HALISTER: Johnson & Johnson to Buy Actelion for CHF280.08/Share

Johnson & Johnson to Buy Actelion for CHF280.08/Share

(Bloomberg) -- J&J agrees to launch an all-cash tender offer in Switzerland to acquire all of the outstanding shares of Actelion for $280 per share, payable in U.S. dollars, equates to CHF280.08/share as of Jan. 25.
  • Transaction, which was unanimously approved by the Boards of Directors of both companies, is expected to be immediately accretive to J&J adjusted EPS and accelerate J&J revenue and earnings growth rates
  • J&J will fund the transaction with cash held outside the U.S.
  • As part of the transaction, immediately prior to the completion of the acquisition, Actelion will spin out its drug discovery operations and early-stage clinical development assets into a newly created Swiss biopharmaceutical company ("R&D NewCo")
    • Shares of R&D NewCo, which will be listed on SIX, will be distributed to Actelion’s shareholders as a stock dividend upon closing of the tender
    • Johnson & Johnson will initially hold 16% of the shares of R&D NewCo and have rights to an additional 16% of R&D NewCo equity through a convertible note
  • Statement:Link
Alert: HALISTER
Source: BFW (Bloomberg First Word)

Tickers
ATLN VX (Actelion Ltd)
JNJ US (Johnson & Johnson)

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(2) *JOHNSON & JOHNSON TO BUY ACTELION FOR CHF280.08/SHR

*JOHNSON & JOHNSON TO BUY ACTELION FOR CHF280.08/SHR

Alerts: HALISTER, HALISTER1
Source: BN (Bloomberg News)

Tickers
ATLN VX (Actelion Ltd)
JNJ US (Johnson & Johnson)

People
Alex Gorsky (Johnson & Johnson)
Jean-Paul Clozel (Actelion Ltd)
William Johnson (Citigroup Inc)

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HALISTER1: USD/JPY May Firm If Japan CPI Slows in Line With Est.: Analysis

USD/JPY May Firm If Japan CPI Slows in Line With Est.: Analysis

(Bloomberg) -- USD/JPY may adopt a bid tone if Japan’s December CPI slows in line with forecast, spurring investors to contemplate a dovish BOJ stance at the policy meeting next week, Bloomberg strategist David Finnerty writes.
  • USD/JPY is presently driven by position adjustments to the “Trump trade”, but signs of slowing inflation in Japan could prompt BOJ to signal at its Jan. 31 meeting the potential for a more dovish policy
    • Since BOJ adopted the current yield curve control policy in September, the central bank’s own inflation gauge has yet to show a positive trend; indeed, it is forecast to slow to 0.1% y/y in December from 0.2% in November, the lowest since Sept. 2013
  • BOJ’s opinion statement in December noted that “Japan is at a critical juncture with regard to achieving price stability and sustainable growth,” indicating that a series of weaker readings may lead it to tweak its policy in 2017
  • Japan’s December headline will rise 0.2% y/y in December versus 0.5% y/y in November, according to median est. of economists in Bloomberg survey; data due 8:30am local time Jan. 27
    • Timelier Tokyo CPI for January is expected to confirm a lack of price pressure with median est. of 0.0% y/y, unchanged from the previous momth
  • USD/JPY finds initial technical support at 112.53, Jan. 24 low with resistance at 114.96, 50-DMA and 115.62, Jan. 19 high
  • NOTE: David Finnerty is an FX strategist who writes for Bloomberg. The observations he makes are his own and are not intended as investment advice.
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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HALISTER1: Japan Yields Lifted by Overseas Rates, BOJ Spillover: Barclays

Japan Yields Lifted by Overseas Rates, BOJ Spillover: Barclays

(Bloomberg) -- Japanese government bond yields rise across the board, taking their cue from higher yields in global rates markets and spill-over effect from the Bank of Japan operations Wednesday, says Naoya Oshikubo, a rates strategist at Barclays.
  • BOJ skipped outright buying of JGBs in 1-to-5 year maturities Wednesday, raising the prospect that frequency of purchases for that sector will be cut to 5 from 6 previously: click here for story
    • 10-year JGB yield up 1bp to 0.085%, highest since Dec. 16 when it hit 0.1%, the level BOJ targets in its yield curve control policy; 40-year yield rose to as high as 0.995% Wednesday, highest since last February
    • 30-year rises to 0.83% to match yesterday’s high, which is the most since March and 20-year yield is at 0.65%
  • “BOJ is likely to conduct buying of 1-to-5-year sector tomorrow as yesterday’s move was probably aimed at stemming the sharp decline in that zone on extremely tight supply and demand balance,” Oshikubo says
  • Focus for Friday’s operation is on whether BOJ would conduct buying for maturities ~10 years, as it has already conducted 5 such operations this month as planned
    • If the BOJ skips outright buying operation for that sector, it won’t come as a surprise; but as there is speculation for such an operation, yields could climb before the operation is announced as markets will test BOJ’s resolve
    • There was also speculation Wednesday the BOJ might boost amount of bonds it buys for super-long zones as yields were climbing; but the central bank bought just the regular amount, it could suggest BOJ is tolerating a rise in super-long yields
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

Tickers
8301 JP (Bank of Japan)

People
Naoya Oshikubo (Barclays PLC)

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