China sold U.S. Treasury securities in March, reducing its holdings for the fifth straight month while remaining the largest foreign holder, the Treasury Department said Monday.
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| China Flag |
China's holdings fell $9.20 billion to $1.145 trillion, following net selling of $600 million in February.
Meanwhile, Japan has been a heavy net buyer in recent months,
accumulating Treasurys at record levels. Japan remained the second-largest holder of Treasurys, lifting its holdings to $907.9 billion from $890.3 billion in February.
accumulating Treasurys at record levels. Japan remained the second-largest holder of Treasurys, lifting its holdings to $907.9 billion from $890.3 billion in February.
Among all foreign investors, net purchases of U.S. Treasury notes and bonds totaled $26.78 billion, compared with net buying of $30.58 billion in February. Private foreign investors bought a net $19.54 billion Treasury notes and bonds, after buying a net of $14.72 billion the previous month.
The closely watched total of net long-term securities transactions showed total buying of $24.0 billion in March, after purchases of $27.2 billion the month before.
More broadly, net purchases of long-term U.S. securities, including transactions that don't occur on the open market, totaled $11.7 billion following net buying of $16.1 billion the month before.
The monthly Treasury report highlights cross-border acquisitions of securities with maturities of more than one year, including non-market transactions such as stock swaps and principal repayment on asset-backed securities.
The report's most comprehensive category, "monthly net TIC flows," includes non-market movements of funds, short-term securities and changes in banks' dollar holdings. This measure of net foreign capital inflow was $116.0 billion, compared with an inflow of $95.6 billion in February. Financial market analysts consider the monthly data from the Treasury Department to be a significant but imprecise gauge of how easily the U.S. can finance its trade deficit.
U.S. data released last week showed the U.S. trade deficit widened in March more than expected, as soaring oil prices caused imports to outstrip a record level of exports. The trade deficit with China, however, contracted 4.0% to $18.08 billion in March, as exports posted a much bigger gain than imports.
Foreign official institutions such as central banks bought a net $6.84 billion
of Treasury bonds and notes in March, compared with net purchases of $15.87 billion the month before.
of Treasury bonds and notes in March, compared with net purchases of $15.87 billion the month before.
Net foreign purchases of debt issued by U.S. government-sponsored agencies like Fannie Mae and Freddie Mac totaled $9.49 billion, compared with a net $1.49 billion in sales in February.
For U.S. equities, net foreign purchases totaled $14.70 billion, compared with purchases of $6.10 billion the previous month.
For corporate bonds, net foreign purchases were $3.77 billion, versus sales totaling $2.54 billion the previous month.
( Source: WSJ )
( Source: WSJ )
After our breakout alert on Smokefree Innotec ( PINK:SFIO ) last week, stock has logged a very decent up move of more than 1600 % so far.Read more about alerts here
Today the stock has moved another 25 % in the morning trade, but we might look cautiously at stock now for fresh buy positions either for trading or investment purpose. Check out our recommendations and tips on Smokefree Innotec.
Today the stock has moved another 25 % in the morning trade, but we might look cautiously at stock now for fresh buy positions either for trading or investment purpose. Check out our recommendations and tips on Smokefree Innotec.
Stock of the company Orthovita inc ( NASDAQ:VITA ) jumped 40 % in the morning
trade after takeover news from Stryker Corporation ( NYSE:SYK) at $ 3.85 per share in cash and stock of Orthovita Inc is trading close to that price.
trade after takeover news from Stryker Corporation ( NYSE:SYK) at $ 3.85 per share in cash and stock of Orthovita Inc is trading close to that price.
Below is the press release:
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| Orthovita Inc Logo |
Stryker Corporation (NYSE:SYK) announced today a definitive agreement to acquire Orthovita, Inc. (Nasdaq:VITA), a global developer and manufacturer of orthobiologic and biosurgery products through an all cash tender offer. Orthovita competes in the $5 billion orthobiologics market and is a global leader in synthetic bone grafts with its Vitoss(TM) product offering, and also competes in vertebral augmentation with its Cortoss(TM) product offering. In addition, the company's Biosurgery business manufactures hemostasis products such as Vitagel(TM) which are designed to control intra-operative and post-operative bleeding. Combined, Orthovita's product portfolio achieved sales of $95 million in 2010. The acquisition of Orthovita is highly complementary to Stryker's existing orthobiologics offering, which is currently sold through multiple Stryker divisions.
Under the terms of the agreement, Orthovita shareholders will receive $3.85 for each outstanding Orthovita share of common stock. The value of the transaction is estimated at $316 million, based upon Orthovita's 79 million fully diluted shares outstanding as well as net debt of $12 million.
"With this acquisition we are meaningfully expanding our orthobiologics product portfolio and strengthening our competitive position in key segments of the Spine, Orthopaedics and Biosurgery markets," said Stephen P. MacMillan, Chairman, President and Chief Executive Officer of Stryker. "We believe the collective talent of our sizable sales forces across multiple franchises positions us to build on Orthovita's success and accelerate sales growth."
The boards of directors at Stryker and Orthovita have approved the transaction, and the board of directors of Orthovita resolved to recommend that Orthovita shareholders tender their shares to Stryker in the tender offer. In addition, shareholders holding approximately 14.5% of the outstanding shares of Orthovita common stock have entered into agreements with Stryker to support the transaction and to tender their shares in the offer.
The tender offer is scheduled to commence within 10 business days and is expected to close in the second quarter of 2011. The tender offer is subject to customary closing conditions, including the tender of a majority of the outstanding shares of Orthovita common stock on a fully diluted basis and the expiration or termination of the Hart-Scott-Rodino Antitrust Improvements Act waiting period. Following the tender offer, Stryker will acquire the remaining outstanding shares of Orthovita common stock through a second step merger. Upon closing, the transaction is expected to be neutral to Stryker's 2011 earnings per share excluding acquisition and integration-related charges.
Citi served as Stryker's exclusive financial advisor in connection with this transaction.
Stryker is one of the world's leading medical technology companies and is dedicated to helping healthcare professionals perform their jobs more efficiently while enhancing patient care. The Company offers a diverse array of innovative medical technologies, including reconstructive, medical and surgical, and neurotechnology and spine products to help people lead more active and more satisfying lives. For more information about Stryker, please visit www.stryker.com.
Additional Information
This communication is for informational purposes only and is not an offer to purchase or the solicitation of an offer to sell any shares of Orthovita, Inc. common stock. The tender offer described herein has not yet been commenced. At the time the tender offer is commenced, Stryker Corporation will file a tender offer statement on a Schedule TO with the Securities and Exchange Commission (the "SEC"), and Orthovita, Inc. will file with the SEC a solicitation/recommendation statement on Schedule 14D-9 with respect to the offer. The solicitation of offers to buy shares of Orthovita, Inc. common stock will only be made pursuant to the offer to purchase, the letter of transmittal and related documents. Orthovita, Inc. stockholders are strongly advised to read both the tender offer statement on Schedule TO, as it may be amended from time to time, and the solicitation/recommendation statement on Schedule 14D-9, as it may be amended from time to time, regarding the tender offer when they become available as they will contain important information, including the various terms of, and conditions to, the tender offer. Investors and stockholders may obtain free copies of these statements (when available) and other documents filed by Stryker Corporation and Orthovita, Inc. at the SEC's website at www.sec.gov. In addition, the tender offer statement and related materials will be available for free at Stryker Corporation's website at www.stryker.com or by directing such requests to Stryker Corporation (Investor Relations) at (269) 389-2600. The solicitation/recommendation statement and such other documents will be available by directing such requests to Nancy C. Broadbent, Senior Vice President and Chief Financial Officer at Orthovita, Inc. at (610) 640-1775 or (800) 676-8482.
This press release contains information that includes or is based on forward-looking statements that are subject to various risks and uncertainties that could cause the Company's actual results to differ materially from those expressed or implied in such statements. Such factors include, but are not limited to: weakening of economic conditions that could adversely affect the level of demand for the Company's products; pricing pressures generally, including cost-containment measures that could adversely affect the price of or demand for the Company's products; changes in foreign exchange markets; legislative and regulatory actions; unanticipated issues arising in connection with clinical studies and otherwise that affect U.S. Food and Drug Administration approval of new products; changes in reimbursement levels from third-party payors; a significant increase in product liability claims; unfavorable resolution of tax audits; changes in financial markets; changes in the competitive environment; and the Company's ability to consummate and integrate acquisitions, including the acquisition of Orthovita. Additional information concerning these and other factors are contained in the Company's filings with the U.S. Securities and Exchange Commission, including the Company's Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.
Top Image Systems ( NASDAQ: TISA ), company stock has jumped more than 28 %
in the morning trade after it has announced launch of a mobile banking platform to fulfill Customer's need to access banking on smart phones. Volumes already crossed daily average in few minutes after opening. We think that the buy positions may be initiated for investment purpose not for trading purpose.
Below is the news from company:
(GLOBE NEWSWIRE) -- Top Image Systems™ (TIS™), Ltd. (Nasdaq:TISA) (TASE:TISA), the leading ECM (Enterprise Content Management) solutions provider, announced today that it has launched mobile banking solutions that allows financial institutions to better respond to customer demand for mobile based capabilities using smart phones. TIS's new solutions offer a variety of applications addressed to meet the unique needs of Banks, including check deposit, utility bill payment and invoice payment.
in the morning trade after it has announced launch of a mobile banking platform to fulfill Customer's need to access banking on smart phones. Volumes already crossed daily average in few minutes after opening. We think that the buy positions may be initiated for investment purpose not for trading purpose.
Below is the news from company:
(GLOBE NEWSWIRE) -- Top Image Systems™ (TIS™), Ltd. (Nasdaq:TISA) (TASE:TISA), the leading ECM (Enterprise Content Management) solutions provider, announced today that it has launched mobile banking solutions that allows financial institutions to better respond to customer demand for mobile based capabilities using smart phones. TIS's new solutions offer a variety of applications addressed to meet the unique needs of Banks, including check deposit, utility bill payment and invoice payment.These new applications address the banking industry's need to offer customers value-added services that will result in a significant advantage in today's competitive banking market. Checks, utility bills and invoices are easily and securely sent to the bank for deposit or payment using a camera-equipped smart phone.
TIS solutions comply with financial regulations and provide banks with cutting edge and appealing technology to offer customers. TIS's banking customers are able to recognize considerable cost savings as document receipt and processing are fully automated and processed more quickly and accurately. In turn, financial institutions can deliver a better banking experience to their customers, saving them valuable time while maintaining the high security standards they have come to expect from their bank.
"Launching our mobile banking solutions platform demonstrates our commitment to the banking sector as well as highlights our increasing influence in the segment as we remain focused on executing our growth strategy," commented Clive Williams Senior Vice President of TIS Business Banking Unit.
"The impact of smart phone technology on everyday life is undeniable and developing applications that make the most of this trend is imperative. The momentum behind mobile banking has financial institutions looking to accelerate adoption of mobile banking solutions. As a key player in ECM banking solutions, it is only natural that we offer innovative smart phone technology as part of our eFLOW™ product suite that improves our banking customers ability to attract and retain their customers," added Clive Williams Senior Vice President of TIS Business Banking Unit.
TIS MOBILE BANKING SOLUTIONS
The new mobile banking solutions are part of TIS's successful eFLOW Banking Platform -- a unique solution designed to address the specific needs of local and global banks. Any information entering the bank, whether paper based or digital, in the front or back office is processed, understood, classified and delivered fully automated through the business processing chain with minimal errors.
For over a decade, TIS has been solving the real life challenges that come with MRC, with the many satisfied customers serving as a testament to effectiveness of TIS and its solutions. TIS MRC solutions are able to overcome all of the most pressing digital content management issues facing banks today, including: processing for wrong image orientation, skewed documents, dark shadows, document compression and conversion to enable automation or straight through processing.
The eFLOW Banking Platform handles all the heavy lifting, in the background, and without the involvement of the bank or its customers. For example, a customer can capture the upside down image of a check from anywhere – even in places with low ambient lighting – simply hit the "Send" from a smart phone, and know that the data will be sent securely and will readable by the bank. Behind the scene, TIS's eFLOW Banking Platform is capturing the image, rotating it, "cleaning" shadows and automatically adjusting contrast; it then extracts the check's MICR line, compares the amount, verifies the signature, and reads the account number and balance before sending it on to bank's system for clearing.
Glenmark Pharmaceuticals Ltd. stock got a booster Monday after the company said it has agreed to license out development and commercialization rights of a biologic treatment to France's Sanofi-Aventis S.A.
Shares in the company zoomed up almost 20% to 327.80 rupees ($7.31) – the highest price in a month – before paring some of the gains. In afternoon trade on the Bombay Stock Exchange, Glenmark was up 12% at 306.60 rupees, while the benchmark Sensex was down 0.7%.
This is the sixth such deal that the Indian drug maker has signed in its endeavor to create a new product under a licensing agreement with a foreign pharmaceutical company. The strategy is aimed at helping finance costly and lengthy research.
The difference this time is that Glenmark isn't licensing out a chemicals-based molecule. It is selling the licenses for an experimental biological drug – complex proteins manufactured in living cells – aimed at treating Crohn's disease and other conditions such as multiple sclerosis.
Under the deal, Sanofi could potentially pay Glenmark $613 million for the drug, code-named GBR500, achieving certain development, regulatory and commercial milestones, including $50 million as upfront payment.
Glenmark claims that it's the first Indian company to have successfully sold a license for a biologic treatment.
"It's the first novel biologic out-licensing deal coming from any Indian company,
" Glenmark Chief Executive Glenn Saldanha told reporters in Mumbai Monday.
" Glenmark Chief Executive Glenn Saldanha told reporters in Mumbai Monday.
Macquarie Capital analyst Abhishek Singhal told television news channel CNBC-TV18 that the deal "reinforces the credibility of Glenmark's innovation pipeline where they have been able to crack an out-licensing deal on a novel biological entity."
Mr. Singhal said Glenmark is one of Macquarie's preferred pharmaceutical stock picks. Macquarie has a target price of around 445 rupees on Glenmark, without valuing any upside from the Sanofi deal.
An analyst with a Mumbai-based brokerage said that the deal is positive for Glenmark as it will allay investor concerns over the company's cash flow issues.
But the analyst, who declined to be named, said he doesn't expect Glenmark stock to move up further from current levels as Monday's bounce more than accounts for the upside from the Sanofi deal news.
Glenmark has experienced a turnaround since the fiscal year ended March 31, 2009, when its net profit plunged to 1.93 billion rupees from 6.32 billion rupees as sales fell across markets. Cash flows were further strained when financing costs shot up on loans taken to fund the company's aggressive global expansion, while milestone payments from drug licensing partners dried up.
Glenmark has since focused on improving its cash flow position by controlling working capital expenditure, deferring non-essential spending and paring debt. At the same time, it has benefited from growth returning to most markets and renewed interest in its drug research and development programs.
The company last week reported net profit of 4.58 billion rupees for the fiscal year through March 2011. It added that this number conformed to International Financial Reporting Standards and may not be comparable with the previous fiscal year.
Mr. Saldanha told reporters Monday that the company will use the $50 million received upfront from Sanofi to repay part of its debt, which he said currently stands at about 19 billion rupees ($423 million).
State-run Steel Authority of India plans to launch the first of its two-phase follow-on share sale June 14, Chairman C.S. Verma said Monday.
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Steel Authority of India expects to raise 60 billion rupees from first tranche of its follow-on share sale on June 14.
"Given the current market conditions, we expect to raise 60 billion rupees from the share sale," Mr. Verma said.
The stock was 2% down at 152 rupees on the Bombay Stock Exchange
in afternoon trading, underperforming the benchmark index's 1% decline.
in afternoon trading, underperforming the benchmark index's 1% decline.
The Indian government plans to sell a 5% stake the country's largest steel producer in the first phase, while the company will issue an equal amount of new equity through new shares. The second phase will also comprise a similar equity issue, taking the total stake on offer to 20% and the expected proceeds to 120 billion rupees.
Steel Authority, where the government now holds an 85.82% stake, is among several state-run companies in which the government plans to sell a minority stake to raise 400 billion rupees in the current fiscal year for social-sector projects. The proceeds from selling newly issued shares will go to the company.
The share issue was initially planned for the last fiscal year ended March 31, but was delayed due to market volatility. The government last week restarted its disinvestment process with the launch of Power Finance Corp.'s 46.6 billion rupees offering.
Mr. Verma said Steel Authority will use the proceeds from selling new shares to part-fund its expansion and meet capital expenditure for the current fiscal year.
Steel Authority is in the process of raising its hot metal production capacity to 23.5 million metric tons by the end of the fiscal year through March 31, 2013 from the present 14.6 million tons at a total cost of 700 billion rupees.
The first phase of Steel Authority's share sale will remain open to retail investors until June 17, the chairman said, adding that the company is considering giving a 5% price discount to retail investors and employees.
Mr. Verma said the company will start overseas promotional programs for the share offering by the end of May.
A senior steel ministry official, who spoke on condition of anonymity, said the company's road shows in Singapore and Hong Kong will happen between May 24 and May 27, while those in the U.S will take place from June 2 to June 7 and in Europe between June 1 and June 6.
The company's board is scheduled to meet May 23 to clear the initial prospectus for the share sale, the official said.
Steel Authority is expected to file its share sale prospectus with the capitals market regulator on June 1, he added.
Most of the young billionaires in China have built their fortune from nearly nothing, said a media report.
There are 1,900 billionaires living in China.
As many as 80 percent of the people who have at least 1 billion yuan ($154 million) and are below 40 years of age made their career after starting at the bottom, reported China Daily citing the Hurun Report that was on 56 super-rich people.
Thirtynine-year-old Ma Huateng who is co-founder of China's largest Internet company Tencent
is right on top of the rich list with a fortune worth 32 billion yuan.
is right on top of the rich list with a fortune worth 32 billion yuan.
The young billionaires worked to build their fortunes and did not inherit it. As many as 44 of them started businesses from scratch, while just 12 inherited fortunes or estates.
Hurun Report chief researcher Rupert Hoogewerf said China's new generation of the super-rich are better educated, more promising and more cosmopolitan.
Nearly each had been to college and of them 20 percent had earned a master's or higher degree. Fifty percent had studied in the US or Europe, the media report said.
Six percent of those surveyed had been to business schools.
A ministerial panel is likely to meet on May 27 to consider Cairn Energy Plc's sale of a majority stake in its Indian unit to Vedanta Resources , a full seven days after the current deadline for closing the deal expires.
"A Group of Ministers (GoM) headed by Finance Minister Pranab Mukherjee is scheduled to meet at 1630 hours on May 27 to vet Cairn Energy's sale of 40 per cent interest in Cairn India to Vedanta," a senior government official said here.
Cairn and Vedanta have set May 20 as the deadline for closing the USD 9.6 billion transaction.
Industry sources said Cairn is likely to seek another extension of the deadline in advance of its annual general meeting on May 19.
It is not clear if the GoM would take more than one meeting to vet the proposal,
after which it has to go back to the Cabinet Committee on Economic Affairs (CCEA) -- the final approval authority in this case.
after which it has to go back to the Cabinet Committee on Economic Affairs (CCEA) -- the final approval authority in this case.
Cairn, which had previously set April 15 as the deadline for concluding the sale, had raised a hue and cry over the government's procrastinated approach to vetting the deal, saying the timelines were sacrosanct and could not be extended.
But a day after the CCEA on April 6 referred the deal for vetting to the GoM, the deadline was extended to May 20.
The GoM, which, besides Mukherjee, compromises Oil Minister S Jaipal Reddy, Law Minister M Veerapa Moily, Planning Commission Deputy Chairman Montek Singh Ahluwalia and Telecom Minister Kapil Sibal, is split right in the middle on the issue of giving approval to the deal.
The Law Ministry and Planning Commission have backed Reddy's first option of giving clearance to Vedanta only if it agrees to ONGC being allowed to recover the Rs 18,000 crore in royalty that the state-owned firm is liable to pay on behalf of Cairn India in the all-important Rajasthan oilfields.
The Finance Ministry is in favour of Reddy's second option of the government giving consent without any precondition and taking appropriate decisions to protect ONGC's interests.
The GoM to vet the Cairn-Vedanta deal was originally to have its first meeting on May 2.
The ministerial panel was to deliberate on whether Vedanta, with no experience in oil and gas sector, should be given unconditional approval for buying a company that owns the nation's largest onland oil fields or given clearance after attaching reasonable conditions.
The official said Reddy had listed two options. The first was giving approval subject to state-owned ONGC being allowed to recover the Rs 18,000 crore it is liable to pay in royalty on behalf of Cairn India.
Alternatively, he suggested that the government gives its consent to the deal without any precondition and take an "appropriate decision" to enforce ONGC's right.
Oil and Natural Gas Corp (ONGC) has a 30 per cent stake in Cairn India's mainstay Rajasthan oilfields, but it is liable to pay royalty not just on its share, but also on Cairn's 70 per cent share of crude oil from the field.
Both banks and their holding companies may have to get listed under the rules being considered to introduce a holding company structure for banks. The Reserve Bank of India (RBI) was in favour of allowing only the holding company of a bank to be listed, while the finance ministry wanted the decision to be left to the banks.
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| Reserve Bank of India |
A compromise solution could be that both the bank and its holding company get listed. This will mean that financial conglomerates such as HDFC and ICICI Bank will have to bring all their financial services and banks under a holding company and list it.
"If a bank is a listed entity, it would be under more scrutiny both from inside, like in the form of independent directors, and also the public," a finance ministry official said. In its draft guidelines on new banking licences, the RBI had suggested that a new bank would need to set up whollyowned, non-operative holding company (NOHC), registered as a finance company with it, governed by a separate set of prudential guidelines. Yes Bank's founder and current CEO, Rana Kapoor, says it would not be a problem for banks to set up an operating company. "The new order of banking is to ring fence the bank from capital challenges. And eventually, the holding company will reflect the ownership of the bank," he said.
An RBI official said listing the holding company of a bank would set the stage
for consolidation of accounts in systemically important financial institutions. But the differences between the government and the central bank may further delay the guidelines for new bank licences, which were expected in March. Unless there is clarity on the rules for existing banks, the RBI cannot issue guidelines for new licences, as it will create two sets of rules - one for existing banks and another for new ones.
for consolidation of accounts in systemically important financial institutions. But the differences between the government and the central bank may further delay the guidelines for new bank licences, which were expected in March. Unless there is clarity on the rules for existing banks, the RBI cannot issue guidelines for new licences, as it will create two sets of rules - one for existing banks and another for new ones.
The RBI's draft guidelines on new banking licences also said that the NOHC would need to reduce its shareholding in the bank to 15% within 10 years and retain at that level. The RBI has suggested that the holding company of the bank gets listed while the bank itself remains unlisted. The other options are that both banks and their holding companies get listed or both remain unlisted.
The finance ministry has argued that if only holding companies get listed, then private shareholders in the bank are stuck with an unlisted company. This means that the only option left is that both the bank and the holding company get listed. Amit Jain, partner, BMR Advisors, who deals in corporate restructuring is of view that listing just the holding company may impact the valuation.
"From a public perspective, the valuation may dip because the under-lying asset is in a form of downstream investment and people may be hesitant," he said. KPMG's executive director Shashwat Sharma said the Reserve Bank is concerned about holding companies that have multiple entities under them. "Its main aim is to regulate those companies and see that proper corporate governance norms are being followed," he said.
Even the RBI is keen to have its regulations in place before licences are issued. "The bill which will empower RBI to inspect related arms of banks, such as mutual funds and insurance companies, will be the first step before new licenses are issued," the RBI official said. The Banking Law Amendment Bill 2011, which has been tabled in Parliament, will empower the banking regulator to seek information and returns from associate enterprises of banking companies, besides having the power to inspect them. The Bill will also align voting rights in private banks with shareholding.
