from 2003 to 2013 - the bank failed to report were defective, says the DOJ. The matter arose in part from a whistleblower suit filed by the bank's chief appraiser who alleged a number of commercial and residential mortgage violations, including fraudulent appraisal practices.
- Fifth Third (NASDAQ:FITB) will pay $85M to make the government go away.
- Media General has dropped its $3.1B bid to buy Meredith, according to the NY Post, because Media General shareholders are unlikely to approve the deal.
- Yesterday, major shareholder Oppenheimer (7% stake) joined Starboard Value (4.5% stake) stating it was against the acquisition.
- MEG +0.7% premarket
- Previously: Oppenheimer joins opponents of Media General/Meredith deal (Oct. 06 2015)
- In a regulatory filing, Medivation (NASDAQ:MDVN) reports that it completed its acquisition of talazoparib, a PARP inhibitor, from BioMarin Pharmaceutical (NASDAQ:BMRN). Under the terms of the deal, Medivation paid BioMarin an upfront fee of $410M and will pay up to $160M in various milestones and mid-single-digit royalties on net sales.
- PARP inhibitors fight cancer cells by inhibiting DNA repair. Certain cancer cells, such as those with BRCA mutations, are deficient in DNA repair pathways so they are more sensitive to PARP inhibition.
- Previously: Medivation to acquire all worldwide rights to talazoparib from BioMarin (Aug. 24)
- S&P +0.6%.
- 10-yr -0.16%.
- Euro -0.03% vs. dollar.
- Crude +1.71% to $49.36.
- Gold +0.31% to $1,150.00.
7:59 AM| 7:59 AM | 1 Comment
- Rio Tinto (NYSE:RIO), BHP Billiton (NYSE:BHP) and Anglo American (OTCPK:AAUKF, OTCPK:AAUKY) soar near the top of U.K.'s FTSE 100 after Morgan Stanley upgraded the metal and mining sector to Attractive, saying valuations are at historically attractive levels.
- Glencore (OTCPK:GLCNF, OTCPK:GLNCY) also is higher after saying it closed its Eland platinum mine in South Africa, resulting in 970 job losses.
- Stanley sees commodity prices rising 19% by 2017, which would be "a sharp reversal from the experience in the last 18 months," and believes the recent acceleration of financial and administrative stimulus policies in China "will start to feed through in both actual activity levels and equity market expectations."
- The firm raises its recommendation for Rio and to Overweight from Equal Weight and for Anglo to Equal Weight from Underweight.
- In the U.S. premarket, RIO +8.7%, BHP +4.1%.
- FTI Consulting forecasts holiday sales will increase 3.9% this season. The sales growth mark is a deceleration from the 5.2% gain from the 2014 holiday season.
- The research firm notes consumer confidence is fairly high, but has retreated from the post-recession peaks seen earlier this year.
- The level of recent wage gains haven't been large enough to move consumer spending off its weak trend, according to FTI.
- Related ETFs: XLY, XRT, VCR, RTH, RETL, FXD, FDIS, RCD, PMR.
- The FDA designates Orphan Drug-tagged avelumab for Fast Track review for the treatment of Merkel cell carcinoma (MCC), a rare and aggressive type of skin cancer. Avelumab, currently in Phase 2 development for MCC, is a fully human anti-PD-L1 IgG1 monoclonal antibody. It is being co-developed and co-commercialized by Merck KGaA (OTCPK:MKGAF) (OTCPK:MKGAY) and Pfizer (NYSE:PFE) under their November 2014 strategic alliance.
- Fast Track status provides for more frequent interactions with the FDA review team and a rolling review of the NDA.
- Rolls-Royce (OTCPK:RYCEY) plans to introduce more competition into the Trent engine overhaul network to address the demands of aircraft investors who have called for an independent second-hand market.
- The company also intends to expand its services business, including offers to manage fleet fuel for airlines.
- After a review of operations, AXIS Capital (NYSE:AXS) expects to cut about 100 jobs, primarily in its corporate and select insurance operations.
- The company will book a pre-tax reorganization charge of about $51M or $0.51 per share in Q3, and anticipates annual run-rate pre-tax cost savings of about $30M to mostly begin in 2016.
- The company reminds it announced a $300M accelerated buyback program in early August which is expected to be completed by year-end. The repurchase and dividend policies will be reviewed at the Dec. 2015 board meeting.
- Source: Press release
- Brookfield Asset Management (NYSE:BAM) plans to spin off about 35% of Brookfield Business Partners, through a special dividend estimated to be worth $500M, or $0.50 per share in the form of units of BPP.
- BPP will be the primary vehicle through which BAM will own and operate the business services and industrial operations of its private equity platform.
- Based on Brookfield's proportionate ownership, businesses owned by BPP generated about $200M of FFO last year and had an equity value of about $2B as of June 30.
- The spinoff is anticipated to happen in Q1.
- Source: Press release
- Tesla Motors (NASDAQ:TSLA) is lower in early trading after Baird reduces its rating to Neutral from Outperform.
- Baird reset expectations on the EV automaker after factoring in the pricing on the Model X. The estimate for FY16 EPS is lowered to $2.00 from $3.00.
- "With limited visibility to positive catalysts until the release of the Model III prototype, we are moving to the sidelines," reads the Baird note.
- Yesterday, Morgan Stanley lowered its price target on Tesla, but kept a strong long-term bull call in place.
- Previously: Tesla Motors lower after Morgan Stanley dials back Model X estimates (Oct. 06 2015)
- TSLA -1.72% premarket to $237.31.
- SunEdison (NYSE:SUNE) -2.7% premarket after it reportedly will not complete its planned $700M acquisition of Latin American Power, which walked away from its sale after SUNE failed to make a ~$400M upfront cash payment.
- A SUNE spokesman tells WSJ that Latin American Power’s owners did not satisfy conditions required for the deal’s completion, a claim a lawyer for Latin American Power rejects.
- The deal’s collapse adds to SUNE's difficulties; the company said yesterday it would lay off 15% of its workers and take a $30M-$40M writedown.
- Global Payments (NYSE:GPN) reports North America revenue rose 8% to $340.43M.
- Europe revenue +3.6% to $146.94M.
- Asia-Pacific revenue increased 30.1% to $49.58M.
- Segment Cash earnings : North America: $96.97M (+8.6%); Europe: $77.03M (+9.6%); Asia-Pacific: $13.81M (+102.3%).
- Cash operating margin increased 150 bps to 30.5%.
- The company declared two-for-one stock split in the form of a stock dividend.
- FY2016 Guidance: Adjusted total revenue: $2.06B to $2.10B (+6% to +8%); GAAP revenue: $2.87B to $2.95B (+4% to +6%); Cash EPS: $5.77 to $5.92 (+14% to 17%); GAAP diluted EPS: $4.70 to $4.85 (+14% to +18%).
- FQ1 results
- After three weeks of testimony, the first C8 (perfluorooctanoic acid) lawsuit against DuPont (NYSE:DD) has now gone to the jurors at a U.S. federal court in Ohio.
- Thousands of people have sued the company, saying they contracted a disease from exposure to the chemical DuPont disposed in the Ohio River for decades.
- Previously: Judge declines to dismiss C-8 case against DuPont (Sep. 25 2015)
- Previously: DuPont to face first trial over C-8 exposure (Sep. 14 2015)
- A global rally has S&P 500 futures in the green by 0.6%, and Nasdaq 100 by 0.8%.
- The Hang Seng shot higher by 3.1% overnight, with the Nikkei and Shanghai each up less than 1%, as is Europe at midday.
- The 10-year Treasury yield is up a big five basis points to 2.08%, gold is ahead $3 per ounce, and oil is sharply higher - now within a few cents of touching $50 per barrel.
- ETFs: SPY, QQQ, DIA, SH, SSO, SDS, VOO, IVV, UPRO, PSQ, SPXU, TQQQ, SPXL, RSP, SPXS, QID, SQQQ, QLD, DOG, DXD, RWL, UDOW, EPS, SDOW, DDM, VFINX, BXUB, QQEW, QQQE, SPLX, SFLA, BXUC, QQXT, SPUU, LLSP, UDPIX, OTPIX, RYARX
- An interim analysis of six-month data from a Phase 2 clinical trial evaluating Genocea Biosciences' (NASDAQ:GNCA) lead product candidate GEN-003 for the treatment of genital herpes showed a 58% reduction from baseline in the viral shedding rate (p<0.0001), the primary endpoint. The results were generated by the best performing dose of 60 ug per protein/75 ug of Matrix-M2 adjuvant. The data will be presented this Friday at IDWeek 2015 in San Diego, CA.
- In a secondary analysis based on patient-reported lesion rates, GEN-003 demonstrated statistically significant reductions from baseline in five of six dose groups ranging from 43% to 69%. The proportion of patients who received GEN-003 who were lesion-free at six months post dosing ranged from 30% to 50%, which was comparable to trial results observed with other oral antivirals. Time-to-first recurrence ranged from 152 days to more than 180 days. GEN-003 was well tolerated with no serious adverse effects seen.
- 12-month efficacy data is expected in Q1. An end-of-Phase 2 meeting with the FDA should happen in late 2016 followed by the initiation of a Phase 3 study.
- GEN-003 is a T cell-directed immunotherapy (therapeutic vaccine) designed to elicit both a T cell and B cell (antibody) response to HSV-2. It licensed the Matrix-M2 adjuvant from Novavax (NASDAQ:NVAX). Genital herpes affects ~400M people worldwide.
- The company will host a conference call this morning at 9:00 am ET to discuss the data.
- Shares are up 21% premarket on light volume.
- The UAW is likely to target a major Jeep complex in Toledo, Ohio with its planned strike tonight, according to reports. The automaker would have trouble catching up on lost Jeep production from the site.
- A total of three plants are expected to see walkouts at 11:59 p.m. unless a deal is worked out before then.
- A major sticking point between workers and Detroit automakers is how to adjust the two-tier wage system.
- Previously: UAW union gives strike notice to Fiat Chrysler Automobiles (Oct. 06 2015)
- Net income of $99.8M, or $0.74 per diluted share vs. $99.1M, or $0.73 per diluted share a year ago.
- Net sales of $1.24B increased 3.2% compared to last year. Segment sales: Industrial -4.5%; Consumer +8%.
- The company lowered its earnings per diluted share guidance for fiscal 2016 to $2.50, from approximately $2.55.
- FQ1 results
- Allegiant Travel (NASDAQ:ALGT) reports revenue passenger miles increased 15.5% to 484.34M in September.
- Capacity rose 21% to 584.22M available seat miles during the month as additional flights to Hawaii factored in.
- September load factor fell 400 bps to 82.8%.
- Q3 load factor declined 320 bps to 87.3%.
- The company expects a capacity increase of 22% to 26% in Q4 as it stays on an aggressive growth track.
7:12 AM| 7:12 AM | Comment!
- The FDA approves Luminex's (NASDAQ:LMNX) ARIES molecular diagnostics system. The product features internal barcode scanning to minimize operator errors and two independent modules that each support up to six cassettes to accommodate STAT and batch testing.
- The company's test for Herpes Simplex Virus 1 and 2 was also approved.
- The formal market introduction of the system will happen at the Association for Molecular Pathology annual meeting in Austin, TX, November 4-7.
- Management will host a conference call this morning at 8:30 am ET to discuss the products.
7:03 AM| 7:03 AM | Comment!
- S&P +0.50%.
- 10-yr -0.21%.
- Euro -0.19% vs. dollar.
- Crude +1.79% to $49.41.
- Gold +0.11% to $1,147.70.
- Endorsing co-founder Jack Dorsey's appointment as chief executive, Saudi billionaire investor Prince Alwaleed bin Talal and his investment company Kingdom Holding have raised their stake in Twitter (NYSE:TWTR) to 5% - making them the second largest investors in the social media company.
- Alwaleed now holds 30.1M shares and Kingdom 4.85M, including stock purchased prior to Twitter's initial public offering in November 2013. The combined stake has a market value of about $1B.
- TWTR +0.3% premarket
- Japan +0.75%.
- Hong Kong +3.13%.
- China Closed.
- India +0.49%.
- London +0.36%.
- Paris +0.73%.
- Frankfurt +0.96%.
- Airbus (OTCPK:EADSY) has called off talks with Bombardier over supporting the troubled CSeries jet, leaving the Canadian plane maker with few options to break into the 100-160 seat airplane market.
- Under a proposed tie-up, Airbus would have helped Bombardier (OTCQX:BDRAF, OTCQX:BDRBF) complete development of the troubled CSeries in exchange for a controlling stake in the program.
- Bombardier, which has so far received a total of 243 firm orders for the jet, was unable to win a single order for the plane at the Paris airshow in June.
- Previously: Reuters: Bombardier offered majority stake in CSeries jet to Airbus (Oct. 06 2015)
- Oil prices are on the rise again following a near 5% jump on Tuesday.
- The surge is being triggered by data from the American Petroleum Institute showing a 1.2M barrel decrease in crude stocks last week, expectations of increasing demand from the Energy Information Administration, and comments by OPEC chief Abdalla Salem el-Badri anticipating big cuts to oil investment.
- The commodity has now rallied more than 27% from its August low, and is up 2.3% at $49.62/bbl. U.S. oil market figures from the EIA are also due at 10:30 a.m. ET.
- ETFs: USO, OIL, UCO, UWTI, SCO, BNO, DBO, DWTI, DTO, USL, DNO, OLO, SZO, OLEM
- Despite a new raised bid, it looks like SABMiller (OTCPK:SBMRY) is poised to turn down another takeover offer from Anheuser-Busch InBev (NYSE:BUD).
- "Today's £42.15 proposal is only £0.15 higher than the £42 proposal considered and rejected on October 5," SABMiller said in a statement. "AB InBev is very substantially undervaluing SABMiller."
- The £42.15/share in cash bid would value the group at £68.2B ($104B) and translate into the largest takeover of 2015.
- Previously: AB InBev raises takeover offer for SABMiller (Oct. 07 2015)
- Volkswagen (OTCQX:VLKAY) will launch a recall for cars affected by its diesel emissions crisis in January and complete the fix by the end of next year, CEO Matthias Mueller said in an interview with Frankfurter Allgemeine Zeitung.
- Mueller also told the German newspaper he believed only a few employees were involved in the scandal, refuting the notion that his predecessor, Martin Winterkorn, must have known about it.
- Volkswagen investors will also be watching the automaker's special board meeting today and a U.S. congressional probe starting tomorrow.
- Nokia (NYSE:NOK) executives are set to dominate the new leadership team that will arise following its proposed acquisition of Alcatel-Lucent (NYSE:ALU).
- Chief Financial Officer Timo Ihamuotila will stay in his job and altogether 10 out of a total 13 members in the planned leadership group will come from Nokia.
- The €15.6B all-share acquisition is still on track to close in the first half of 2016.
- Two of China's biggest tech startups are said to have agreed to a merger, creating a $15B company that would be the country’s biggest online-to-offline provider of local services like movie tickets and restaurant bookings.
- The combination of Meituan.com, part-owned by Alibaba (NYSE:BABA), with Tencent (OTCPK:TCEHY)-backed Dianping.com may be announced as soon as Thursday - the latest consolidation of Chinese Internet firms this year.
- American Apparel (NYSEMKT:APP) is planning to revamp its struggling fashion business under a restructuring plan that would give ownership to Standard General, the same hedge fund which rescued RadioShack earlier this year.
- Shares in American Apparel, the country's largest "Made in the U.S.A" brand, were suspended from trading on Tuesday ahead of their delisting from NYSE MKT.
- Anheuser-Busch InBev (NYSE:BUD) has raised its bid for SABMiller (OTCPK:SBMRY), proposing to buy the group for for £42.15 per share in cash and valuing the group at £68.2B ($104B).
- The move comes after the British firm rejected two earlier proposals at £38/share and £40/share.
- AB InBev expects most investors to accept the higher cash offer, and Altria (NYSE:MO) (SABMiller's largest shareholder with a 27% stake) has already given the bid a green light.
- Previously: NY Post: Anheuser-Busch InBev won't go hostile with SABMiller (Oct. 06 2015)
- Previously: Bloomberg: SABMiller shoots down AB InBev offer (Oct. 06 2015)
- China's foreign exchange reserves posted their largest quarterly decline on record in July-September, as the central bank intervened to stabilize the yuan after an unexpected devaluation of the currency jolted global markets.
- The country's foreign reserves, the world's largest, dropped $43.3B to $3.514T last month (the lowest since July 2013), and were down by about $180B for the third quarter.
- ETFs: CYB, CNY, FXCH
- Samsung Electronics (OTC:SSNLF) shares surged the most in more than two years today after the tech giants's Q3 guidance blew past expectations, suggesting the company is getting back on track after a number of weak quarters.
- Samsung estimated its operating income rose 79.8% on year to 7.3T won ($6.29 B), as a renewed reliance on its semiconductor business offset weak performance at its smartphone division.
- Samsung Electronics +8.7% to 1.251M won.
- The Bank of Japan has held off on expanding its record stimulus, signaling a belief that inflation will hit a 2% target despite troubling signs in the economy.
- Although the central bank left its annual asset purchases at ¥80T, some are betting on additional easing at a crucial policy meeting on October 30, when the BOJ is expected to cut its long-term economic and price forecasts.
- Nikkei +0.8% to 18334.12
- ETFs: DXJ, EWJ, DFJ, DBJP, NKY, JOF, EZJ, JEQ, JPNL, DXJS, EWV, SCJ, HEWJ, JSC, JPP, QJPN, FJP, JPMV, DXJT, DXJC, DXJR, DXJH, JHDG, DXJF, HGJP, JDG, HEGJ, JPN
- Re/code reports Pandora (NYSE:P) "appears close" to acquiring Ticketfly, an online ticket agency that specializes in events at smaller venues (rather than competing directly with the likes of StubHub and Ticketmaster for events at bigger venues). Sources state Pandora plans to pay ~$450M in cash and stock.
- For reference, Pandora has a current market cap of $4.7B. Buying Ticketfly would represent a major attempt by Pandora to diversify beyond its core Web/mobile radio business, as it deals with Spotify, Apple, Amazon, Google, TuneIn, and a slew of other rivals.
- Opportunities could exist for Pandora to cross-promote Ticketfly music events to its ~80M active listeners. In May, Pandora announced the purchase of music analytics firm Next Big Sound.
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