– BG Group plc: Crucial Shell vote has kicked off (with room less than half full) – to be followed live here: communication of shareholder approval (or not) for BG deal will not be immediately communicated following the vote, but will communicated later today in a separate release (we would assume early PM today). The tension…
– Kuoni Reisen Holding AG (KUNN SW): Swiss publication Finanz und Wirtschaft reporting that the sale of all 3 divisions of Kuoni in one package is just a matter of days, according to 3 sources close to Kuoni. Although we continue to like the situation and believe the sale is imminent, the price above CHF 310 might have run ahead of itself, and now we are coming in territory that an under-bid might be possible too: we would be sellers of 1/3 of our position above CHF 310 of what we initiated earlier in January in low CHF 280s.
– Ten Cate (KTC NA): Gilde confirms that its offer is now unconditional, with all conditions for completion satisfied or waived. 85.8% of shares tendered. Settlement Jan 29. Post acceptance period starts today and ends Feb 9. Exactly as how we scripted it. Although Gilde played it very patiently, the implosion of the general equity markets was on their side to get this one across the finish line – with a nominal bump. Similar as Scandinavian deals, we always like Dutch deals given larger chance of bump scenario.
– Home Retail Group plc (HOME LN): Times reported that Qatar which owns 25% of Sainsbury’s is ready to back new bid for HRG, and would be comfortable with any price up to GBp 170 a share. It is also understood Sainsbury’s is keen to try to agree the outline of a deal with Home Retail ahead of the PUSU deadline or make enough progress that the panel agrees to grant an extension. Pre-deal dynamics are probably accelerating at this stage (with no real stubborn/ resistance indication of Home Retail yet), and recent news flow over last couple of days have most likely increased any recommended cash/shares offer price for Home Retail from the GBp 140-160 range to GBp 150-170 range. Wait for nervousness/share price weakness towards GBp 130 to initiate again.