– No new European situations
– SABMiller plc (SAB LN): Companies extend PUSU deadline by 1 week till 5pm on o4 November – small procedural extension to allow both companies to firm up 2.7 announcement. Recommended buy in low GBP 39s – expect to trade GBP 40.25-40.75 on firm deal announcement.
– Rexam plc (REX LN): PARR (regulatory news service) article highlighting that in response to last week’s EC Statement of Objections, third parties are highlighting that network effects will even more disproportionately benefit the Rexam/Ball tie up. Should the EC follow the view of these third parties, a remedy package will need to be much more comprehensive. We are coming in crucial phase where a deal looks only still possible if a) there would be a large scale one buyer that can provide equal large, EU wide network scale; and b) parties will be willing to cross their USD 1.58bn divestiture cap. Limited 5-10% downside. One to buy on aggressive, negative EC headlines in low GBP 500s.