Categories ArchivesUncategorised

– BG Group plc (BG/ LN): Despite crude prices further collapsing and … PLEASE GO TO CLIENT SECTION – Home Retail Group (HOME LN): Public comments by Home Retail shareholders … PLEASE GO TO CLIENT SECTION – Xchanging plc (XCH LN): Xchanging urges shareholders to accept CSC’s GBp 190 cash offer. Although …PLEASE GO TO CLIENT SECTION – Syngenta AG (SYNN VX): Chemchina, the Chinese giant group which is rumoured to be in process of trying to successfully acquire Syngenta for CHF470-500 cash per share, announced ….PLEASE GO TO CLIENT SECTION

– Kuoni Reisen Holding AG (KUNN SW): After Bloomberg reported yesterday afternoon that according to people familiar with the matter, EQT Partners has emerged as a strong contender among other financial investors to take Kuoni private, Kuoni confirmed this morning it has received preliminary approaches from third parties regarding a potential offer for the Kuoni Group and its businesses. These statements/rumours follow Nov-15 news that Kuoni had appointed a new CEO and mid-Dec Swiss reports that it had hired Credit Suisse and Morgan Stanley to examine options for the group and find potential buyers for any of the 3 group units. Kuoni currently consists of 3 units: i) Global Travel Distribution (GTD) which is a travel distributor that provides travel companies with  access to hotel accommodation and destination services. (CHF 2bn in revenues; low ...

NEW POSITIONS/AMENDMENTS: Imperial Tobacco Group plc (IMT LN): buy below GBP 35 DELETIONS: Wincor Nixdorf (WIN GY):  sell able EUR 48: firm offer materialized Allergan (AGN US): sell above $ 320 – firm offer materialized Al Noor Hospitals (ANH LN): No counterbid materialized – price remained static EXISTING RECOMMENDATIONS: Syngenta AG (SYNN VX): Initial position below CHF 370 Cable & Wireless Communications (CWC LN): Around GBp 76 Telecity/Equinix spread (TCY LN/EQIX US): above GBP 0.25 SAB Miller (SAB LN): buy in low GBp 3900s – sell in high GBp 4000s Deutsche Wohnen: Around EUR 24 (better standalone/downside valuation – with increased pressure for Vonovia cash bump) Melrose plc (MRO LN): GBp 260-270 Sulzer (SUN SW): short above CHF 100 Rexam (REX ...

We like Imperial Tobacco plc (IMT LN) at GBP 34 levels because of its standalone valuation support added with a higher than previous probability that the likes of British American Tobacco plc (BATS LN) will move on Imperial. Near-term downside GBP 31-33. Near-term upside GBP 38-41. Imperial Tobacco is the fifth largest, global tobacco company with a number 2 position in Europe and number 3 in the US. On 20 November 2015, FT Alphaville reported that “advisers to BAT” have put together a group of banks to finance a possible deal – although article stated that “No approach has been made, with no certainty one ever will be, people claiming direct knowledge of the process have told FT Alphaville. All that’s happened so far is that advisers to BAT ...

NEW POSITIONS/AMENDMENTS: Syngenta AG (SYNN VX): Initial position below CHF 370 Cable & Wireless Communications (CWC LN): Around GBp 76 Telecity/Equinix spread (TCY LN/EQIX US): above GBP 0.25 (Tightened from Gbp 50 to 20 on EC phase 1 approval) SAB Miller (SAB LN): GBp 3950 (firm 2.7 announcement at GBp 4400) Deutsche Wohnen: Around EUR 24 (better standalone/downside valuation – with increased pressure for Vonovia cash bump) DELETIONS: Delhaize NV (DELB BB): Rallied on the back of strong Ahold 3Q15 results EXISTING RECOMMENDATIONS: Wincor Nixdorf (WIN GY): below EUR 45 Melrose plc (MRO LN): GBp 260-270 Allergan (AGN US): below USD 304 Sulzer (SUN SW): short above CHF 100 Rexam (REX LN): below GBp 520 Smurfit Kappa (SKG ID): below EUR ...

Wincor Nixdorf (WIN GY): below EUR 45 SAB Miller (SAB LN): low GBP 3900 Telecity/Equinix spread (TCY LN/EQIX US): above GBP 0.5 Delhaize NV (DELB BB): Below EUR 80 Melrose plc (MRO LN): GBp 260-270 Allergan (AGN US): below USD 304 Sulzer (SUN SW): short above CHF 100 Rexam (REX LN): below GBp 520 Smurfit Kappa (SKG ID): below EUR 25 BG/RDSB spread (BG/ LN – RDSA LN): above GBp 100 Al Noor Hospitals (ANH LN): below GBp 1170

Attractive and accretive deal for Arris, which has gone through massive M&A expansion since 2012 (if successful in closing this deal, it will have grown revenues to more than USD 8bn vs USD 1.35bn) and which will solidify ARRIS’ position in the set top box market, with the combined company controlling about 25% of the global market (with the next largest competitors Samsung and Cisco each at 7.2% of the market): accretion of deal is driven by both tax and operational synergies: out of targeted USD 0.45-0.55 EPS or 15-25% accretion, slightly more than half of USD 0.25-0.30 accretion is driven by operational synergies and USD 0.20-0.30 driven by tax synergies. HOWEVER unattractive situation given a) long dated 9 month ...

Attractive and accretive deal for Arris, which has gone through massive M&A expansion since 2012 (if successful in closing this deal, it will have grown revenues to more than USD 8bn vs USD 1.35bn) and which will solidify ARRIS’ position in the set top box market, with the combined company controlling about 25% of the global market (with the next largest competitors Samsung and Cisco each at 7.2% of the market): accretion of deal is driven by both tax and operational synergies: out of targeted USD 0.45-0.55 EPS or 15-25% accretion, slightly more than half of USD 0.25-0.30 accretion is driven by operational synergies and USD 0.20-0.30 driven by tax synergies. Please get access to the Client section to get ...

Please contact us to get access to our Client Section to read about great investment opportunity on the back of Royal Dutch Shell’s large scale acquisition of BG Group Plc.

We believe a long position in BG/ LN at current GBp 1150-1180 levels represents an attractive short-term trading buy given it is a play on three drivers of upside, namely 1) tightening of the announced BG/RDSB deal spread which currently is trading at more than 10% pa; 2) some reversion of the aggressive 10% price drop in RDSB; and 3) still limited but present interloper risk. Given the large institutional selling in BG, BG/RDSB deal spread at 10% pa (on Feb-16 closing) is currently much wider than all the other long dated European deals which on average trade around 5-6% pa. Once some of these sell flows will dissipate in the near term, we believe this spread should largely trade ...