Reuters: Hot Stocks: Goodyear shares in overdrive, bringing in bullish bettors

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Goodyear shares in overdrive, bringing in bullish bettors May 31st 2013, 18:59 Fri May 31, 2013 2:59pm EDT * Goodyear volume is heavily skewed to calls this week * Call open interest exceeds puts for first time since mid-2012 * Goodyear declines to comment on options activity By Doris Frankel May 31 (Reuters) - A surge in Goodyear Tire & Rubber Co shares has not stopped traders from betting on more gains as they have piled into bullish call options in recent days. The tire company's stock hit a 22-month high on Thursday on heavy share volume and as the options market has seen a notable shift in favor of bullish call activity. The action does not appear to be tied to any specific news on the company. "Many times after a strong run like Goodyear has experienced this week, you may see some protective put-buying to lock in gains," said Ameritrade chief strategist J.J. Kinahan. "The lack of put buying, however, would suggest that speculators are looking for higher highs." Over the past 10 trading days beginning May 16, investors have bought 20.81 Goodyear calls for every put option bought as a new position on three U.S. options exchanges, according to Schaeffer's Investment Research. That ratio is higher than 89 percent of the readings over the past year, said Ryan Detrick, senior technical analyst at options research firm Schaeffer's Investment Research. Shares of the tire maker have gained 24 percent in May and hit $16.06 on Thursday, a level not seen since Aug. 2, 2011. The stock eased off recent gains on Friday afternoon, losing 2.97 percent to $15.35. "The U.S. auto sector has been one of the strongest and Goodyear could be riding on its coattails," Detrick said. Notably, shares of automakers General Motors and Ford Motor Co both hit 52-week highs this week. Call open interest on Goodyear now exceeds put open positions for the first time since mid-2012 with 109,000 calls versus 106,000 puts outstanding, according to Trade Alert data, a sign of bullishness. Traders on Wednesday exchanged 18,000 calls and 1,641 puts on Goodyear, or 2.8 times the recent daily average. Turnover on Thursday was nearly four times recent levels, with 22,000 calls and 4,221 puts traded, according to options analytics firm Trade Alert. Goodyear declined to comment on the heightened call activity. But one catalyst for the movement in calls may have been a presentation by chief financial officer Darren Wells at a KeyBanc Capital Markets conference on May 29 in Boston, where he discussed the company's financials. BETTING ON OCTOBER The biggest chunk of call buying on Wednesday and Thursday were in calls giving investors the right to buy Goodyear shares at $18 apiece by October expiration. The tire maker's shares have not been higher than $18 since July 2011. On Wednesday, when shares were trading at $15.11, a buyer paid a premium of 45 cents per contract for 8,000 October $18 strike calls, an opening position, said Trade Alert president Henry Schwartz. Buyers on Thursday came for more of those calls, paying 65 and 70 cents apiece for about 4,000 more contracts. "It looks like somebody thinks the stock is going up between now and October expiration," Schwartz said. "It does not strike me as a hedge against a short position in the stock." Schwartz said long call holders have been rolling their profits into longer-dated out-of-the-money call positions. As of Friday morning, the October $18 strike had the second-largest open option position among calls with 12,000 contracts. The June $15 call strikes have the largest position with 14,000 open contracts, Schwartz said. Implied volatility for the next 30 days, which measures the perceived risk of future stock movement, has gone up as well. The stock has risen 20 percent since May 14 and its 30-day implied option volatility has advanced to 39 percent, a 25 percent gain in the same period, data from options analytics firm Livevol show. Normally, implied volatility decreases as a stock price increases, but this change shows expectations rising for larger swings in the stock in the near-term, said Ophir Gottlieb, managing director of Livevol. In addition to the move in the stock and the heavy call option activity, the price of company's credit-default swaps, a measure of what investors pay to protect against a company's debt from defaulting, have declined in the last month. As of April 22, it cost $526,200 to protect $10 million in bonds against default over a five-year period; that cost has recently declined to $446,000, according to Markit. It suggests greater comfort among corporate-bond investors in Goodyear's credit. (Reporting by Doris Frankel; Editing by David Gregorio) Link this Share this Digg this Email Reprints

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Reuters: Hot Stocks: Britain's FTSE falls as stimulus doubts slow down rally

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Britain's FTSE falls as stimulus doubts slow down rally May 31st 2013, 12:17 Fri May 31, 2013 8:17am EDT * FTSE down 0.8 pct to 6,601.12 pts * Index down for 2nd week as 12-month rally slows * Any bad U.S. data seen as good news By Francesco Canepa LONDON, May 31 (Reuters) - Britain's top share index fell on Friday and was heading for its second consecutive weekly loss as investors took profits on a year-long rally on concerns about a scaling back of U.S. monetary stimulus. The blue-chip FTSE 100 index was down 55.9 points, or 0.8 percent, at 6,601.12 points at 1205 GMT, falling into negative territory for the week. A rally started in June 2012 largely fuelled by global money printing has slowed down in the last couple of weeks on speculation the U.S. Federal Reserve may taper its asset-purchase programme. "A feature of trading over the last couple of weeks is that we've had a number of long-only equity clients who were either trimming their positions or taking the index 'short' against those positions as a hedge," Matt Basi, head of UK sales trading at CMC Markets, said. Basi added any sign of economic weakness in the U.S. would be welcomed by investors looking for a reason for the Fed to stick to its quantitative easing (QE) programme, which has helped UK equities rise 25 percent in the past year despite a shrinking European economy. U.S. personal income and PCE inflation data for April, due to be published at 1230 GMT and both expected to show a 0.1 percent monthly increase, will give the market an indication of how far the U.S. economy is to meeting the Fed's Federal Open Market Committee (FOMC) targets. "(Data in line with consensus) for the dovish FOMC majority should be more than enough reason to persist with the current $85 billion pace of monthly QE," Andy Ash, head of sales at Monument Securities, said in an email to clients. "The scheduled agenda is not short of important data, though whether it proves to be directionally significant is a rather different proposition, especially given that those who have taken profits or squared out positions will probably want to wait for next week's array of events." The European Central Bank is due to hold its monthly rate-setting meeting on Thursday, while U.S. non-farm payrolls data is due to be published on Friday. (Reporting By Francesco Canepa/editing by Chris Pizzey, London MPG Desk, +44 (0)207 542-4441) Link this Share this Digg this Email Reprints

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Reuters: Hot Stocks: UK FTSE suffers 2nd weekly loss as stimulus rally fades

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UK FTSE suffers 2nd weekly loss as stimulus rally fades May 31st 2013, 16:35 Fri May 31, 2013 12:35pm EDT * FTSE down 1.1 pct to 6,583.09 pts * Index down for 2nd week as 12-month rally slows * Concerns about U.S. stimulus trigger profit taking By Francesco Canepa LONDON, May 31 (Reuters) - Britain's top share index recorded its second consecutive weekly loss on Friday as investors cashed in on a year-long rally on speculation U.S. monetary stimulus may be scaled back. The FTSE 100 shed 73.9 points to 6,583.09 points on Friday, ending the day and the week down 1.1 percent. It was 4.3 percent off a 13-year high hit last week. A 25 percent rally started in June 2012 and largely fuelled by global money printing has slowed down in the last couple of weeks on speculation the U.S. Federal Reserve may taper its asset-purchase programme. "We've been taking profit and either holding cash, waiting to buy on the dips, or recycling into other parts of the portfolio," said Oliver Wallin, investment director at Octopus Investments, adding a 5 percent drop could provide a good entry point. Charts showed the FTSE was likely poised for further falls after reaching successively lower intra-day highs and lows this week, pointing to fading buying momentum. In addition the index's Bollinger bands, trading ranges calculated from its moving average, have been converging - a pattern that is typically followed by a sharp move. "We're getting on for a week of consecutive lower lows and the Bollinger bands are closing tighter, indicating a strong break is imminent," said Steve Ruffley, market strategist at spreadbetting provider InterTrader. "Would you be buying lows? I wouldn't." Flows into European equities from U.S.-based funds also ground almost to a halt over the past week, Lipper data shows. Yet data from spreadbetters IG and CMC showed their clients were evenly split between buyers and sellers of the FTSE, suggesting investors, facing low bond yields, were still prepared to add to their equity positions. "There's a lot of money on the sidelines and bouncebacks are happening quite quickly," said Octopus' Wallin, who believes the Fed is unlikely to scale back its programme soon. "We're still in a sweetspot and in an investment environment that is supportive for equity markets in the remainder of the year." (Editing by Catherine Evans) Link this Share this Digg this Email Reprints

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Reuters: Hot Stocks: UPDATE 1-Bumi confident on Bakrie split as seeks lost cash

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UPDATE 1-Bumi confident on Bakrie split as seeks lost cash May 31st 2013, 10:34 Fri May 31, 2013 6:34am EDT * Bumi says more than $200 mln lost at Berau * Might never be recovered-CEO * Writes down Berau value by $815 mln on falling prices (Adds CEO comments, Nat Rothschild comment, analyst comment, background) By Sarah Young LONDON, May 31 (Reuters) - Indonesia-focused coal miner Bumi Plc said on Friday it was pressing ahead with a split from its co-founding Bakrie family as it tied up a review of unit Berau, telling investors more than $200 million had been lost at the operations. Bumi's board hopes to turn the company around after a probe into financial irregularities and feuding between the Bakrie family and co-founder Nat Rothschild. They plan to split from the Bakries and unit PT Bumi, leaving Bumi focusing solely focused on 85 percent-owned Berau Posting a $52 million annual loss for 2012 in long-delayed earnings, Bumi said falling thermal coal prices meant it would write down the value of PT Berau by $815 million and of its investment in PT Bumi - the Jakarta-listed unit it plans to part with - by $1.39 billion. Bumi also said it had completed a review of irregularities in the accounts of Berau - the process which held back publication of 2012 results - which identified expenditure of $201 million which had no clear business purpose. It said it was in talks to recover the lost cash but chief executive Nick Von Schirnding conceded that it was possible that it would be permanently lost. He declined to say who the discussions were with. "We are appalled but not surprised by the extent of malfeasance that has been documented today by Bumi," Rothschild, who owns an 11 percent stake in the company, said in an emailed statement, adding that he planned to issue a more comprehensive response in due course. SPLIT STILL ON TRACK The plan to draw a line under what Von Schirnding called "a huge mess" by separating from Indonesia's influential Bakrie family, was, however, still on track. "I'm very confident that the separation will go ahead," he told reporters. He added that the Bakries, whom he met in Singapore earlier this week, had assured him that the "requisite funding will be there" and that he hoped the company would be able to put the deal to shareholders before the autumn. Under the terms of the split, the Bakries will pay Bumi $278 million in cash for an 18.9 percent stake in Bumi Resources , of which $50 million is already held in escrow to ease investor concerns over the debt-burdened Bakries' ability to fund the deal. "Operationally the business continues to perform ahead of our expectations, although rightly, the key value drivers in the near term will be the Bakrie/Bumi Resources separation and restoring the market's faith in corporate governance," said Liberum analysts in a note. Shares in the company have been savaged - they are down 80 percent since the listing - not only by the corporate governance issues but also by weak thermal coal prices. The company's Berau business produced 27 percent more coal in the first quarter of 2013 compared with the same period last year, although the average selling price was 19 percent lower on costs which it cut by 7 percent. "We are facing troubled coal markets still as we speak, though I believe we have reached close to the bottom of thermal coal pricing," Schirnding said. Bumi, whose shares have been suspended due to a two-month delay in the publishing of its earnings, said it would apply for its shares to resume trading only after it completes an overhaul of "external systems and controls" due to be finalised before the company's shareholder meeting on June 26. He added that the company's search for a new independent chairman was advanced and that he was hopeful of making an announcement in the next few weeks. (Additional reporting by Clara Ferreira-Marques; Editing by David Cowell) Link this Share this Digg this Email Reprints

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Reuters: Hot Stocks: UPDATE 2-India's Sun Pharma in talks to buy Sweden's Meda for $5-$6 bln-sources

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UPDATE 2-India's Sun Pharma in talks to buy Sweden's Meda for $5-$6 bln-sources May 31st 2013, 15:12 Fri May 31, 2013 11:12am EDT * Deal would boost Sun generics business in developed world * Meda's most promising asset Dymista allergy inhaler * Olsson family controls more than fifth of Swedish firm * Meda shares hit 5-1/2-year on news of talks (Adds detail on valuation, ownership, further analyst comment, context on recent deals) By Sumeet Chatterjee and Kaustubh Kulkarni MUMBAI, May 31 (Reuters) - India's Sun Pharmaceutical Industries Ltd is in talks to buy Sweden's Meda AB for between $5 billion and $6 billion to boost its generics business in developed markets, two sources with direct knowledge of the process said. Meda makes speciality products, over-the-counter drugs and branded generics - the same areas of focus as Sun. The Swedish company had sales of about 13 billion crowns ($2 billion) in 2012 and has a stock market value of roughly $4 billion. Mumbai-based Sun is India's most valuable drugmaker, with a market capitalisation of some $20 billion, and has made several acquisitions in recent years. But a deal for Meda would be the largest yet for a company which had cash of 40.6 billion rupees ($722 million) at the end of March. If it goes through, the transaction would be the latest in a string of multibillion-dollar deals involving generic and mid-sized drug companies. Such deals include the planned $5 billion purchase of Warner Chilcott Plc by Actavis Inc and Valeant Pharmaceuticals International Inc's $8.7 billion acquisition of Bausch & Lomb. "Sun Pharma is in an extremely sweet spot with a low amount of debt and strong organic business growth," said Jagannadham Thunuguntla, equity head at SMC Global Securities in New Delhi. "While this (deal) shows their aggression, they should play it a little carefully in terms of valuation," he said. "It can put the balance sheet under stress." Buying Meda would give Sun access to Dymista, an allergy medicine that received U.S. approval last year and is viewed by analysts as having good potential. The inhaler product is manufactured and supplied to Meda by Cipla Ltd, an Indian rival of Sun. TALKS WITH BANKS Other Meda drugs have not performed so strongly in recent times, however, and its core earnings or EBITDA fell 16 percent last year. Analysts forecast core earnings to be flat in 2013, making its enterprise value of around 10 times EBITDA relatively expensive, according to one banker. Sun is in talks with a clutch of banks to raise funds for a possible deal, the sources said, declining to be identified. They did not say how far along the discussions were, or how likely it was that a deal would be reached. But the recent pace of acquisitions in the sector may suggest Sun would not have much trouble securing funding. "There have been a lot of deals and money is cheap if they (Sun) need to borrow," said Lars Hevreng, an analyst at SEB Equity Research in Stockholm. Possible rival bidders could include Valeant, which considered acquiring Meda in 2011, according to a source familiar with the situation speaking at the time. But Valeant may have its hands full integrating eyecare group Bausch & Lomb. Clinching any deal is likely to hinge on the position of Sweden's Olsson family, which owns more than 22 percent of Meda as well as shipping, metal processing and property assets. A spokeswoman for Sun declined to comment. Meda was not immediately available for comment. Shares in Meda hit a 5-1/2-year high on the report, rising as much as 8 percent before pulling back to stand 3.4 percent higher by 1425 GMT. Sun shares closed down 2.8 percent in a broader market that was off 2.3 percent. Last year, Sun bought U.S.-based Dusa Pharmaceuticals Inc for about $230 million, as well as URL Pharma from Japan's Takeda Pharmaceutical Co for an undisclosed amount. It also sought to buy out minority shareholders in its U.S.-listed Israeli subsidiary Taro Pharmaceutical Industries for $571 million before withdrawing the proposal earlier this year. ($1 = 6.5624 Swedish crowns) ($1 = 56.2450 Indian rupees) (Additional reporting by Ben Hirschler and Sophie Sassard in London, with Helena Soderpalm in Stockholm; Editing by Patrick Graham and David Holmes) Link this Share this Digg this Email Reprints

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Reuters: Hot Stocks: UK's FTSE edges down yet on track for fresh monthly gain

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UK's FTSE edges down yet on track for fresh monthly gain May 31st 2013, 07:06 LONDON | Fri May 31, 2013 3:06am EDT LONDON May 31 (Reuters) - Britain's benchmark equity index edged lower at the start of trading on Friday, although it remained on track for its 12th consecutive month of gains which has seen the market hit near 13-year highs. The blue-chip FTSE 100 was down by 0.4 percent, or 24.83 points, at 6,632.16 points by 0705 GMT.

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Reuters: Hot Stocks: Australian shares slip, benchmark posts biggest monthly loss in a year

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Australian shares slip, benchmark posts biggest monthly loss in a year May 31st 2013, 06:25 Fri May 31, 2013 2:25am EDT (Updates to close) SYDNEY May 31 (Reuters) - Australian shares slipped 0.1 percent on Friday, as financials declined in a late-session sell-off that saw the benchmark fall 5.1 percent for the month, its biggest drop since May 2012. The local market has come under selling pressure recently on a combination of factors, including worries the U.S. Federal Reserve would start to taper its stimulus this year and slowing growth in China, Australia's major export market. While unexpectedly weak U.S. economic data overnight eased Fed stimulus jitters, the local market wasn't able to take full advantage of the slight shift in sentiment. The S&P/ASX 200 index slipped 4.1 points to finish at 4,926.6, according to latest data. Blue-chip banks finished weaker. Westpac Banking Corp dropped 1.5 percent after trading ex-dividend, and top lender the Commonwealth Bank of Australia lost 1.1 percent. Rural services and real estate business Elders Ltd dived 13 percent after reporting a first half net loss of A$303.2 million, compared with a net profit of A$47.1 million for the same period a year ago. New Zealand's benchmark NZX 50 index climbed 0.9 percent or 40.8 points to 4,511.4, in a near uninterrupted rally since June 2012. (Reporting by Thuy Ong; Editing by Shri Navaratnam) Link this Share this Digg this Email Reprints

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Reuters: Hot Stocks: Australia shares slip on banks, post biggest monthly loss in a year

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Australia shares slip on banks, post biggest monthly loss in a year May 31st 2013, 06:52 Fri May 31, 2013 2:52am EDT (Adds details, comments) SYDNEY May 31 (Reuters) - Australian shares reversed early gains to slip 0.1 percent on Friday, as financials declined in a late session sell-off that saw the benchmark fall 5.1 percent for the month, its biggest drop since May 2012. The S&P/ASX 200 index finished 4.1 points lower to 4,926.6. The benchmark fell 0.9 percent to a six-week low. The local market has come under selling pressure recently on a combination of factors, including the Fed stimulus worries and slowing growth in China, Australia's major export market. Flagship banks were mostly weaker. Westpac Banking Corp dropped 1.5 percent after trading ex-dividend. The Commonwealth Bank of Australia, the country's biggest lender, and National Australia Bank both lost 1.1 percent. "It was looking very top-heavy, very, very profitable in terms of international investors," said Evan Lucas, market strategist at IG, noting the banking sector is down some 8 percent for the month. "The fact that the Australian dollar has been sliding, repatriating funds back into the (foreign) currency was also hitting those profits, so it was a reason for them to hit the button to sell out, we've seen a real rebalancing of those top banks." The Australian dollar was set for its steepest monthly loss in more than a year on Friday, hit by global worries, and was trading at $0.9640 at 0450 GMT, after falling to a 19-month low earlier in the week. Elsewhere, flagship telecommunications provider Telstra Ltd took a further battering, falling 0.6 percent to six-week lows of A$4.74. Real estate and rural services operator Elders Ltd slumped 13 percent after reporting a first-half net loss of A$303.2 million, compared with a net profit of A$47.1 million for the same period a year ago. Leighton Holdings Ltd dived 4.9 percent after it confirmed it had a contract dispute at its Senakin and Satui mines in Indonesia. Bellwether miners buoyed the market for most of the session after London copper futures rose for a second session on Friday, on course to post their first monthly gain in four. BHP Billiton Ltd and Rio Tinto Ltd gained 1.2 percent and 2.3 percent respectively. "Resources are holding on the positive side this month, There is a rotation going as well (from banks), it's a healthy thing to see," said IG's Lucas. U.S. stocks rose on Thursday, rebounding from the previous session's losses as tepid economic data eased concerns the U.S. Federal Reserve would begin to gradually scale back its policy of stimulating growth. New Zealand's benchmark NZX 50 index climbed 0.9 percent or 40.8 points to finish at 4,511.4, in an almost uninterrupted rally since June 2012. (Reporting by Thuy Ong, additional reporting by Michael Sin; Editing by Eric Meijer) Link this Share this Digg this Email Reprints

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Reuters: Hot Stocks: UK's FTSE slips yet on track for fresh monthly gain

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UK's FTSE slips yet on track for fresh monthly gain May 31st 2013, 07:55 Fri May 31, 2013 3:55am EDT * FTSE 100 down 0.9 pct in early session trading * On track for 12th consecutive monthly gain * FTSE 100 up 2.6 pct so far in May * Traders use month-end to book profits on that rally By Sudip Kar-Gupta LONDON, May 31 (Reuters) - Britain's benchmark share index fell on Friday, as lingering uncertainty over future monetary policy led investors to book profits on a rally which saw the market hit near 13-year highs earlier this month. The blue-chip FTSE 100 index was down by 0.9 percent, or 58.33 points, at 6,598.66 points in early trading. The index remains on track to record its 12th consecutive month of gains, with the FTSE 100 up 2.6 percent in May. However, the FTSE 100 has been volatile this week due to worries the U.S. Federal Reserve may soon taper economic stimulus measures that have helped drive a global equity rally this year. Central Markets chief strategist Richard Perry said now may be a good time for investors to book profits on that rally, with the FTSE 100 up 12 percent since the start of 2013, although he added the longer-term trends remained positive. "With the increased volatility in equities, it would be wise to take caution. A correction in the equity markets are long overdue and taking profits at these sort of levels on some core investment holdings may not be a bad idea," said Perry. Darren Easton, director of trading at Logic Investments, said if the FTSE 100 fell below the 6,600 point level, it could then drop down to the 6,500 point mark. EGR Broking managing director Kyri Kangellaris added he felt it was still too risky to buy into the FTSE at current levels. "It's still not really low enough for me to entertain buying stocks and I would look to take profits," he said. (Editing by Chris Pizzey, London MPG Desk, +44 (0)207 542-4441) Link this Share this Digg this Email Reprints

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Reuters: Hot Stocks: UPDATE 3-Dish puts Sprint bid for Clearwire under pressure

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UPDATE 3-Dish puts Sprint bid for Clearwire under pressure May 31st 2013, 00:13 Thu May 30, 2013 8:13pm EDT * Clearwire postpones special stockholders meeting to June 13 * Crest tells Clearwire to open bidding * Dish/Clearwire bid could affect bidding war for Sprint * Clearwire shares rise to Dish offer price of $4.40 (Adds Clearwire statement with details on new shareholder meeting date, financing) By Sinead Carew and Liana B. Baker NEW YORK, May 30 (Reuters) - One of the biggest minority shareholders in Clearwire Corp, on Thursday urged the wireless company to recommend against Sprint Nextel Corp's buyout offer after Dish Network Corp made a counter bid. Crest Financial, which holds about 8 percent of Clearwire shares, said Clearwire should open itself to competitive bidding, and said that even though Dish's bid late Wednesday appeared superior it may still prove inadequate to shareholders. In a statement late Thursday, Clearwire said it would adjourn its Friday meeting in which shareholders were expected to vote on Sprint's $3.40 per share offer, after Dish's latest counter bid of $4.40 per share. It said the meeting will reconvene on Thursday, June 13, giving the special committee nearly two weeks to decide on Dish's latest proposal. Clearwire also said its special committee found Dish's latest proposal to be more "actionable" than Dish's previous one. The new offer further complicates a consolidation scenario in which Dish Chairman Charlie Ergen is also competing against Japan's SoftBank Corp to buy Sprint, the No. 3 U.S. mobile service provider. Sprint is the majority owner of Clearwire. Some analysts speculated as to whether the Clearwire bid indicates that Dish would be happy with an investment in the smaller company or a spectrum purchase from Clearwire. But Dish said it was not backing down from its bid for Sprint. "Our Clearwire offer in no way diminishes our interest or vision for a combined Dish/Sprint," a Dish spokesman said. Clearwire, which in April warned it could default on debt interest payments due June 1 if the Sprint deal did not go through, said on Thursday it plans to make those payments, totaling about $255 million, on its first-priority, second-priority and exchangeable notes. Under Sprint's December proposal to buy out Clearwire, the smaller company had the option to draw on $800 million in convertible debt in 10 monthly installments. But Clearwire said it has decided to forego the June $80 million draw under that arrangement, upon the recommendation of its special committee. On the same day that Dish made the bid for Clearwire, Ergen and other Dish executives involved in the Sprint bid were holding meetings at Sprint's Overland Park, Kansas, campus as part of the due diligence process for that offer, according to a source familiar with the matter. Whatever Dish's motivation for the Clearwire bid, analysts said it spells trouble for SoftBank founder Masayoshi Son and his efforts to gain approval for Softbank's $20.1 billion bid for Sprint at a shareholder vote on June 12. Softbank had approved Sprint's bid to buy Clearwire. BTIG telecom analyst Walter Piecyk said SoftBank should come up with a higher bid for Sprint soon, as Dish's Clearwire bid effectively reduces the value of Softbank's bid for Sprint. "If Masa doesn't figure out how to regain control of the Clearwire process he may have a much harder time convincing Sprint shareholders that his Sprint offer is superior to Ergen's," Piecyk said. SoftBank gained clearance to go ahead with its Sprint offer earlier this week from a key U.S. government committee but needs more regulatory approvals. Dish, which had tried to buy Clearwire in January, appeared to strengthen its case with Clearwire by excluding conditions from the new bid that had made it very difficult for Clearwire to accept the previous offer. Clearwire had said it could not act on the January offer from Dish for $3.30 per share because some of the bid conditions went against previous agreements that Clearwire had with Sprint. Since Dish removed some of the conditions in its new bid, another source said that Ergen appeared to have "made a serious offer that is actionable" and that the board and its special committee will have to review the proposal carefully. "This is a much improved offer from Dish, not just the dollar amount," said the source who asked not to be named. "He's got himself in the game now." A money manager at one big Clearwire shareholder sounded happy with the latest offer from Dish on Thursday even as the person declined to comment specifically on the price. Five months ago, when Dish made its first bid for Clearwire, "I don't think anybody on the special committee would have thought that we would be where we are today," the money manager said. "That's largely because of the resolve of Clearwire independent shareholders." Clearwire shares closed up 29 percent at $4.50 on Thursday, above Dish's latest offer of $4.40, after Ergen started advertising his tender offer to Clearwire shareholders. Any purchase of Clearwire would need approval from more than 50 percent of Clearwire's majority shareholders. Before the latest Dish offer, many shareholders had said they were unhappy with Sprint's bid for Clearwire - even after it recently raised the price per share to $3.40 from $2.97. Crest Financial has been leading a proxy battle against the deal. (Reporting by Sinead Carew; Additional reporting by Zeba Siddiqui; Editing by Jeffrey Benkoe, Leslie Adler and Richard Chang) Link this Share this Digg this Email Reprints

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Reuters: Hot Stocks: Australia shares seen higher on Wall St rebound, copper rise

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Australia shares seen higher on Wall St rebound, copper rise May 30th 2013, 23:15 SYDNEY | Thu May 30, 2013 7:15pm EDT SYDNEY May 31 (Reuters) - Australian shares are set to edge higher on Friday, buoyed by gains on Wall Street after weak U.S. economic data eased fears of a wind-down in stimulus policies, while firmer copper prices may support miners. * Local share price index futures rose 0.4 percent, a 30.3-point premium to the underlying S&P/ASX 200 index close. The benchmark fell 0.9 percent to a six-week low on Thursday, and is down 5 percent so far this month. * New Zealand's benchmark NZX 50 index rose 0.5 percent in early trade. * U.S. stocks rose on Thursday, rebounding from the previous session's losses, as tepid economic data eased concerns the U.S. Federal Reserve would begin to gradually scale back its policy of stimulating growth. * Copper rose almost 1 percent on Thursday as investors bet on improved imports by the biggest consumer China and as data from top producer Chile showed April output fell from a year earlier due to strikes and production problems. * Gold rose to a two-week high, buoyed by a fall in the dollar on improved prospects the Federal Reserve will keep its monetary stimulus in place. * Australia's Sundance Resources will conclude discussions with potential partners on its $4.7 billion Africa iron ore project by June and announce a chosen partner three months later, the firm's chief operations officer told Reuters. * Australia's private sector credit for April will be released at 0130 GMT on Friday. ----------------------MARKET SNAPSHOT @ 2258 GMT ------------ INSTRUMENT LAST PCT CHG NET CHG S&P 500 1654.41 0.37% 6.050 USD/JPY 101.02 0.3% 0.300 10-YR US TSY YLD 2.119 -- 0.000 SPOT GOLD 1414.64 0.10% 1.390 US CRUDE 93.54 -0.07% -0.070 DOW JONES 15324.53 0.14% 21.73 ASIA ADRS 139.28 0.56% 0.78 ------------------------------------------------------------- * Wall St ends up on optimism Fed stimulus to remain * Crude oil mixed, swayed by views on economy and Fed * Gold hits two-week high as data quells Fed taper talk * Copper up on China demand prospects, tighter supply For a digest of the day's business stories in Australian newspapers, double click on (Reporting by Thuy Ong; Editing by Richard Pullin) Link this Share this Digg this Email Reprints

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Reuters: Hot Stocks: Australia shares rise on Wall St, miners firmer

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Australia shares rise on Wall St, miners firmer May 31st 2013, 01:42 Thu May 30, 2013 9:42pm EDT (Adds details, comments, stocks on the move) SYDNEY May 31 (Reuters) - Australian shares advanced 0.4 percent on Friday away from six-week lows, after U.S. economic data eased worries the Federal Reserve would start to taper its monetary stimulus this year, while firmer copper prices underpinned miners. BHP Billiton Ltd and Rio Tinto Ltd jumped 1.7 percent and 3.3 percent respectively on a 1 percent rise in copper prices. "We're seeing good rallies in iron ore stocks despite headlines pointing out potential difficulties in the sector," said Michael McCarthy, chief market strategist at CMC Markets. The S&P/ASX 200 index added 18.8 points to 4,949.5 by 0125 GMT. The benchmark fell 0.9 percent to a six-week low on Thursday, and is down 5 percent for May. The local market has come under selling pressure recently on a combination of factors, including the Fed stimulus worries and slowing growth in China, Australia's major export market. Banks were mixed. The Commonwealth Bank of Australia edged 0.1 percent higher while Australia's fourth largest bank, Australia and New Zealand Banking Group rose 0.4 percent but Westpac Banking Corp fell 0.8 percent after going ex-dividend. Defensives were weaker. Telstra Ltd plumbed 1.1 percent to six week lows of A$4.71. "There is no doubt the Telstra yield story is unwinding," Evan Lucas, market strategist at IG, said in a note. "Telstra has dropped 38 cents since May 22 - that's 7.4 percent." Food retailer Woolworths lost 0.9 percent while QBE Insurance Ltd slipped 0.4 percent. Blood products maker CSL Ltd lost 0.8 percent. "We saw confirmation in the US that the private sector is expanding at an accelerating pace, which is contributing to a better global growth outlook and global miners," CMC's McCarthy said. U.S. stocks rose on Thursday, rebounding from the previous session's losses, as tepid economic data eased concerns the U.S. Federal Reserve would begin to gradually scale back its policy of stimulating growth. New Zealand's benchmark NZX 50 index climbed 0.9 percent or 38.6 points to 4,509, in an almost uninterrupted rally since June 2012. STOCKS ON THE MOVE * Sundance Resources Ltd rallied 4.7 percent to A$0.09 after saying it will conclude discussions with potential partners on its $4.7 billion Africa iron ore project by June and announce a chosen partner three months later, the firm's chief operations officer told Reuters. (0125 GMT) * Western Areas Ltd soared 4.8 percent to A$3.06 after upgrading its full year guidance. (0126 GMT) * Guildford Coal Ltd slumped 10.5 percent to three week lows of A$0.17 after advising that production activities at their South-Gobi open cut coking coal mine in Mongolia has commenced with contractor Grand Power starting overburden removal. The coal explorer also announced the appointment of Michael Wotherspoon to Chief Financial Officer. (0127 GMT) * Elemental Minerals Ltd dived 13.8 percent to A$0.375. The company and Dingyi Group Investment Ltd have mutually agreed to extend an exclusivity period to 30 June 2013 to finalise oustanding due diligence matters. (0127 GMT) (Reporting by Thuy Ong, additional reporting by Michael Sin; Editing by Eric Meijer) Link this Share this Digg this Email Reprints

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Reuters: Hot Stocks: Australian shares up as Fed stimulus jitters ease, miners rise

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Australian shares up as Fed stimulus jitters ease, miners rise May 31st 2013, 00:26 Thu May 30, 2013 8:26pm EDT SYDNEY May 31 (Reuters) - Australian shares advanced 0.6 percent on Friday after U.S. economic data eased worries of the Federal Reserve would start to taper in stimulus this year, while firmer copper prices underpinned miners. The S&P/ASX 200 index climbed 29.1 points to 4,959.8 by 0013 GMT. The benchmark fell 0.9 percent to a six-week low on Thursday, and is down 5 percent so far in May. Financials were up, with top lender Commonwealth Bank of Australia climbing 1.2 percent and Australia and New Zealand Banking Group rising 0.5 percent. Flagship miners gained on the back of a 1 percent rise in copper prices. BHP Billiton Ltd and Rio Tinto Ltd jumped 1.4 percent and 2 percent respectively. The local bourse has been hit recently by the U.S. stimulus worries, turbulence in Japanese equities and slowing growth in China, Australia's major export market. U.S. stocks rose on Thursday, rebounding from the previous session's losses, as tepid economic data eased concerns the U.S. Federal Reserve would begin to gradually scale back its policy of stimulating growth. New Zealand's benchmark NZX 50 index rose 0.5 percent or 22.4 points to 4,492.9. (Reporting by Thuy Ong; Editing by Shri Navaratnam)

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Reuters: Hot Stocks: Britain's FTSE 100 up from 2-week lows, miners lead

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Britain's FTSE 100 up from 2-week lows, miners lead May 30th 2013, 15:57 Thu May 30, 2013 11:57am EDT * FTSE 100 up 0.45 pct, recovers from 2-week low * Long-term trendline offers support around 6,600 * Miners top gainers, helped by gold price By Toni Vorobyova LONDON, May 30 (Reuters) - Britain's top share index edged up from two-week lows on Thursday, with some investors seeing value in previously laggard miners, but low volumes and the small scale of the rise signalled caution. Precious metals miners Fresnillo, Randgold and Polymetal were among the top gainers, up 6.2 to 4.9 percent and taking heart from a rebound in gold. Bigger names followed, with some investors turning to what has been the worst performing sector this year as previous favourites such as healthcare and food look over-valued. Metals and mining is one of the cheapest sectors, trading at just 9.6 times expected next year earnings, compared with 11.2 times for the FTSE 100, according to Thomson Reuters StarMine. "The unloved miners are starting to take people's fancy again. People are looking for the next opportunity among those who haven't really taken part in this rally," said Jonathan Roy, broker at London Stone Securities. "But I don't think we are going to get any really big buying before the (U.S.) non-farm payrolls next week ... The market was due a bit of a correction." The rally in the miners added around 8 points to the FTSE 100, which closed up 29.82 points, or 0.45 percent, at 6,656.99 points after hitting a two-week low at the start of the session. The gain, though, was modest compared to the 3.6 percent fall from 13-year highs suffered in the previous four sessions on concerns the U.S. Federal Reserve could begin to unwind its stimulus policies in coming months, thus taking away a key support for global equities. The chances of such a move, though, were seen reduced on Thursday by weak jobs data. Volumes also suggested caution, with only 79 percent of the 90-day average daily volume traded. Technical charts offered some near-term support, with the FTSE halted for now at the trendline linking the highs from 1999 and 2007, around 6,600 points. "If this level gives way then a deeper setback is favoured to 6,534/6,555," said Ed Blake, technical analyst at Informa Global Markets. As long as stimulus from the Fed and other central banks stays in place, though, such a correction is likely to attract fresh buyers, potentially putting a floor under the market within 300 points of current levels. "I am not looking for anything calamitous like a 10 or a 20 percent correction," Peter Botham, chief investment officer at private bank Brown Shipley. "The market could trend downwards towards the 6,300 to 6,500 level during the course of the next few weeks - in other words what we think is fair value - before you put money back in again to hopefully get the next leg upwards." (Editing by Ruth Pitchford) Link this Share this Digg this Email Reprints

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Reuters: Hot Stocks: UPDATE 1-Clearwire to postpone vote on Sprint bid-sources

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UPDATE 1-Clearwire to postpone vote on Sprint bid-sources May 30th 2013, 14:40 Thu May 30, 2013 10:40am EDT (Adds comment on vote postponement, Ergen bid, share price update) By Sinead Carew NEW YORK May 30 (Reuters) - Clearwire Corp is expected to postpone its shareholder vote on Sprint Nextel Corp's offer to buy the company after Dish Network Corp made a higher counterbid, two sources familiar with the situation said on Thursday. Clearwire shareholders were due to vote on Friday on Sprint's offer to buy Clearwire for $3.40 a share, but will postpone the meeting after Dish Chairman Charlie Ergen made a bid of $4.40 late Wednesday, according to one source, who asked not to be named because of lack of authorization to comment. Clearwire had said it could not act on a January offer from Dish for $3.30 per share as some conditions that came with the bid went against previous agreements Clearwire had with Sprint, its majority owner. Since Dish removed some of the conditions in its new bid, the source said Ergen appeared to have "made a serious offer that is actionable" and that the board and its special committee will have to review the proposal carefully. "This is a much improved offer from Dish, not just the dollar amount," said the source. "He's got himself in the game now." Clearwire was expected to postpone Friday's vote, according to a second source. Clearwire shares rose 21.5 percent, or 75 cents, to $4.23 on Thursday morning after Ergen announced his offer and started advertising a tender offer to Clearwire shareholders. Any purchase of Clearwire would need approval from more than 50 percent of Clearwire's majority shareholders. Before the latest Dish offer, many shareholders had said they were unhappy with Sprint's bid for Clearwire - even after it increased the price to $3.40 per share from $2.97 per share. "This seriously complicates Sprint's bid for Clearwire," New Street analyst Jonathan Chaplin said in a research note, adding that the offer was good news for Clearwire's minority owners. But Chaplin also noted complications for Dish, One problem for Dish and other potential Clearwire investors is that Clearwire would need approval from Sprint in order to sell the company or accept a new investor. Dish is also competing against SoftBank Corp to buy Sprint itself. Dish has not said how the latest offer for Clearwire affects its bid for Sprint if at all SoftBank gained clearance to go ahead with its Sprint offer earlier this week from a key U.S. government committee but needs more approvals, including a Sprint shareholder vote. (Reporting by Sinead Carew; Editing by Jeffrey Benkoe) Link this Share this Digg this Email Reprints

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