Ten Cate NV (KTC NA): Gilde and Ten Cate jointly removed 2 items from today’s EGM, highlighting that item 4 (Conditional discharge members of the Executive Board) and item 5 (Conditional discharge members of the Supervisory Board) should not operate as a condition to the Offer. The granting of full release and full and final discharge to the members of the Boards, by simple majority of today’s voting stock, was in fact a condition (see condition 3.9 in offer document) to the offer. Waiver looks like small procedural thing and highlights some of the flaws with respect to the management’s fiduciary duties and Gilde’s offer background (according to Dutch press, another PE group HAL Investments also had shown interest in Ten Cate, but got the door slammed upon).  Waiver also highlights that bidder Gilde might have been nervous of getting the required 50% approval quorum from Ten Cate shareholders to approve these resolutions. Further highlights that current offer looks very fragile and will only succeed if Gilde improves its offer. 

BG Group (BG/ LN): UK weekend press re-confirming that MOFCOM approval should come before Christmas, with Sunday Telegraph stating that approval is imminent and Sunday Times stating it will come in the next 2 weeks. Small, comment pieces however don’t comment what kind of remedies or conditions would be required. Last phase of regulatory process seems to be steaming ahead, with critical Shell vote still on course for Jan/Feb-16. Would hold on setting up more spreads now, giving continued crude price weakness.

Electrolux AB (ELUXB SS):  GE has terminated the contract to sell its Appliance business to Electrolux and has asked for a USD175m penalty fee. With appeal cases at FTC notoriously hard to win (recent win by Synergy/Steris proved the exception), the appeal process looked very tough for parties to win (trial process was still ongoing, however should be terminated now), and hence just decided to throw in the towel. Electrolux was general long event consensus name, where sell side argued limited downside should deal fail. Ceased to be event stock now, will trade solely on (updated) fundamentals (with failed deal one-off costs representing about SEK7 per share).

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