News – Business & Economi

The Chinese authorities have ordered several public companies to explore investment banks with different options to impede the bid for 30 billion euros of BHP Billiton Potash, it was learned from informed sources directly file.

Following these instructions, the chemicals group Sinochem has held meetings with several banks which include Citigroup, HSBC and Morgan Stanley, said the source.

One option being considered is an alliance between Sinochem and the sovereign wealth fund CIC, said a second source familiar with the matter.

The instructions given by Beijing, which demonstrates that the Chinese authorities take seriously the hypothesis of a takeover by BHP and Potash its possible implications on the price and supply of fertilizer, despite obstacles that would surely meet a cons-offer.

Sinochem has declined comment. CIC could not be reached immediately. The banks mentioned were refused comment.

The sources spoke on condition of anonymity because they are not authorized to speak publicly on the matter.

Warren Buffett has filed a formal offer for the purchase by Berkshire Hathaway of its 19.9% stake it does not already own in Wesco Financial.

Wesco, which is headquartered in Pasadena, California, is run by Charlie Munger, vice chairman of Berkshire Hathaway.

The transaction in cash and stock should be around 500 million dollars (390 million euros) on the basis of book value at Wesco dated June 30His actual amount will be determined on the basis of the carrying value of the company at the time of the closing of the transaction Warren Buffett hopes that it will happen this year.

In a statement, Wesco said it had established a committee of three independent directors to consider the offer from Berkshire fast cash.There is no guarantee that the transaction is concluded, says the company is mainly active in insurance, furniture rental, and steel.

Warren Buffett, who is aged 80 years, has announced its intention to redeem the remaining Wesco August 26, which has resulted in a leap of 11.8% per share this year.

Wednesday, the stock closed up 46 cents at $ 363, giving the 19.9% stake coveted by Berkshire market capitalization of 514 million.

Berkshire had acquired 80.1% stake in Wesco there are more than 30 years. Charlie Munger, aged 86, is CEO of the group since 1984 and has parallel Vice-Chairman of Berkshire since 1978.

Camaieu reported Monday a net profit increase of 4.8% in the first half of 2010 to 379,000,000 euros, through improving its margins helped offset sales penalized by a late start balances summer.

The French distributor of ready-to-wear said it had an operating profit up 12.4% over the first six months of the year, to 54.3 million euros.

Its sales have in turn increased 9% to 379.2 million euros.

In its statement, however, stressed that Camaïeu same perimeter and exchange rates, turnover fell 3.9%.

"Business was badly affected by the summer sales period was extended by one week in July rather than June, but was offset by improved margins on sales," said Camaieu .

The group also said to have opened 39 stores since the beginning of the year, bringing its fleet to 894 stores including 342 abroad.

At the Paris Bourse, the action Camaïeu closed Monday at 158.48 euros, up 5.65%.

The U.S. markets have opened higher on Thursday, reacting positively to an unexpected improvement in the labor market in the United States.

A few minutes after the start of trading, the Dow Jones gained 0.28% to 10,087.98 points, the Standard & Poor's 500 index 0.38% to 1159.29 points and the Nasdaq Composite 2148.66 0.33% points.

The markets were reassured by a larger decline than expected enrollment in weekly unemployment in the United States during the week to August 21, at 473 000 504 000 cons last week.

As for values, Dell noted Thursday his company bid on the data storage 3PAR to 24.30 dollars per share, a superior proposal to that presented by Hewlett-Packard.The IT group has indicated that the Board of Directors 3PAR has accepted his offer.

Titles took Dell and HP respectively 0.8% and 0.75% at the opening, while the title 3PAR lost 1.9%.

While the earnings season ends business in the United States, optimism about the earnings outlook for the third quarter gradually eroded as investors fearing that the weak demand reflected by the indicators Macroeconomic weigh on sales and margins of listed companies.

While only a handful of companies in the Standard & Poor's 500 has not yet submitted its accounts, the average growth index of profits in the second quarter stood at 38.4% compared to the corresponding period of the Last year, according to data from Thomson Reuters.

Such performance is unlikely to be equaled in the third quarter.The estimates, which are currently still at the level they were in early July, predicting earnings growth of 24.9% over one year.

"It could well be one of the last quarter for which the results are as good as mine.There is already, for example, they slow down or they're to move downward for 2011, "said Pankaj Patel, analyst at Credit Suisse in New York.

If 75% of the S & P 500 have exceeded estimates in the second quarter, compared to an historical average of 62%, many observers believe that profit margins could well have peaked.

Productivity has in fact declined by 0.9% over the same period, suggesting that companies may well find themselves unable to maintain their level of profitability.

ESTIMATES TOO OPTIMISTIC?

The average margin for the S & P 500 was 8.9% in April-June, against 6.2% a year earlier, according to Howard Silverblatt, an analyst at Standard & Poor's.

The disappointing economic indicators published in recent weeks, particularly on the employment front, began to be integrated into the course: the S & P 500 has a 0.7% drop since July 12, the start of the season results .

"There are many headwinds (…) and if you start to take them into account, we see that some numbers may be too optimistic," said Alan Lancz, president of Alan B. Lancz & Associates, an investment consulting firm.

The second part of the earnings season has been worse than the first.Of more than 2,000 U.S. companies announced their accounts, more than 70% have exceeded analysts' estimates during the first half of the period of publication, but this ratio fell to 66% by the end of the season, according to analysts at the company Studies Bespoke Investment Group.

For the third quarter, the estimates should not change much more until early October.

"Unless exceptional economic event (…) a major change in numbers is unlikely" for at least several weeks, Judge John Butters, head of U.S. monitoring results, Thomson Reuters.

The restatement of financial results of listed companies has been a major driver of the rebound in the S & P 500 from the lowest 12 years hit early in March 2009 and since then, the index rose by 58%.

Sanofi-Aventis could make a first offer around $ 70 per share to acquire U.S. biotech Genzyme, analysts said.

Some consider that the French pharmaceutical group may raise its offer to $ 80.

Under cover of anonymity, one analyst said that "70 dollars would be a first offer" and that "at $ 80 it remains a good deal for Sanofi.

Same story for another sector specialist who believes that $ 80 "operation creates value in three years that will follow."

Citigroup, meanwhile, said that Sanofi will likely be the only buyer of American specialist on rare diseases and will pay between 74-77 dollars per share, or 19.7 to 20.5 billion dollars (15.0 to 15 6 billion euros).

Citi analysts consider that "insofar Sanofi may be the only buyer, and that shareholders are aware that Genzyme may fall into the lower half of the range of 50-60 dollars, unless an agreement is not passed the matter will be at 74-77 dollars. "

They add that the French lab could launch a hostile bid if Genzyme resists and present its offer directly to shareholders.

The shareholder Relational Investors, Carl Icahn, who hold respectively 3.8% and 4.9% from Genzyme, could be satisfied with an offer around $ 75 since they bought at 61 and 54 dollars, says Citi.

Sanofi, an agreement would be $ 75 4% accretive in 2011 and 13% in 2013, analysts have calculated the Citi.

At Raymond James, Eric Le Berrigaud doubt that "70 dollars is sufficient.Starting at $ 70, is ready to go up to $ 80, "he notes." And at 80 dollars it is not certain whether all the guarantees of success since c is roughly the level or was action before Genzyme's production problems.

The biotech has enjoyed last year a series of production problems on its sites in the U.S., which continue to weigh on its business.

"SANOFI PREFERRED FINANCIAL LOGIC"

A fourth analyst insists that Sanofi is expected to launch its bid for Genzyme even if it does not create value for the group's objective is to increase its earnings per share.

"For the operation to bring value, it should pay less than $ 70 per share, or about 64 dollars," he says."If Sanofi launches operation beyond, is that the group favors a financial logic in the short to medium term to close down its results and not the logic of value creation."

For him, "the title Genzyme could return to $ 80 after the settlement of industrial problems, but very transient because its treatment of Gaucher's disease could soon be rivaled.

Sources familiar with the case, it said last week that Sanofi intended to send a letter to Genzyme with the terms of its offer.This offer would be like "bear hug", that is to say friendly at first but may become hostile if necessary.

The Board of Directors of Sanofi has authorized a $ 18.7 billion dollars, said last week, sources familiar with the matter. But Sanofi has financial guidelines allowing it to raise its offer, that is to say, to bring more than $ 70 per share, said a source.

The experts, anyway, that Genzyme is a suspect "white knight" to deal with Sanofi.

A spokesman for the Financial Markets Authority said that the French system which requires an initiator to declare his intentions in certain conditions if the rumors do not apply when the target is foreign.In this case, the law of the country in which the target company is applying, "she added.

The action dealt Genzyme Monday up 0.5% to 69.93 dollars in early afternoon on Wall Street. In Paris, the title Sanofi closed at 45.4 euros (1.88%).

Philips has released better than expected results for the sixth consecutive quarter and raised its margin target, but not so far succeeded in convincing the market hoped for more.

Around 9:15 GMT, the Dutch electronics group fell by 2.91%, to 24.175 euros after plunging 4.3% in the first exchanges to form when the largest decline of the Amsterdam Stock Exchange.

Victor Bareno, an analyst at SNS Securities, said that the published results did not reflect "the significant increase that Philips had reported in previous quarters.

The group recorded a profit before interest, taxes, depreciation and amortization (EBITA) of 527 million euros in the second quarter, against 118 million euros last year and 486 million euros expected.

Its turnover stood at 6.2 billion euros and net profit to 262 million euros, higher than the 241 million euros expected.

Analysts had warned before the publication of Philips that investor expectations may be too large.

"The magnitude of the excess (of analysts' forecasts) compared to the previous five quarters is somewhat less strong," said Jan Hein de Vroe, an analyst at ING.

Eleven of 13 analysts surveyed by Thomson Reuters StarMine SmartEstimates lowered on average by 22.6% their earnings expectations over the past 30 days, while the stock has gained almost 7%.

The Dutch consumer electronics was confident of being able to exceed its margin target of 10% EBITA before exceptional items this year, while previously thought just to reach this goal.

The European leader in consumer electronics has reduced the cost during the crisis and the beginning of economic recovery, which helped to generate profits even in difficult times.

Philips has hoped to exceed its savings target on its structural costs in 2010 to 700 million euros.

France is open to the entry of Japanese group Mitsubishi in the capital of Areva, said Prime Minister Francois Fillon.

"I told the Prime Minister of Japan its wish, the desire to see (…) strengthen the association between Areva and Mitsubishi for the realization, inter alia, a new reactor, the reactor ATMEA and I indicated In particular, France was open to input from Mitsubishi capital of Areva, said François Fillon during a trip to Japan, according to a text sent to the press.

The French nuclear expert working on the implementation of a proposed capital increase of three billion euros, which should mark the entry in its capital of international shareholders.The operation aims to secure funding for an investment program of nearly ten billion euros by 2012.

Sovereign wealth funds from Qatar and Kuwait, as well as Mitsubishi Heavy Industries, are anticipated to participate in this fundraising.

Airbus and Boeing are competing on public aid for the next generation of commercial aircraft in Europe after the decision by the World Trade Organization (WTO) over European subsidies to Airbus.

The two aircraft manufacturers have each claimed victory by highlighting their points favorably in the review of 1,000 pages issued Wednesday by the WTO, which ordered the European countries to remove certain subsidies provided to Airbus for its A380 superjumbo .

The organization also criticized other government aid, a lower amount, in favor of other models produced by Airbus, but rejected several points raised by the U.S. side.

The United States believes that the opinion of the WTO shows that the states of the European Union (EU) should not offer more loans to development for the future Airbus A350, which are central to the initial conflict .

Boeing also believes that his competitor must repay about four billion dollars (3.2 billion euros) in loans for the A380 or restructure them into commercial loans.

Airbus rejects these two points.The European aircraft manufacturer said that the WTO panel that made the report did not indicate the amount of subsidies to readjust, or accused the European Group for hiding the EU funding system as a whole, only certain details.

AIRBUS: "BOEING TAKES HIS DESIRES FOR REALITY"

"Boeing is its wishful thinking (…), the A350 is not affected by the outcome of the WTO.Together with the four states (France, Germany, Spain and the United Kingdom), we move at full speed, "said Rainer Ohler, communications director of Airbus.

Boeing believes his side a legal principle has been established.

"The continuation of projects to provide four to five billion dollars of public money to Airbus for the A350 to different conditions from those of the market is not only unacceptable but prohibited by the WTO ruling," said a Spokesman for the U.S. group.

"It is really time that Airbus soars with his own wings.It is a company ripe, the world's largest manufacturer of commercial aircraft with cash of nearly nine billion euros, "he added

"He is perfectly capable of using its own cash and to use commercial loans to finance development of its aircraft."

In its report, the "special" WTO said Wednesday that Airbus could launch a series of civilian aircraft thanks to subsidies from the EU and member states as France, the Germany, Spain and the United Kingdom.

Without this aid, Airbus has been a very different company and much less powerful, the report said.

The United States believes that loans to Airbus were with special rules and illegally export related, which belies the EU.

The issue of reimbursement of past public assistance is a sore point – the question is whether the WTO decisions are truly authoritative.

No funding has never been repaid, underscore lawyers.In principle, business decisions are not retroactive.

Nevertheless, the EU should use the WTO ruling within 30 days.

"We're pretty optimistic that an appeal from the EU has a good chance to succeed and resolve the many issues that we do not understand in the current report," said Rainer Ohler.

EADS, Airbus's parent company, closed in fall of 2.87%, to 16.385 euros, while around 16:00 GMT, Boeing yielded 1.4%, to 61.87 dollars.

Noting a marked turnaround that after months of sluggish demand, Lufthansa is optimistic about his chances to reach its profit target by 2010.

"Despite the first negative quarter and the closure of airspace early April, the developments in recent months has reinforced expectations of a higher operating profit in 2010 than last year," reads a statement released Monday by the airline before a meeting with investors.

In May, Lufthansa had already confirmed its 2010 target of a higher operating profit to 130 million euros generated in 2009.

The company also revised up slightly its forecast for the fuel bill this year, seeing now to 5.3 billion euros against 5.2 billion previously.

About 10:40 GMT, Lufthansa advanced 1.10% to 11.91 euro, making a little more than the index values involving the airline and travel industries (0.57%).