Monday, October 24, 2016

Wall Street : in progress, with mergers and acquisitions –

( — Wall Street is pointing higher on Monday, with the news provided mergers and acquisitions, dominated by the offer ofAT&T on Time Warner… The DJIA is currently 0,52% to 18.239 pts, while the Nasdaq advance of 0.92% to 5.306 points. The S&P500 gained 0,52% to 2.152 points.

The index of national activity from the Chicago Fed for the month of September 2016 remained slightly negative -0,14, against -0,72 for reading revised-August 2016. A negative index indicates an expansion lower than normal.

The PMI manufacturing index us spring to 53.2 in October, compared with 51.6 consensus and a 51.5 in the previous month. The production and new orders posted their rate of expansion the fastest in over a year. A good omen ahead of the presidential election, often cited as the cause of the slowdown in spending and investment in recent months.

William Dudley (president of the New York Fed), James Bullard (Fed St. Louis), Charles Evans (Chicago Fed) and Jerome Powell (governor of the Fed), will take place today.

The quarterly continues with a steady pace on Wall Street. Kimberly Clark and VF Corp have announced before stock market, while Rambus or Visa publish after the closing.

Note that the two largest-cap rating american announce this week. Apple publishes after the market tomorrow, whereasAlphabet (Google) is expected Thursday evening.


AT&T (-2%), telecom giant american, flexes quite heavily on Wall Street. The title of the colossus of the media Time Warner (-2%) decreased in the same proportions. The operators remain visibly cautious regarding the offer to repurchase more than $ 85 billion made during the weekend by AT&T, who intends to offer Time Warner. According to some analysts cited by Reuters, AT&T could avoid the obstacle of the FCC, the national regulator of telecommunications, in separating itself from the assets of Time Warner.

Saturday evening, of the firm of Dallas-based AT&T has confirmed the rumors of the market, unveiling an offer for the acquisition of Time Warner. The group will need the approval of the u.s. Department of Justice, and shall determine what licenses the FCC for Time Warner to transfer in the framework of the operation. The course will be whatever it is fraught with pitfalls, before a possible agreement of the antitrust american.

The transaction in cash and shares valued Time Warner 107,5$ per title on the basis of the last quoted prior to the announcement, representing a 20% premium on Friday’s close. The shareholders of Time Warner would 53,75$ in cash and 53,75$ in securities, AT&T, for each of their shares. Randall Stephenson, CEO of AT&T, sees in this merger a “perfect fit”, may bring “an approach new in the way of work of media industries, and communications.

taking Into account the debt of Time Warner, the operation reached a total amount of 108,7 us$ Bn . Once the transaction is eventually finalized, the current shareholders of the media group would own between of 14.4 and 15.7% of the capital of the new entity. AT&T expects an accretive impact from the first year, and is forecasting$ 1 billion of annual synergies of expenditure three years after the finalization. AT&T has, on the side of the financing commitments for a bridge loan of 40 us$ Bn .

Rockwell Collins (-6%) announced the repurchase of the programmed of his fellow countryman, B/E Aerospace (+15%), a specialist in interiors of aircraft, for $ 6.4 billion. A sum that in fact the most important external growth transaction in the history of the oem aerospace american. Taking into account the debt of$ 1.9 bn of the competitor of Zodiac, the operation will be 8.3 Bn$ .

In detail, Rockwell Collins offers 34,10$ in cash and 27,90 dollars in shares for each security of its target, or 62 dollars in total. An amount that reflects a premium of 23% compared to the closing price of B/E Aerospace on Friday night at Wall Street. The transaction, approved by the boards of directors of both groups, should be finalized in early 2017. It should result in synergies of approximately$ 160 Million and a two-digit increase in earnings per share from the first full year.

the products of The two groups are complementary. Rockwell specializes in avionics and is especially known for its flight control systems and connectivity of the cabins, while B/E Aerospace is a supplier of seats and other equipment for the cabin.

TD Ameritrade (-3%) has announced its intention to repurchase the firm’s Scottrade Financial Services in the context of a transaction in cash and shares, for an amount of $ 4 billion. The broker ‘discount’ american anticipates annual cost synergies of$ 450 Million … The group of Omaha has published its accounts in 2016. For the fiscal year ended at the end of September 2016, diluted eps came in at$ 1.58 or , record level, for a net profit of 842 Million$ . Revenues were $ 3.3 Bn$ , with a profit before tax of 1.3 billion usd, representing 38% of revenues. Ebitda reached 1.5 billion usd or 45% of revenue. Finally, the group plans for the year 2017, a diluted eps from $ 1.50 to$ 1.80 .

Kimberly-Clark (-3%) fixes to Wall Street, the group, which issued a warning on its annual results, in the wake of the publication of a third quarter below expectations. The group for the brands Kleenex or Huggies has achieved in the 3rd fiscal quarter a net profit of$ 550 Million or$ 1.52 per share, compared with 517 Million and$ 88 cents per title a year before. The adjusted eps came to 1.52$ quarter ended, compared to 1,54$ of consensus. Revenues were $ 4.6 us$ Bn , compared to 4.7 us$ Bn a year earlier and 4.7 us$ Bn consensus instead.

The group is now forecasting a growth in annual sales of 2%, whereas this increase was previously expected in the lower range of 3-5%. The adjusted eps for the year is anticipated between 5,95 and 6.05 per$ , compared to a guidance earlier ranging from 5.95 to$ 6.15 per title. The restructuring program is expected to be completed by the end of the year.

VF Corp (-1%) and declines on Wall Street, the group has lowered its annual forecasts. For the third fiscal quarter, net income amounted to$ 499 Million or$ 1.19 per title, against 460 Million and$ 1.07 per share a year before. The consensus was housed to$ 1.15 eps. The quarterly revenue stood at 3.49 us$ Bn , in a very slight decline in year-on-year, compared to 3.6 us$ Bn consensus. The income from activities ‘jeans’, including the brands Lee and Wrangler, fell 6%. The brands Vans or Timberland outperformed. VF Corp. door its quarterly dividend to 42 cents, up 14%.

The group now expects revenues 2016 increase of 2% to around 12.2 Bn$ , while it provided before a growth of 3-4%. The bpa is expected to increase by 3% on the year to 3,13$ 3,20$ previously envisaged.

T-Mobile US (+7%), the operator ‘wireless’ u.s., has released for its third fiscal quarter, which closed at the end of September, revenue growth of 18% to 9.2 Bn$ . The net profit amounted to$ 366 Million and 42 cents per security, compared to 138 Million and$ 15 cents per share a year earlier. The consensus was 23 cents of eps quarterly 9.4 Bn$ of income.

Hilton (+1%). HNA Group is continuing its market. After the recent redemptions of the lessor of aircraft, CIT Group, Carlson group Hotels or even Switzerland Gategroup, the conglomerate chinese will put the hand on 25% of Hilton Worldwide. The asian giant will shell out $ 6.5 billion, or $ 26,25$ per share, to buy back this stake to Blackstone. The firm of private equity will not be more than 21% of the group’s american hotel at the end of the transaction. The transaction is expected to be closed in the first quarter of 2017.

Restaurant Brands (-4%), the owner of chains Tim Hortons and Burger King, are revealed in the quarterly above expectations, benefiting from the lower costs. The group based in Ontario has recorded three months ended end of September, a net income of $ 86.3 million, or 36 cents per security, compared with a profit of 49.6 M$ or an eps of 24 cents a year earlier. The adjusted eps spring to 43 cents from 40 cents consensus. The sales increase of 5.5% to 1.08 billion usd . Like for like sales of Burger King have increased by 1.7% compared to an increase of 6.2% a year earlier while those of Tim Hortons were up 2% (+5,3% a year before).

Rockwell Automation (-2%) yield of the field after the denial of Schneider. Schneider Electric has cut short the rumors. Following the speculation of the end of last week indicating a possible interest of the French group for Rockwell Automation, the French group “categorically denies these rumors”. The action of the american group flew more than 20% Friday after an article of ‘StreetInsider’ referring to a possible offer of Schneider valuing Rockwell Automation 18 us$ Bn .

— ©2016,


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