News – Business & Economi

Hewlett-Packard on Monday launched an offer of 1.6 billion dollars (1.2 billion euros) to acquire the data storage company 3PAR, competing with the offer of its rival Dell issued last week and potentially opening the way for other candidates for redemption.

HP offers a 24 dollars per share, an amount 33% higher than that proposed by Dell at $ 18 per share in cash, or $ 1.15 billion in total.

The proposed transaction represented by Dell when it announces a 87% premium over the closing price of 3PAR.

HP recently rocked by the resignation of its CEO Mark Hurd in early August, said that the board had approved the transaction.The closure of the transaction is expected before the end of the year, the company said.

STRATEGIC ACQUISITION

This acquisition would allow the IT group to extend its range of storage products for the 'cloud' (computer via the Internet) and support its service activities, like other industry heavyweights like IBM, they which tend to generate higher gross margins than sales of computers.

"3PAR enables us to expand our business in the storage and diversify our products," said Dave Donatelli, head of the business networks, servers and storage group, during a conference call.

Around 16:30 GMT, 3PAR jumped from 42.68% while the share of HP yielded 1.93%.

The boards of Dell and 3PAR had approved the terms of the agreement.

"We have proposed a superior offer, we are confident in our case and our proposal."

Due to the premium offered by Dell, industry analysts were surprised by the offer of HP, even if they had raised the possibility of a competing offer.

Shannon Cross, analyst at Cross Research, an additional supply could still be issued, which could start the beginning of a strong competition for this acquisition is rare in the technology sector.

"I do not think they (HP) undertake an acquisition only to weaken Dell is a strategic asset," she says.

3PAR and Dell were not immediately available for comment on the announcement of HP.

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%.

Axa announced Wednesday better than expected financial results for the first half performance in line with its objective to give priority to the recovery in margins rather than the development of its turnover.

Net income for the second European group of insurance by market capitalization stood at 944 million euros, a figure well above the 623 million approached by the consensus of analysts conducted by the editor of Reuters.

"In the first half of 2010, we focused on optimizing our margins on all our business lines," said a statement from the Group CEO Henri De Castries.

If the result is displayed down 28% over the same period last year, this drop is due to the supply of 1.478 billion euros spent by the group following the sale of some of its assets in the United Kingdom.

Without this extraordinary loss, net income would increase by 81%.

The decline in operating income of 3% to 2.082 billion euros, a performance superior to 1.884 billion as planned by Reuters, while turnover has increased it from 1% to 49.925 billion euros.

The band's performance "We will strengthen our ability to rebound when the economy will become clearer," said Henri de Castries.

Axa has not commented on the offer of 11.5 billion dollars from the National Australia Bank on its subsidiary AXA Asia Pacific.

The subsidiary has announced a profit of 219.2 million Australian dollars for the first six months of the year, a figure in line with market expectations.

The offer, which clashed with the Australian authorities to the competition runs until August 31.

The title Axa lost 10.9% since the beginning of the year, while the European index DJStoxx insurance is up 3.16%.

Merck reported a quarterly results better than expected thanks to strong demand for its treatment fighting against diabetes, arthritis or AIDS.

Excluding items, profit U.S. lab amounts to 86 cents per share while analysts polled by Thomson Reuters I / B / E / S had forecast 83 cents.

In total, net income fell to 752 million or 24 cents per share.In the second quarter of 2009, it was 1.56 billion or 74 cents a share.

Merck has taken control of his compatriot Schering-Plough in November for $ 41 billion.

For the year, Merck now expects EPS of 3.29 to 3.39 dollars per share, excluding special items, a slight adjustment from its previous forecast of 3.27 to 3.41 dollars.

In pre-market, Merck was down 2.2% to 34.29 dollars.

LVMH Tuesday reported a strong rebound in sales and profitability in the first half, driven by the performance of Louis Vuitton and the resumption of activities that had been during the crisis, heavily penalized by destocking.

After Hermes and Burberry, the giant figures confirm global luxury goods sector recovery in the first quarter after suffering in 2009 the largest decline in its history with sales down 8%, according to estimates from Bain & Co.

LVMH saw sales reach 9.09 billion euros, a figure slightly above the consensus reached by the editor of Reuters (8.87 billion euros), growing by 16% as reported.

In comparable data, the dynamics of organic growth was confirmed, the sales growth standing at 14% in the first half, after 13% in the first three months of the year.

Full advantage of the good momentum in sales and cost reduction programs implemented in 2009, during the crisis, current operating income jumped 33% to 1.816 billion euros (1.7 billion Reuters ), advancing 2.5 points the group's operating margin to 19.9% (against 17.5% a year earlier).

Unsurprisingly, these are activities that had suffered most from the crisis and overstocks – namely wines and spirits (Moet & Chandon, Dom Perignon or Ruinart) jewelry and watches (Tag Heuer, Zenith, Chaumet and Fred ) – which recorded the highest increases in sales (+18% and +24% respectively on a comparable basis).

In fashion, leather goods, the division's most profitable group with Louis Vuitton, the main profit center of LVMH sales up 14%.

Turnover increased 10% in perfumes and cosmetics (Dior, Givenchy and Guerlain) and 13% in the selective distribution (perfumery chain Sephora, the department store Le Bon Marche, or network based DFS sales in duty by passengers).

The stock closed at 92.26 euros on the Paris Stock Exchange Tuesday, down 2.91% to an increase of 17.7% since the beginning of the year, outperforming the European diversified consumer goods advancing 13.7% over the period.

The value of trades on valuation multiples of about 18 times its estimated profits for 2011, against 16 times the industry average for non-Hermes.

European banking stocks were up, supported by the results of resistance tests conducted by the European authorities to restore market confidence.

Investors, who had initially criticized the methodology of stress tests conducted by the Committee of European Banking Supervisors (CEBS), believe that exercise helps alleviate fears about the solvency of banks.

Having suffered in mid-morning on concerns about exposure of Deutsche Bank in sovereign debt, the sector index Stoxx 600 European banks is again on the rise.

Around 12:50, the index has risen by 0.41%.

The Societe Generale and ING shares rose 2.97% respectively at 39.12 euros and 3.08% to 7.1280 euros.

The Santander, the first bank capitalization in the euro area remained stable at 10.11 euros after opening up to the Madrid Stock Exchange.

"The stress tests show that the French banks and European banks in general, are more truly threatened by a solvency risk," notes Simon Willis, NCB Stockbrokers analyst financial in a research note.

"It remains for banks to find sufficient levels of profitability, long-term effort that requires strategic reviews of activity and improvements in their organization," he says.

Analysts at Credit Suisse in turn emphasize that the publication of detailed exposure to sovereign debt will enable investors to better understand the needs to recapitalize banks and credit risks in the event of default on the debt of a State.

Of the 91 banks in the European Union subject to the tests, only seven property – five Spanish, one German and one Greek – have failed and could therefore be forced to raise 3.5 billion euros of equity.

Others were successful only just like German or Italian Deutsche Postbank Monte dei Paschi di Siena.

DEUTSCHE BANK ASSENTED

French banks BNP Paribas, Societe Generale, Credit Agricole and BPCE have all passed the test of successful resistance, which allows securities to outperform their benchmark.

BNP Paribas gained 0.86% to 50.22 euros, Crédit Agricole 0.94% to 9.44 euros.

The Franco-Belgian Dexia, which has also passed the tests, scores 2.6% to 3.39 euros.

In Germany, Deutsche Bank, which also passed the tests, is punished by investors for failing detailed its exposure to sovereign debt.The title and yielded 1.24% to 49.13 euros.

The Committee of European Banking Supervisors will also ask the German banks to explain why they did not give details Friday of their holdings of sovereign debt.

In conducting these tests, CEBS and the European Union have sought to ensure that large EU banks had sufficient capital to cope with a deteriorating economy would be worse than expected and new shocks.

Learning from the Greek debt crisis, the tests also incorporated discounts on the value of certain bonds held by banks.

Syngenta has lowered its targets on Thursday and now anticipates a decline in earnings this year due to a late start planting, the result of a severe winter, and the burden of taxation.

Around 8:15 GMT, the action accused the coup losing 5.21% to 229.40 Swiss francs, while the index grouping the European chemical values yielded 0.76%.

The planting season started late in the northern hemisphere, but demand has accelerated in the second quarter, especially in emerging markets, told Reuters CEO Mike Mack.

As a result, the Swiss agribusiness group, world leader in its field, now anticipates a strong second half, with good signs for the upcoming planting season in the Southern Hemisphere he added.

"We anticipate an operating profit of about that of last year but, instead, a decrease in net profit," he said.

A continuing evolution in Latin America and Asia should make it possible to Syngenta, which also produces genetically modified seeds, to offset a 13% drop in operating profit in the first half to finish the year with operating profit unchanged said Mike Mack.

Finance costs and tax rates should weigh heavier on the net profits, also said the CEO.

Net income declined 11% to 1.25 billion dollars in the first half, while the Reuters poll gave it to 1.38 billion.

Revenues increased 1% to 6.74 billion dollars, is there a little higher than the consensus (6.69 billion).

THE EMERGING TO THE DEVELOPED

Emerging markets such as Latin America and Asia-Pacific are increasingly important for the group."That was the year Syngenta could see its sales in emerging markets than those in developed markets," added Mike Mack.

Shares of agribusiness groups have declined this year due to stiff competition from cheaper Asian products and uncertainty about the regulations of GMOs (genetically modified organisms).

The slide has picked up speed after that Monsanto has sharply reduced its full-year in May and reported a 45% drop in quarterly net income in June.

German Bayer, which has a subsidiary agrochemicals, will release its second quarter results on July 28 and his compatriot BASF, also present on this segment, July 29.

The European Commission released this month a proposal under which the Member States of the European Union could soon have the ability to prohibit the cultivation of GM crops on their land without justification.

The action Syngenta trades at a PER 2011 around 12.5, below that of the U.S. Monsanto but over other European companies in the sector.

She lost about a fifth of its value since the peak reached in March this year.

Orpea announced Wednesday an increase of 16.3% of its turnover in the first half and confirmed its full-year 2012.

The manager of nursing homes and clinics completed a first half sales of 470 million euros, representing organic growth of 9.3%.

The group has enjoyed a growth of 17.2% in France, which represents the bulk of its sales.

"Orpea confirms with great serenity, its sales targets for the current year and for 2011 and 2012, respectively 960 million, 1.100 million and 1.225 million euros," says in a statement.

In the second quarter alone, sales rose 16.5%, giving an organic growth of 9.1%.

For the second half, the group, which had in March 28.073 beds, expects the opening of many schools.

The shares closed Tuesday at 31.2150 euros, giving a market capitalization of about $ 1.2 billion.

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.