Friday Briefing-May 20, 2016: Bayer Makes an Offer for Monsanto

May 20, 2016


Bayer stirred up the reactions from the crowd after Monsanto said it received an unsolicited offer from Bayer. If the deal could actually reach completion, it would be the biggest foreign acquisition corporate Germany has even seen. Unfortunately, Bayer shareholders take no interest in the deal, sending the company’s shares down 8.2%. But, it is enough to place Monsanto and Bayer in the list of Sentifi Top Attentions.


1/ Monsanto Company: Receives offer from Bayer [869% increase in voices in the last 24h]

Monsanto enjoys the prospect of being acquired by Bayer.

The world’s largest seed maker Monsanto revealed Bayer approached it with an unsolicited offer. The company’s shares increased more than 4%, while Bayer’s shares hit the lowest level in three years after falling 8.2%. Monsanto has a market value of $42 billion, so the deal is expected to be at least that amount. Many analysts say this may turn out to be a bad deal for Bayer as Monsanto is facing falling profits and declining prices.



2/ Technip: Merges with rival FMC Technologies [746% increase in voices in the last 24h]

The merger will crease a $13 billion new company named TechnipFMC, posing as a potential rival to the world’s largest oil-services companies Halliburton and Schlumberger. After the merger, Technip’s shares rose 6.3% while FMC suffered a 4% drop in its shares.

3/ Thomas Cook Group Plc: Shares plunge on weakening travel demand due to terrorist attacks [717% increase in voices in the last 24h]

Terrorism threats drag down summer holiday travel demand and the shares of Thomas Cook. They dropped 18% to a three-year low after the company warned full-year profit would miss expectation. Summer bookings drop 5% year over year, and tourists decide to stay aways from Turkey and Belgium. The crash of EgyptAir’s flight from Paris to Cairo ia another nail in the coffin of summer traveling.

4/ Kinder Morgan Inc: Faces lawsuits that could end its pipeline expansion [593% increase in voices in the last 24h]

The Texas-based Kinder Morgan plans to add 987 kilometres of pipeline to triple the capacity of the oil transporting system from Alberta’s tar sands to ports and refineries in Vancouver and Washington. But, the company has a disastrous record with at least 1,800 oil and chemical spill violations since 1997 and more than $2 billion in international fines. Thus, First Nations, a group of Indigenous leaders, politicians, and civil society organizations, plan to take legal actions against the company. They are predicted to have a 97% victory rate.

5/ Royal Mail: Profit drops as competition is on the rise [557% increase in voices in the last 24h]

The postal delivery company reported full-year pre-tax profits dropped 33% though revenue rose 1%. The company plans more cost-cutting plans to improve margin and to stay competitive in an increasingly competitive environment. The shares fell over 3% following the news.

6/ Bayer: Plans to make the biggest foreign acquisition in the history of corporate Germany [507% increase in voices in the last 24h]

The Bayer-Monsanto marriage, if it happens, will create the world’s largest agricultural supplier, which is the reason why this deal will face a lot of antitrust hurdles. The deal could be valued at more than $60 billion, and given the fact that Bayer is one of the most aggressive and successful acquirers among German corporates, the deal could may as well happen.

7/ Castrol India Ltd: BP sells stake in Castrol India [400% increase in voices in the last 24h]

BP sells partial stake, which is 11.5% from 71%, in Castrol India, and reassures the company that it will remain as a majority shareholders and maintain its commitment to Indian business. BP revealed it sold the stake to a range of domestic and international investors.

8/ Asda Stores Limited: Sales fall on tough competition [377% increase in voices in the last 24h]

File photos of Tesco, Asda, Sainsbury's and Morrisons supermarkets, as Morrisons has seen the largest sales growth among the Big Four supermarkets for the second month in a row after it was saved at the last minute from being kicked out of London's blue chip index.
Asda is facing fierce competition from the rest of the “big four.”

The company posted a 5.7% fall in sales for the first three months of the year as the number of shoppers visiting its stores in the first quarter dropped 5%. It said it’s on track to slash costs including cutting hundreds of jobs in the U.K.




9/ Kuka: The crowd is still talking about its potential merger with Midea Group [347% increase in voices in the last 24h]

The analysts are discussing about the potential of this deal, as Kuka will add more business diversification to Midea, and that Midea will not invest further in Kuka as it is capable of generating sufficient cash flows. Midea’s management said they would like to keep Kuka as an independent company, and the analysts predict the final acquisitions will be lower than 29.2 billion yuan.

10/ Punjab National Bank: PNB Housing Finance goes for listing [340% increase in voices in the last 24h]

PNB Housing Finance Ltd (PHFL) plans to go for listing in 2016-2017. It’s a part of its parent Punjab National Bank’s plan to monetize its investment. The bank also wants to retain majority ownership after diluting its stake. PHFL reported a 66% increase in net profit in 2015-2016.

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