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Better earnings report:
MARKET TALK: Lloyds 1Q Results Better-Than-Expected - Shore
Last update: 4/30/2013 3:40:55 AM
0740 GMT [Dow Jones] Lloyds Banking Group's (LLOY.LN) 1Q results are much better-than-expected, says Shore Capital. Notes underlying pretax profit of GBP1.5B versus Shore's estimate of GBP0.9B and core pretax profit of GBP1.9B against Shore's GBP1.6B. Says the jump in underlying pretax profit appears to reflect the inclusion of the GBP0.4B gain on the sale of St. James's Place (STJ.LN), lower-than-anticipated costs and a further sharp reduction in impairments. Shore adds that the shares are closing in on fair value. The brokerage remains positive on the stock. Shares are 4.3% higher at 56p. (jaya.matta@dowjones.com)
private stox sale deal @ 1.03 a piece.
Alcatel-Lucent misses by EUR0.04, beats on revs (ALU) 1.40 : Reports Q1 (Mar) loss of 0.15 per share, 0.04 worse than the Capital IQ Consensus Estimate of ( 0.11); revenues rose 0.6% year/year to 3.23 bln vs the 3.19 bln consensus.
Gixxer; timely post! May 7 2013 is record date it seems.
GL!
Enanta Pharmaceuticals announces new data from Phase 2b interferon-free combination studies with protease inhibitor ABT-450 for hepatitis C treatment to be presented at EASL; results ontinue to demonstrate high sustained viral response (SVR) rates against genotype 1 HCV, across patient types (ENTA) 20.43 : Co announced that new Phase 2b data related to ABT-450, Enanta's lead HCV protease inhibitor identified in its ongoing collaboration with AbbVie (ABBV), as well as new preclinical data on Enanta's proprietary cyclophilin inhibitor, EDP-546, will be presented at the International Liver Congress taking place in Amsterdam. Results from "Aviator," AbbVie's Phase 2b clinical trial of ABT-450 combined with two of AbbVie's proprietary investigational direct-acting antivirals (DAAs), for the treatment of hepatitis C virus (HCV) infection, continue to demonstrate high sustained viral response (SVR) rates against genotype 1 HCV, across patient types. SVR rates of 96% to 99% after 12 weeks of treatment were achieved in patients new to treatment (na?ve) and 93% in patients who had previously failed treatment with pegylated interferon and ribavirin (null responders). In addition, similarly high SVR rates over 90% observed after 24 weeks of treatment in the Phase 2b trial reinforce the adequacy of the 12-week treatment duration for the investigational interferon-free, triple DAA combination. The triple-DAA combination is currently being studied in Phase 3 clinical trials. 99% of treatment-na?ve patients achieved SVR12, 96% achieved SVR24 in this intent-to-treat analysis. 93% of prior null responders achieved SVR12 and SVR24. The single relapse with this regimen occurred at post-treatment week two.
Gleacher & Co Announces Exit of Fixed Income Business effective immediately; co is engaged in preliminary discussions with a third party regarding a potential business combination (shares halted) (GLCH) 0.69 :
Co announced that it will exit its MBS & Rates and Credit Products businesses effective immediately. Exiting these businesses, together with associated rightsizing of administrative and other support personnel, could impact up to approximately 160 employees. The plan does not include the Company's other business operations, principally investment banking.
The Company also announced that it is engaged in preliminary discussions with a third party regarding a potential business combination. There can be no assurance that these discussions will result in a transaction.
Finally, after having reopened the period during which stockholders of the Company could submit proposals for nominations to the Company's Board of Directors, the Company has received a submission from Clinton Relational Opportunity Master Fund, L.P., a stockholder of the Company, of a slate of individuals, including Thomas Hughes, the Company's Chief Executive Officer and a current director, that it intends to nominate for election to the Company's Board of Directors at the Annual Meeting of Stockholders scheduled for May 23, 2013. If elected, these nominees would together constitute the entire Board of Directors.
Gain Capital: FXCM (FXCM) proposes acquisition of Gain Capital for $5.35 per share (GCAP) 4.27 : FXCM (FXCM) announced it is proposing to merge with and acquire Gain Capital Holdings (GCAP). The proposed transaction would give Gain shareholders 0.3996 shares of FXCM Class A common stock for each share of Gain common stock. Based on FXCM's closing price of $13.39 on Monday, April 8, 2013, this results in an offer price of $5.35 per share of Gain common stock, which in aggregate would represent $210.4 mln in total value. This price represents a 25% premium to Gain's closing share price on April 8, 2013. FXCM is also prepared to offer up to $50 mln in cash consideration in lieu of FXCM shares.
Proposed Acquisition Highlights:
Would create an industry leader with potentially significant benefits of improved scale economics
Pro forma 2012 revenues of ~$569 mln, client assets of ~$1.6 bln and estimated post-synergy run-rate Adjusted EBITDA of between ~$163 and ~$183 mln
Potential significant operating synergies which can potentially drive between $50 and $70 mln in incremental run-rate EBITDA once integration is complete
Potential capital synergies could result in the release of between $80 and $100 mln in currently restricted cash
Projected to be accretive in 2014 after excluding one-time restructuring cost
Extended!
Columbia Labs extends agreement with Merck Serono (MKGAY.PK) for CRINONE ex-U.S. into 2020 (CBRX) 0.58 : Co has amended its license and supply agreement with Merck Serono, a division of Merck KGaA (MKGAY.PK), Darmstadt, Germany, for CRINONE (progesterone gel) through May 2020, representing an extension of five years beyond the current term, which was due to expire in May 2015. CRINONE is currently approved in over 60 countries, including a number of emerging markets such as China, where it was approved at the end of 2008. Merck Serono has marketing rights worldwide except the United States, where CRINONE is marketed by Actavis (ACT). Under the terms of the amended license and supply agreement, Columbia will remain the sole supplier of CRINONE to Merck Serono and will continue to sell CRINONE to Merck Serono on a country by country basis. From 2014 through 2020, the sourcing conditions for Merck Serono will include incremental volume discounts to incentivize Merck Serono to continue developing existing markets and investing in entry into new markets.
RIGL -29.6% (AstraZeneca reports top-line results from OSKIRA-1 Phase 3 study of Fostamatinib in Rheumatoid Arthritis, Rigel Pharma downgraded to Market Perform from Outperform at BMO Capital Mkts),
ACHC $28--Acadia Healthcare to acquire two acute inpatient psychiatric facilities in Puerto Rico and Florida for $91.8 mln in cash plus construction costs for the Tampa facility (ACHC) 28.57 : Co announced that it has signed a definitive purchase agreement with Ten Broeck Tampa and Capestrano Investment Company to purchase two acute inpatient psychiatric facilities. Acadia will acquire the San Juan Capestrano Hospital in San Juan, Puerto Rico, which is licensed for 108 beds and has a certificate of need to build 100 additional beds. Acadia will also acquire a 75-bed facility under construction in Tampa, Florida. The Tampa facility is scheduled for opening in the first quarter of 2014. Acadia expects to complete the purchase of these facilities in the second quarter of 2013, subject to normal closing conditions, for $91.8 million in cash plus construction costs for the Tampa facility.
EBS $13.50 expand front line CLL clinical trial of TRU-016 and rituximab based on strong patient enrollment and encouraging early clinical data (EBS) .
Emergent BioSolutions to expand front line CLL clinical trial of TRU-016 and rituximab based on strong patient enrollment and encouraging early clinical data (EBS) 13.41 : Co announced its decision to expand the protocol for its ongoing Phase 1b, single arm, open label study (Protocol 16009) evaluating the safety and efficacy of TRU-016 in combination with rituximab in previously untreated patients with chronic lymphocytic leukemia (CLL). The expanded protocol will include two new study cohorts to examine a lower dose of TRU-016 with rituximab in front line CLL and to evaluate the combination in relapsed CLL patients. This decision is based on strong patient enrollment along with encouraging early safety and efficacy data from this study. TRU-016 is the co's humanized anti-CD37 monospecific protein therapeutic, built on its ADAPTIRTM (Modular Protein Technology) platform, for the treatment of CLL. The co anticipates that this expanded clinical program will significantly enhance the value of TRU-016 and the company's active partnering program without impacting the company's total 2013 operating expenses.
TRU-016 is also currently being evaluated in a randomized, open label, active-controlled Phase 2 study in combination with bendamustine in patients with relapsed CLL. This study is on track to achieve its target enrollment of approximately 60 patients in April 2013.
MEIP selling stox @ $7.50 ( pre-split $1.25)
MEI Pharma Announces $15.2 Million Registered Offering Of Common Stock
PR NewswirePress Release: MEI Pharma, Inc. – 5 hours ago
RELATED QUOTES
Symbol Price Change
MEIP 7.5963 -0.69
SAN DIEGO, April 5, 2013 /PRNewswire/ -- MEI Pharma, Inc. (MEIP), an oncology company focused on the clinical development of novel therapies for cancer, announced today an underwritten registered offering of 2,030,000 shares of its common stock at a price per share of $7.50. The offering is expected to settle and close on April 10, 2013, subject to the satisfaction of customary closing conditions.
(Logo: http://photos.prnewswire.com/prnh/20120628/LA32362LOGO)
The Company plans to use the net proceeds of the offering, together with other available funds, to progress the clinical development program for its lead drug candidate, Pracinostat, and for other general corporate purposes.
Stifel and Cowen and Company acted as joint book-runners for the offering. Roth Capital Partners acted as co-manager.
The securities described above are being offered pursuant to a "shelf" registration statement previously filed and declared effective by the Securities and Exchange Commission (SEC). Copies of the prospectus supplement and accompanying base prospectus relating to the offering may be obtained from Stifel, Nicolaus & Company, Incorporated, Attention: Syndicate, One Montgomery Street, Suite 3700, San Francisco, California 94104, or by calling (415) 364-2500, or from Cowen and Company, LLC, c/o Broadridge Financial Services, 1155 Long Island Avenue, Edgewood, New York 11717, Attention: Prospectus Department, or by calling (631) 274-2806, or by faxing (631) 254-7140. An electronic copy of the prospectus supplement and accompanying base prospectus relating to the offering will also be available on the website of the SEC at www.sec.gov.
This release does not constitute an offer to sell, or the solicitation of an offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
About MEI Pharma
MEI Pharma, Inc. (MEIP) is a San Diego-based oncology company focused on the clinical development of novel therapies for cancer. The Company's lead drug candidate is Pracinostat, a potential best-in-class, oral histone deacetylase (HDAC) inhibitor being developed for advanced hematologic malignancies such as myelodysplastic syndrome (MDS) and acute myeloid leukemia (AML). Results from a pilot Phase II clinical trial of Pracinostat in combination with azacitidine in patients with advanced MDS were presented at the American Society of Hematology Annual Meeting in December 2012 showing an overall response rate (CR+CRi+PR) of 89% (eight out of nine). The Company plans to initiate a randomized, placebo-controlled Phase II trial of Pracinostat in combination with azacitidine in patients with MDS in June 2013. In addition, MEI Pharma is developing two drug candidates derived from its isoflavone-based technology platform, ME-143 and ME-344.
pre-split $1.25 now!
Stox sale @ $7.50
MEI Pharma Announces $15.2 Million Registered Offering Of Common Stock
PR NewswirePress Release: MEI Pharma, Inc. – 5 hours ago
RELATED QUOTES
Symbol Price Change
MEIP 7.5963 -0.69
SAN DIEGO, April 5, 2013 /PRNewswire/ -- MEI Pharma, Inc. (MEIP), an oncology company focused on the clinical development of novel therapies for cancer, announced today an underwritten registered offering of 2,030,000 shares of its common stock at a price per share of $7.50. The offering is expected to settle and close on April 10, 2013, subject to the satisfaction of customary closing conditions.
(Logo: http://photos.prnewswire.com/prnh/20120628/LA32362LOGO)
The Company plans to use the net proceeds of the offering, together with other available funds, to progress the clinical development program for its lead drug candidate, Pracinostat, and for other general corporate purposes.
Stifel and Cowen and Company acted as joint book-runners for the offering. Roth Capital Partners acted as co-manager.
The securities described above are being offered pursuant to a "shelf" registration statement previously filed and declared effective by the Securities and Exchange Commission (SEC). Copies of the prospectus supplement and accompanying base prospectus relating to the offering may be obtained from Stifel, Nicolaus & Company, Incorporated, Attention: Syndicate, One Montgomery Street, Suite 3700, San Francisco, California 94104, or by calling (415) 364-2500, or from Cowen and Company, LLC, c/o Broadridge Financial Services, 1155 Long Island Avenue, Edgewood, New York 11717, Attention: Prospectus Department, or by calling (631) 274-2806, or by faxing (631) 254-7140. An electronic copy of the prospectus supplement and accompanying base prospectus relating to the offering will also be available on the website of the SEC at www.sec.gov.
This release does not constitute an offer to sell, or the solicitation of an offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
About MEI Pharma
MEI Pharma, Inc. (MEIP) is a San Diego-based oncology company focused on the clinical development of novel therapies for cancer. The Company's lead drug candidate is Pracinostat, a potential best-in-class, oral histone deacetylase (HDAC) inhibitor being developed for advanced hematologic malignancies such as myelodysplastic syndrome (MDS) and acute myeloid leukemia (AML). Results from a pilot Phase II clinical trial of Pracinostat in combination with azacitidine in patients with advanced MDS were presented at the American Society of Hematology Annual Meeting in December 2012 showing an overall response rate (CR+CRi+PR) of 89% (eight out of nine). The Company plans to initiate a randomized, placebo-controlled Phase II trial of Pracinostat in combination with azacitidine in patients with MDS in June 2013. In addition, MEI Pharma is developing two drug candidates derived from its isoflavone-based technology platform, ME-143 and ME-344.
Cancer Genetics, Inc. Announces Pricing of Initial Public Offering of 600,000 Shares of Common Stock
Date : 04/04/2013 @ 6:26PM
Source : Business Wire
Cancer Genetics, Inc. Announces Pricing of Initial Public Offering of 600,000 Shares of Common Stock
Print
Alert
Cancer Genetics, Inc., a diagnostics company focused on developing genomic-based, oncology tests and services, today announced the pricing of its initial public offering of 600,000 shares of its common stock at a price to the public of $10.00 per share. The gross proceeds to Cancer Genetics from the initial public offering are expected to be $6,000,000 (assuming no exercise of the over-allotment option), before underwriting discounts and commissions and other offering expenses payable by Cancer Genetics. Cancer Genetics has granted the representative of the underwriters a 45-day option to purchase up to 90,000 additional shares of common stock from Cancer Genetics to cover over-allotments, if any. Shares of Cancer Genetics’ common stock are expected to be quoted on the OTCQB Marketplace, operated by OTC Markets Group, under the symbol “CGIX” beginning on April 5, 2013. Investors will be able to find Real Time Level II quotes for “CGIX” on www.otcmarkets.com.
The offering is expected to close on April 10, 2013, subject to customary closing conditions.
Aegis Capital Corp. is acting as sole book-running manager for the offering.
Feltl and Company, Inc. is acting as co-manager for the offering.
This offering is being made only by means of a prospectus. Copies of the prospectus relating to this offering may be obtained by contacting Aegis Capital Corp., Prospectus Department, 810 Seventh Avenue, 18th Floor, New York, NY 10019, telephone: 212-813-1010, e-mail: prospectus@aegiscap.com.
A registration statement relating to these securities was declared effective by the Securities and Exchange Commission on April 4, 2013. This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
About Cancer Genetics:
Cancer Genetics, Inc. is an early-stage diagnostics company focused on developing and commercializing proprietary genomic tests and services to improve and personalize the diagnosis, prognosis and response to treatment (theranosis) of cancer. The proprietary tests being developed by Cancer Genetics target cancers that are difficult to prognose and predict treatment outcomes by using currently available mainstream techniques. These cancers include hematological, urogenital and HPV-associated cancers. Cancer Genetics recently has begun to provide its proprietary tests and services along with a comprehensive range of non-proprietary oncology-focused tests and laboratory services that it has provided historically to oncologists and pathologists at hospitals, cancer centers and physician offices. Cancer Genetics is currently offering its tests and laboratory services in its 17,936 square foot laboratory located in Rutherford, New Jersey, which has been accredited under the Clinical Laboratory Improvement Amendments of 1988 to perform high complexity testing.
CGIX IPO @ $10
Cancer Genetics prices 600,000 share IPO at $10.00 per share, at low end of $10-12 expected range (CGIX) :
Up a bit to $2.80 with FDA trial aproval news:
nVivo Therapeutics Receives Approval from FDA for First Human Trial Using Biomaterials for Traumatic Spinal Cord Injury
Last update: 4/5/2013 6:00:02 AM
CAMBRIDGE, Mass., Apr 05, 2013 (BUSINESS WIRE) -- InVivo Therapeutics Holdings Corp. (NVIV), a developer of groundbreaking technologies for the treatment of spinal cord injuries (SCI) and other neurotrauma conditions, today announced that the U.S. Food and Drug Administration (FDA) has approved the Company's Investigational Device Exemption (IDE) to begin human studies to test its biopolymer scaffold product, a technology developed to treat patients with acute, traumatic SCI.
With this approval, InVivo intends to commence a first-in-man clinical study in the next few months that will test safety and performance of its biopolymer scaffold in five patients. The Company expects the study to occur over approximately 15 months. There are currently no treatment options approved by the FDA, or in clinical trials, to intervene directly in the spinal cord following SCI. The trial will be conducted at multiple U.S. hospitals, and work to gain Institutional Review Board (IRB) approval at Massachusetts General Hospital in Boston is already underway.
"It's heartbreaking for all of us for it to take even a minute longer than necessary to begin human studies, and we've all heard of, or experienced, treatments that have proven to be unsafe, but when conducting a first-in-man study, it is imperative to take the time to get it right, because any mistakes can lead to years of lost time for the scientists and patients that follow," said Frank Reynolds, InVivo Chief Executive Officer.
"I want to thank my team for their years of dedication and hard work, and the FDA for its diligence, careful consideration and engagement during the stringent review of our technology, a true platform that we believe is capable of being leveraged into new treatments for a wide range of acute and chronic neurological conditions. Many of these neurological problems have limited options for care, and for the patients and families of those with lower incidence conditions, often called 'orphan' conditions, every day life can feel like there is no way out. We expect a successful safety study to provide not only the first treatment for acute SCI, but also a safe platform for next generation treatment options for conditions such as ALS, MS and Parkinson's Disease. At InVivo we live by the mantra 'What a drug or cell can do...We can optimize,' and we believe that these treatments will include combination therapies that will be optimized with long-term release and localized delivery of agents or cells."
Continued Reynolds, "Everyone knows my obsession with safe FDA studies. Over the next month or so, we plan to finalize the details of our study, and we expect to have all data to the FDA by the end of 2014. We will be conducting an open label study, and so we look forward to keeping the public aware of its progress. As a historical first-in-man study, this trial marks the next phase in our corporate growth and begins our mission to maintain a collaborative relationship with the FDA. We've built a framework to optimize speed-to-market for our pipeline of technologies, and we'll be working to commercialize over fifteen products in the next five years while remaining focused on mitigating patient risk and maximizing patient safety and benefit."
The Company was also recently granted approval from the FDA on its Humanitarian Use Device (HUD) designation request. HUD designation is reserved for devices designed to treat rare diseases or conditions. InVivo has received this designation for the treatment of recent complete spinal cord injury (no motor or sensory function) that does not involve penetrating injury or complete severing of the spinal cord. The HUD designation and clinical trial data are required to support a Humanitarian Device Exemption (HDE) application to the FDA with the goal of commercializing the scaffold in the United States sooner than a Pre-Market (PMA) approval would allow.
About InVivo Therapeutics
InVivo Therapeutics Holdings Corp. is utilizing polymers as a platform technology to develop treatments to improve function in individuals paralyzed from traumatic spinal cord injuries. The company was founded in 2005 based on proprietary technology co-invented by Robert S. Langer, ScD, Professor at Massachusetts Institute of Technology, and Joseph P. Vacanti, M.D., who is affiliated with Massachusetts General Hospital. In 2011, the company earned the prestigious David F. Apple Award from the American Spinal Injury Association for its outstanding contribution to spinal cord injury medicine. The publicly traded company is headquartered in Cambridge, MA. For more details, visit .
SBsucks;
Thnx. keep up with good work!
GL
mlkrborn
Plausable prediction.
GLLs
Second round of short pricks' pounding underway!
GLLs
second round of short pricks' pounding underway!
GLLs
Rock bottom: losses and mergers along with Cyprus crisis $0.88
Eurobank 2012 Impairment Losses EUR1.65 Billion, Up 24.6%
Last update: 3/27/2013 11:15:03 AM
By Stelios Bouras
ATHENS--Three of Greece's largest lenders Wednesday reported combined losses of more than 4.5 billion euros for 2012, hurt by rising loan provisions and higher funding costs amidst the country's deep recession.
National Bank of Greece (NBG) said net group losses for the year reached EUR2.14 billion, versus a loss of EUR12.3 billion in the previous year when it wrote off the impact Greece's mammoth EUR200 billion debt restructuring. Eurobank (EUROB.AT) showed a net loss of EUR1.45 billion in 2012, down from a EUR5.5 billion loss in 2011. Alpha Bank (ALPHA.AT) was also in the red by EUR1.09 billion for 2012, in comparison with a EUR3.8 billion loss in the previous year.
NBG Chief Executive Officer Alexandros Tourkolias said the 2012 results reflect "the difficult economic conditions in Greece and the intense pressure under which the banking system suffers," adding that there were indications of improvement in the last few months of the year.
"Already in the fourth quarter of 2012 we saw the first signs of normalization of conditions in Greece, with the return of part of the deposits that were lost during the course of the two rounds of national elections, a slowdown in the growth of new loan delinquencies, and the bottoming out of income from core banking business," he said in a statement.
In a bid to become more efficient and attractive to potential investors, the sector has been consolidating at a fast pace. National Bank is teaming up with Eurobank, while Alpha Bank has acquired the Greek unit of French lenders Credit Agricole SA and Piraeus Bank SA is acquiring the local unit of Societe Generale SA and the healthy assets of state-owned farm lender ATEBank.
On Tuesday, Piraeus Bank agreed to buy the Greek branch network and operations of three Cypriot lenders for a total cash consideration of EUR524 million as part of a bailout agreement for the crisis-hit island.
As part of Greece's second EUR173 billion bailout package from international creditors, Athens has earmarked about EUR50 billion for a bank recapitalization plan.
Under the terms of the plan, Greece's bank-rescue mechanism, the Hellenic Financial Stability Fund, will underwrite coming rights issues and effectively take control of the four big banks, which combined account for three-quarters of the banking system's assets
Alpha Bank said it is confident about the outcome of the rights issue, expecting in 2013 lower funding costs, further operating efficiencies and a lower cost of credit that will have a positive impact on its profitability.
"With tangible shareholders' equity in excess of EUR2 billion, ahead of any recapitalisation, Alpha Bank will comfortably meet the private sector test and thus retain firmly its private sector character," said Alpha Bank CEO Demetrios Mantzounis.
Write to Stelios Bouras at stelios.bouras@dowjones.com; Philip Pangalos at philip.panagalos@dowjones.com
Today's News, March 28, 2013
7:39a
Moody's Says Irish Banks Are Very Well Capitalized, Doesn't Expect Irish Banks to Need More Capital (Benzinga)
CBKG.DE 1.14 euro-52 weeks low level
http://www.reuters.com/finance/stocks/overview?symbol=CBKG.DE
Commerzbank Sets Measures to Cut Government Stake, Lift Capital
7:48a ET March 13, 2013 (Dow Jones)
Commerzbank Sets Measures to Cut Government Stake, Lift Capital
By Ulrike Dauer
FRANKFURT--Commerzbank, Germany's second-largest listed bank, said it will take advantage of "attractive" market conditions to conduct a EUR2.5 billion capital increase, as it looks to bolster its balance sheet and take another bold step to reduce government involvement in the bank.
The capital increase will include subscription rights for current shareholders and be voted on at the annual meeting, moved up to April 19 from the original date of May 22.
Commerzbank said the move will allow it to fully repay the remaining EUR1.6 billion in non-voting shares, known as "silent participation," still held by the German government's SoFFin financial markets stabilization fund and the EUR750 million held by Allianz SE (ALV.XE).
After the completion of the capital increase, SoFFin's 25% shareholding in Commerzbank, which it held in addition to the non-voting shares, is expected to decrease to below 20%.
"For us, the repayment of the [non-voting] silent participations and the reduction in the Federal Republic's stake marks the beginning of the end of the Federal Republic's engagement in Commerzbank," the bank said.
Subsequently, the bank will also be able to resume dividend payments in the future, it said. The bank also announced plans for a consolidation, or reverse 1-for-10 stock split, that will reduce the outstanding shares to 583 million shares from 5.83 billion shares, with the price multiplied by 10.
During the financial crisis, the German government injected EUR18.2 billion in Commerzbank to keep the bank afloat in the wake of the ill-timed acquisition of Dresdner Bank.
Along with a 25%-plus-one-share stake, the government received so-called silent participations, essentially non-voting shares, totaling EUR16.4 billion. The bank repaid EUR14.3 billion of the silent participations in 2011, along with a one-time payment of EUR1.03 billion.
As a result of the transaction announced Wednesday, the fully phased-in Basel 3 Common Equity Tier 1 ratio--a key measure of a bank's financial health--will rise to 8.6% from 7.6% as of year-end 2012 on a pro forma basis as of that date. That figure will rise to 9% by the end of 2014, Commerzbank said.
-Write to Ulrike Dauer at ulrike.dauer@dowjones.com
(END) Dow Jones Newswires
March 13, 2013 07:48 ET (11:48 GMT)
Copyright (c) 2013 Dow Jones & Company, Inc.DN201303130051792013-03-13 11:48:00.00036C14J7F8GJC6UBFKVT7T7UFPVDJNF
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Recent news:
March 13, 2013
1:19p
UPDATE 3: Italy auction, data weigh on Europe stocks (MarketWatch)
11:15a
UPDATE 2: Costly Italian auction adds to Europe stock gloom (MarketWatch)
8:51a
Commerzbank: Likelihood For Dividend After 2013 Substantially Up After Transaction (Dow Jones)
8:49a
Commerzbank CEO Repeats Unlikely Bank To Pay Dividend For 2013 (Dow Jones)
8:47a
Commerzbank: German Govt Decided Wanted Silent Participation Back,Not More Not Less (Dow Jones)
8:44a
Commerzbank CEO: No Specific Demand By Regulator For Cap Hike (Dow Jones)
8:43a
Commerzbank CEO: EUR1.10 Minimum Subscription Price In Transaction (Dow Jones)
8:32a
Commerzbank CEO: Aim To Wind Dn Business In Value-Preserving Way (Dow Jones)
7:53a
Commerzbank: Non-Core Asset Run Down Making Further Good Progress (Dow Jones)
7:52a
Commerzbank: 1Q Revenues Had Solid Start In Jan, Feb (Dow Jones)
7:48a
Commerzbank Sets Measures to Cut Government Stake, Lift Capital (Dow Jones)
7:37a
Commerzbank: Repayment Of Allianz, Remainder SoFFin Non-Voting Shrs In Cash (Dow Jones)
7:34a
Commerzbank: EUR2.5B Size Of Rights Issue Includes Transaction Costs (Dow Jones)
7:33a
Commerzbank: Launch Of Discounted Rights Offering Expected After 1Q Results (Dow Jones)
7:31a
Commerzbank: Net Asset Value Per Share To Increase Tenfold In Transaction (Dow Jones)
7:29a
Commerzbank: Detailed Terms To Be Announced A Day Before Subscription Period (Dow Jones)
7:28a
Commerzbank: Faster Compliance With Basel 3 Allows Earlier Div Pay Resumption (Dow Jones)
7:27a
Commerzbank: Measures Improve Mid-Term Dividend Pay Ability (Dow Jones)
7:25a
Commerzbank: Transaction Allows Faster Compliance With Fully Phased In Basel 3 (Dow Jones)
7:23a
Commerzbank To Reach 9% Fully Phased In Basel 3 Common Tier 1 Ratio By End-'14 (Dow Jones)
6:37a
SoFFin: This Is the Beginning of Govt's Commerzbank Exit (Dow Jones)
6:30a
Commerzbank: Transaction Aims To Fully Repay SoFFin, Allianz Non-Voting Shrs (Dow Jones)
Grades: DB and suisse bank
Credit Suisse:
Commerzbank neutral (outperform) EUR1.25 (EUR2)
=========================================================
Deutsche Bank:
Commerzbank hold EUR1.20 (EUR1.50)
The indexes, along with the broader European markets, had opened in positive territory, but was sent lower in the afternoon. Jeroen Dijsselbloem, the chairman of the Eurogroup of euro-zone finance ministers, said according to Reuters that the rescue program for Cyprus reached early Monday morning served as a template for addressing future banking problems in the euro zone.
"If the bank can't do it, then we'll talk to shareholders and the bondholders, we'll ask them to contribute in recapitalizing the bank, and if necessary the uninsured deposit holders," he said, according to the report. See: Cyprus deal will dent euro, eventually--Citi's Englander
As part of the 10 billion euros ($13 billion) bailout deal, Cyprus agreed to restructure the two largest Cypriot banks, with depositors with more than EUR100,000, the cutoff for uninsured deposits, to face losses.
"There was a sigh of relief this morning following the Cyprus deal, but now there has been a lot of criticism leveled at this deal. It highlights many of the old flaws in the euro zone and it doesn't bode well for future resolutions," said Peter Dixon, strategist at Commerzbank in London.
"They had to tap into deposits, which is not a good thing," he added.
But even as investors were spooked by the prospect of bail-in solutions spreading to other ailing banking sectors, European equity markets still had the scope to move a little higher, Dixon said.
"If we got investors or corporations sitting on big piles of cash in the peripheral countries and they have seen what happened in Cyprus, the sensitive strategy would be to not hold cash and move them somewhere else like the equity markets," he said. "Other asset classes look awful and you don't get anything on fixed income."
The Cyprus Stock Exchange was closed for trading all of last week, but said it would reopen Tuesday. Monday is a public holiday in Cyprus. See: C
CRBZY $1.49
ZIOPHARM terminates development of palifosfamide in metastatic soft tissue sarcoma; restructuring to place exclusive strategic focus on synthetic biology programs (ZIOP) 5.13 : Co announced that its Phase 3 trial of palifosfamide (ZIO-201) for the treatment of metastatic soft tissue sarcoma in the first-line setting (PICASSO 3) did not meet its primary endpoint of progression-free survival (PFS). The study's independent data monitoring committee (IDMC) has recommended that patients be followed for overall survival (OS), the study's secondary endpoint, however the Co does not expect to continue follow up for OS. Palifosfamide was well tolerated, with a safety profile in combination with doxorubicin observed in the study comparable with other palifosfamide clinical trials in soft tissue sarcoma. Full data from PICASSO 3 will be submitted for publication in a scientific journal.
Ended $1.82
With this outcome, ZIOPHARM has made the decision to immediately place exclusive strategic focus on its synthetic biology programs, which are being developed in partnership with Intrexon Corporation. The lead therapeutic candidate in this program is Ad-RTS IL-12, a DNA therapeutic to enable controlled delivery of therapeutic interleukin-12 (IL-12), a protein important for an immune response to cancer. This is achieved by placing IL-12 under the control of Intrexon's proprietary biological "switch" (the RheoSwitch Therapeutic System, RTS) to turn on/off the therapeutic protein expression. Ad-RTS IL-12 is currently being tested in two Phase 2 studies, the first for the treatment of advanced melanoma, and the second in combination with palifosfamide for the treatment of non-resectable recurrent or metastatic breast cancer.
AMBO $0.94
Ambow Education announces withdrawal of non-binding going private proposal (AMBO) 0.95 : Co announced that its Board of Directors received a letter from The Baring Asia Private Equity Fund V, L.P. stating that Baring is withdrawing the non-binding going private proposal dated March 15, 2013 as a result of unexpected events, including the resignations of three independent directors and the Company's independent auditor and the suspension of trading of the Company's ADSs on the NYSE. In its letter, Baring also stated it remained willing to consider potential transactions with the Company, including an acquisition of all or part of the Company, once the current situation is resolved.
FKIR.L 0.162 euro. Both cyprus'issues and fundamentals of equity capital reduction are at work it seems.
BANK OF IRELAND has sought to reduce its share capital to create a bigger pool of cash from which to pay the Government dividends in February and later years on the State’s €1.8 billion preference share investment in the bank. It will enable the bank to repay the preference shares in full.
The only Irish lender to avoid State control, it brought a petition to the Commercial Court seeking to reduce its share capital by €3.92 billion to €1.97 billion. The reduction, approved by shareholders in June and by the Minister for Finance, will not affect the regulatory capital of the bank, Paul Sreenan SC said.
Bank of Ireland chief executive Richie Boucher said in an affidavit that the reserve will be treated as profits available for distribution and is intended to ensure the bank has sufficient reserves, after accounting for possible losses, to be able to pay dividends.
The bank sought the full €3.92 billion authorised under a measure approved by shareholders to ensure the bank had a buffer available to protect it from volatile markets.
The Government bailed out the bank in 2009 with a €3.5 billion investment by way of preference shares. The State converted almost €1.7 billion of this into equity shares in a rights issue to raise further capital in 2010. The bank was due to pay a coupon, or annual interest payment, on the shares to the State in February 2010 but instead paid in equity.
The State received a dividend of €214 million in February 2011 and €188 million last February. The next dividend is due on February 20th. Under the first State bailout of the bank, the lender must repay the €1.8 billion preference shares by March 31st, 2014 or else pay 125 per cent of this amount.
BANK OF IRELAND has sought to reduce its share capital to create a bigger pool of cash from which to pay the Government dividends in February and later years on the State’s €1.8 billion preference share investment in the bank. It will enable the bank to repay the preference shares in full.
The only Irish lender to avoid State control, it brought a petition to the Commercial Court seeking to reduce its share capital by €3.92 billion to €1.97 billion. The reduction, approved by shareholders in June and by the Minister for Finance, will not affect the regulatory capital of the bank, Paul Sreenan SC said.
Bank of Ireland chief executive Richie Boucher said in an affidavit that the reserve will be treated as profits available for distribution and is intended to ensure the bank has sufficient reserves, after accounting for possible losses, to be able to pay dividends.
The bank sought the full €3.92 billion authorised under a measure approved by shareholders to ensure the bank had a buffer available to protect it from volatile markets.
The Government bailed out the bank in 2009 with a €3.5 billion investment by way of preference shares. The State converted almost €1.7 billion of this into equity shares in a rights issue to raise further capital in 2010. The bank was due to pay a coupon, or annual interest payment, on the shares to the State in February 2010 but instead paid in equity.
The State received a dividend of €214 million in February 2011 and €188 million last February. The next dividend is due on February 20th. Under the first State bailout of the bank, the lender must repay the €1.8 billion preference shares by March 31st, 2014 or else pay 125 per cent of this amount.
Looks like bottomed?
nvesting
Sell Fannie and Freddie Common, Buy the Preferred (Update 3)
By Philip van Doorn03/21/13 - 04:41 PM EDT
Stock quotes in this article: FNMA, FMCC, BAC
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Updated from 3:14 p.m. ET with market close information.
More on FNMA
Wild Stock Action Continues for Fannie PreferredBond Funds That Should Lead the PackFannie and Freddie Common Shares Sink: Financial Losers
NEW YORK (TheStreet) -- It's been quite a ride for common shares of Fannie Mae (FNMA) and Freddie Mac (FMCC) over the past two days.
But the preferred shares are the better deal.
Fannie Mae's common shares were down 28% to close at 78 cents, after rising 80% over the previous two days. Freddie Mac's common shares also sank 28% to close at 78 cents, following a gain of 71% over the previous two trading sessions.
Meanwhile, the action in Fannie Mae's preferred shares intensified. Fannie's preferred series E (FNMFM) shares were up 60% to close at $11.20, after rising as high as $17 late Thursday morning. The preferred Series E shares had risen 34% on Tuesday. The Fannie Mae preferred series E shares have a coupon of 5.10% and a par value of $50.00.
Freddie Mac's preferred series Z (FMCKJ) shares, with a coupon of 5.375% and a par value of $25, pulled back 1% to close at $3.16, after rising 6% on Tuesday.
Both mortgage giants were taken under government conservatorship by the Federal Housing Finance Agency in September 2008. At that point, common and preferred shares of Fannie Mae and Freddie Mac were pretty much given up for dead, with little prospect the companies would resume operating as private companies and very little prospect for the payment of dividends on existing preferred stock.
The fun began early Tuesday when the Wall Street Journal brought attention to Fannie Mae's plan to delay filing its annual 10-K report to the Securities and Exchange Commission. Fannie said it would need extra time to analyze whether or not it could recapture some of its $61.5 billion valuation allowance for deferred tax assets (DTA), as of Sept. 30.
That's a very big deal, because the money could go quite a long way in helping the company redeem $116.1 billion in preferred stock held by the U.S. Treasury, for bailout assistance since September 2008.
Freddie Mac was able to file its 10-K on time, saying that the company's DTA valuation allowance was $31.7 billion as of Dec. 31. The government holds $72.2 billion in Freddie Mac preferred shares.
The common shares of both companies have soared on the obvious hopeful prospect that since both are now profitable and both may get a "head start" on repaying the government if the DTA are recaptured, the shares will have real value.
Daytraders have obviously been looking to make quick killings on the common shares. For the preferred shares, the story is very interesting, because the future of the GSEs hasn't yet been determined. Fannie and Freddie together back roughly 90% of newly originated mortgage loans in the U.S. Please see TheStreet's previous coverage of Fannie Mae and Freddie Mac for detailed discussions on what Congress and President Obama may have in store for the future of the GSEs.
Fannie and Freddie are still with us for a very obvious reason. The credit crisis was no time for a radical redesign of the mortgage finance structure in the U.S. The economic recovery following the crisis has been slow and fragile and the federal government still isn't keen to reinvent the wheel when so much is at stake.
Depending on what Congress and the president ultimately agree on as a way forward for Freddie and Fannie, if the GSEs fully repay the government and go on operating, there is hope for eventual payment of dividends on preferred shares not held by the government. Please see Dan Freed's article on TheStreet for a discussion on legal aspects supporting some private investors' decisions to continue holding Fannie and Freddie preferred stock.
Going back to our preferred stock examples, it's obvious that new investors can make quick gains if the shares go up, but what about the income? If the dividend were resumed on Fannie Mae's preferred series E shares, investors would receive annual income of $2.55 a share. That would be a pretty fat yield 36.48% for investors who went in Wednesday at $6.99 a share.
If Freddie Mac was able to resume the dividend on its preferred series Z shares, the annual income would be $1.34 a share. That would make for a lovely yield of 41.99%, for investors who purchased the shares at the closing price of $3.20 on Wednesday.
One professional investor says the preferred shares are a much better play for investors than the common shares. For starters, preferred shareholders are always ahead of common shareholders if the companies are ultimately wound down. And with Fannie and Freddie set to book huge profits as housing prices continue to recover and with credit recoveries similar to Fannie's huge settlement with Bank of America (BAC) in January, the GSEs may be in solid shape far sooner than anyone expected when they were bailed out.
GSE Preferred Over Common, by the Numbers
The numbers make the case for the preferred shares being worth much more than the common shares.
The face value of Fannie Mae's junior preferred shares -- that is, shares not held by the U.S. Treasury -- is $19 billion. That's just 0.6% of Fannie's total assets. The market value of Fannie's junior preferred shares was roughly $1.9 billion at Wednesday's market close. The market value of Fannie's common shares -- including warrants held by the government -- was $6.2 billion.
http://www.thestreet.com/story/11876299/1/sell-fannie-and-freddie-common-buy-the-preferred.html?cm_ven_int=morefrombox
Financial Winners & Losers
Fannie and Freddie Common Shares Sink: Financial Losers
By Philip van Doorn03/21/13 - 04:41 PM EDT
Stock quotes in this article: FNMA, FMCC, I:BKX
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NEW YORK (TheStreet) -- Common shares of Fannie Mae (FNMA) and Freddie Mac (FMCC) on Wednesday were the big financial losers among major U.S. financial stocks.
More from Philip van Doorn
Wild Stock Action Continues for Fannie PreferredSell Fannie and Freddie Common, Buy the Preferred (Update 3)Fannie and Freddie Keep Soaring: Financial WinnersFannie and Freddie Stocks Are Still Hot (Update 4)
Fannie Mae's common shares were down 28% to close at 78 cents, after rising 80% over the previous two days. Freddie Mac's common shares also sank 28% to close at 78 cents, following a gain of 71% over the previous two trading sessions.
Investors seem to buy the notion that Fannie Mae's preferred shares are a better deal than the common, as the company figures out whether it will be able to recapture a major portion of its $61.5 billion valuation allowance for deferred tax assets (DTA). That would go quite a long way toward redeeming $116.1 billion in preferred shares held by the U.S. Treasury for bailout assistance to the company.
For example, Fannie's preferred series E (FNMFM) shares were up 60% to close at $11.20, after rising as high as $17 late Thursday morning. The preferred Series E shares had risen 34% on Tuesday. The Fannie Mae preferred series E shares have a coupon of 5.10% and a par value of $50.00.
Freddie Mac's preferred series Z (FMCKJ) shares, with a coupon of 5.375% and a par value of $25, actually pulled back 1% to close at $3.16, after rising 6% on Tuesday.
Both Fannie and Freddie were taken under government conservatorship by the Federal Housing Finance Agency in September 2008. The shares of both companies have been extremely volatile since Wall Street Journal called attention to a filing last Thursday, when the Fannie said it would delay filing its annual 10-K report to the Securities and Exchange Commission, specially to consider the DTA issue.
Please see TheStreet's extensive coverage of Fannie and Freddie for more about why the preferred shares are better play for investors than the common shares by the numbers, and for various legal reasons.
Some investors have been comparing the conservatorship and government bailout of Fannie Mae and Freddie Mac to the successful bailout of American International Group (AIG), which turned out to be quite profitable for the U.S. Treasury and for taxpayers. TheStreet's Dan Freed on Thursday discussed why Fannie and Freddie differ from AIG.
Financial Services
Wild Stock Action Continues for Fannie Preferred
By Philip van Doorn03/22/13 - 11:32 AM EDT
Stock quotes in this article: FNMA, FMCC
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NEW YORK (TheStreet) -- The intense ride continued for Fannie Mae (FNMA) continued on Friday morning.
More from Philip van Doorn
Sell Fannie and Freddie Common, Buy the Preferred (Update 3)Fannie and Freddie Common Shares Sink: Financial LosersFannie and Freddie Keep Soaring: Financial Winners
Fannie Mae's common shares were up 4% in late morning trading to 81 cents, while common shares of its sister company Freddie Mac (FMCC) were up over 2% to 80 cents.
Fannie's common shares on Thursday sank 28%, following a gain of 80% over the previous two trading sessions. Freddie's common shares on Thursday dropped 28% on Thursday, after seeing a gain of 71% over the previous two days.
The action in Fannie Mae's preferred shares remains very strong. For example, Fannie's preferred series E (FNMFM) shares, with a coupon of 5.10% and a par value of $50, rose were up 18% late Friday morning to $13.20, after a gain of 115% over the previous two trading sessions.
The trading interest in Freddie Mac's preferred shares has been more subdued, but in the same upward direction. For example, Freddie's preferred series Z (FMCKJ) shares, with a coupon of 5.375% and a par value of $25, were up 2% to $3.23 late Friday morning, after a gain of 5% over the previous two days. Through Thursday's close at $3.20, the Freddie Mac preferred series Z shares were up 52% from a month earlier.
Both mortgage giants were taken under government conservatorship by the Federal Housing Finance Agency (FHFA) in September 2008. At that point, common and preferred shares of Fannie Mae and Freddie Mac were considered worthless by most investors, who saw a very low probability for the government sponsored enterprises (GSEs) to resume operating as private companies, and very little prospect for the payment of dividends on existing preferred stock.
This week's ride for the shares began on Tuesday, when The Wall Street Journal brought attention to a March 14 filing, when Fannie Mae said it would delay filing its annual 10-K report to the Securities and Exchange Commission. Fannie said it would need extra time to analyze whether or not it could recapture some of its $61.5 billion valuation allowance for deferred tax assets (DTA), as of Sept. 30.
The recapture of Fannie's DTA would provide a major boost to the company's effort to redeem $116.1 billion in preferred stock held by the U.S. Treasury, for bailout assistance since September 2008.
Financial Winners & Losers
Fannie, Freddie: Winners on Bailout Payback Hopes
By Philip van Doorn03/19/13 - 04:49 PM EDT
Stock quotes in this article: FNMA, FMCC, MS, I:BKX
It isn't clear whether any sophisticated investors see potential value in Fannie or Freddie common stock. Fannie and Freddie preferred shares have drawn interest from some hedge funds, however. Probably the best-known investor to have acknowledged buying Fannie or Freddie preferred shares since the GSEs were put into conservatorship in 2008 is Kyle Bass of Hayman Capital. Bass told TheStreet in an email exchange in August that he had given up on the investment when he concluded that both Republicans and Democrats "wanted them dead."
More from Philip van Doorn
Wild Stock Action Continues for Fannie PreferredSell Fannie and Freddie Common, Buy the Preferred (Update 3)Fannie and Freddie Common Shares Sink: Financial LosersFannie and Freddie Keep Soaring: Financial WinnersFannie and Freddie Stocks Are Still Hot (Update 4)Regulators Lump JPMorgan With Crisis-Era Banks (Update 1)
In a follow-up email exchange on Tuesday, Bass wrote, "we have no position. Period. I won't comment on anything else."
Another investor, Michael Kao of Akanthos Capital Management, continues to believe the preferred shares are a good investment. Kao has consistently argued for more than two years that the preferred shares have value. Over that time the Freddie Mac preferred series Z shares, one of the most actively traded issues, have gone up and down -- from below $1 to more than $3, back below $1 and now back to over $3.
Investments in Fannie and Freddie are, of course, highly speculative, because neither President Obama nor Congress has arrived at a way forward for the U.S. mortgage finance market, which continues to be dominated by the two firms.
House Financial Services Committee Chairman Jeb Hensarling (R., Texas) on Tuesday said in a statement before FHFA Chairman Edward DeMarco was due to testify in front of the committee that "I am determined that this hearing will be the last time that Director DeMarco, or if you believe press reports, his successor, will testify before this Committee before we finally and belatedly markup true GSE reform legislation." The GSE, or government-sponsored enterprises, include Fannie and Freddie, as well as smaller agencies, such as Ginnie Mae.
In his prepared testimony, DeMarco said "few of us could have imagined in 2008 that we would be approaching the fifth anniversary of placing Fannie Mae and Freddie Mac in conservatorships and have made little meaningful progress to bring these government conservatorships to an end."
According to DeMarco, the conservatorship was meant to provide a "time out," in order for "Congress and the Administration could figure out how best to address future reforms to the housing finance system."
Welcome.
Great background.
Looking forward to your contributions.
GL
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