(Reuters) – Private security firm G4S

said on Friday that U.S. rival Allied Universal has expressed interest in making an offer for the British company, which is currently in a hostile takeover battle with Canada’s GardaWorld.

In a sign that potential consolidation in the security industry was heating up, London-listed shares in G4S jumped on the prospect of another offer on the table, rising 5.5% to 212.5 pence by 1337 GMT.

Privately-held Allied Universal Security Services, G4S’ smaller rival with operations in the United States, Canada, Mexico and Britain, declined to comment.

G4S, one of the world’s largest private security companies, has repeatedly rejected GardaWorld’s 190 pence per share offer valuing it at 2.97 billion pounds ($3.84 billion), calling it “unattractive and opportunistic”.

The smaller Canadian rival, majority owned by buyout firm BC Partners, this week began meeting with key G4S shareholders regarding its offer.

The security services market received a boost during the pandemic, with G4S in July posting a better-than-expected profit, flagging strong demand for thermal cameras and screening personnel as companies reopen after lockdowns.

Employing more than 500,000 employees across 90 countries, G4S has a market value of 3.12 billion pounds as of Thursday’s close. Its stock has gained 38% since GardaWorld first made its offer public on Sept. 14.

G4S has restructured its business in recent years following a series of setbacks, including failing to provide adequate security staff for the 2012 Olympic Games in London, the loss of a contract to run a Birmingham prison, and a decision by Norway’s wealth fund not to invest in the firm.

In February this year, it sold most of its cash-handling business for 727 million pounds to U.S. peer Brinks Co

, but held on to its UK operations, which have attached pension obligations.

(Reporting by Yadarisa Shabong

SEATTLE/CHICAGO (Reuters) – Boeing Co BA.N is in discussions to sell 737 MAX jets to Alaska Airlines once the plane returns to service following a lengthy grounding, three people familiar with the matter said.

The talks are part of a series of negotiations between Boeing and several airlines over jet orders or compensation after the 737 MAX was banned worldwide following two fatal crashes.

Boeing and Alaska Airlines, which is part of Alaska Air Group Inc ALK.N, declined to comment.

Any deal would be subject to U.S. Federal Aviation Administration approval of proposed 737 MAX safety upgrades.

Boeing shares were up 1.6% at $167.22 on Thursday afternoon, while Alaska Air stock was up 4.1% at $38.54.

Alaska Airlines already had ordered 37 of the jets before the grounding. If confirmed, a new order from such a major carrier would give Boeing’s 737 MAX a sorely needed commercial boost as the U.S. planemaker tries to move beyond a crisis that has hammered its finances.

It would also mark a post-crisis test of the balance of power between Boeing and Airbus AIR.PA. The European planemaker is battling to keep a foothold in Alaska Airlines, which had operated an all-Boeing fleet until it acquired Virgin America in 2016.

However, any new deal between Alaska Airlines and Boeing is expected to include significant discounts given the MAX’s woes and plunging demand for airplanes during the coronavirus crisis, industry sources said.

It was not immediately clear how many jets it may buy.

The talks are among several discussions Boeing is having with airlines, hoping to stimulate demand for the jet when it returns to the air. Analysts caution cutting prices too far could rattle some existing customers.

After months of delays, and pending approval of design and

Investment Thesis

Fueled by chronic undervaluation despite the solid financials and a rich pipeline, Alexion Pharmaceuticals, Inc. (ALXN) has frequently been the subject of acquisition rumors as investors demand a sale of the company. Management has revised up the 2020 revenue guidance twice over the past three months, but the shares have underperformed the broader market in the year so far. The top line growth continued unabated even through a raging pandemic, and margins have also held up. The rivals are challenging the prospects, but proactive measures are in place to neutralize the threat.

The current NTM EV/EBITDA multiple stands at a sharp discount to the historical average, which, along with our conservative EBITDA forecast, based on revenue assumptions in line with the past, indicates an undervalued stock. Meanwhile, the strong cash flows and net cash position have attracted acquirers looking for growth at a cheap valuation. Amid acquisition rumors, we therefore turn “Bullish” on the stock as management’s renewed commitment to buybacks supports the shares.

Alexion_Drug Portfolio

Source: Company website

Long-term Undervaluation

Persistent undervaluation and investor demands for a sale have once again seen Alexion becoming the subject of a possible acquisition. A potential target of Amgen (AMGN) in 2019, the company has triggered interest from Biogen (BIIB) last month as the activist investor, Elliott Management, calls for a sale of the company questioning its strategic direction. Their logic is not without merit. Targeting ten product launches by 2023, the company is currently advancing twenty development programs, up from only four at the end of 2017. Since 2017, the top line has jumped ~55.9% through the LTM (last twelve-month) period, while the net income nearly doubled. Yet, the stock has dropped ~6.0% over the period, underperforming the 58.2% gain in the NBI (NASDAQ Biotechnology Index).

Alexion_Share Performance since 2017

Source: Koyfin

Underwhelming Revenue Guidance


The Securities and Exchange Commission’s staff has advised General Electric that it is considering legal action against the company for possible violations of securities laws, found during the agency’s investigation into the way GE accounted for costs associated with its now discontinued long-term care insurance business.

GE disclosed on Tuesday that it received a “Wells notice” last week from the SEC’s staff t that they may recommend the full commission bring a formal complaint soon.

The SEC has been investigating several accounting issues at the Boston-based company, including the discontinued insurance business and GE’s revenue recognition practices, particularly with regard to long-term service agreements.

This Wells notice specifically refers to an investor update in January 2018, in which GE revealed it would take a $6.2 billion charge and contribute up to $15 billion to reserves over a seven-year period for its North American Life & Health business. The insurer had underestimated how much it would cost to pay the care of policy holders who lived longer than expected, a miscalculation compounded by low interest rates.

North American Life & Health stopped writing new policies in 2006, but by that point had reinsured about 300,000 long-term care policies.

The company’s then-chief financial officer, Jamie Miller, disclosed on an earnings call in 2018 that the SEC was investigating the process that led to that insurance reserve increase and the one-time charge, as well as revenue recognition and controls for long-term contracts.

Later in 2018, GE disclosed that the SEC expanded its investigation to include GE’s Power business, after GE reported a $22 billion impairment charge related to that business, largely over a decline in the value of the power-related businesses it acquired from Alstom in 2015.

GE said in its latest statement that it continues to provide documents and other information requested

Despite what many of my fellow millennials may think, bankruptcy is a simple concept.

In my opinion, Moody’s and the other big credit rating agencies tend to be extremely conservative in their outlooks and ratings. Thus, it stood out to me that Moody’s considered Revlon’s (NYSE:REV) previous debt exchange offer, that was not accepted, to be a “Distressed debt exchange.”

The July offer Moody’s was referencing was widely rejected, with only 5.1% agreeing. 95% was needed, so that offer did not come close to being accepted.

The failed offer description, from Moody’s again:

“For any bonds tendered for exchange by August 7, 2020, each $1,000 offered by bondholders for exchange will receive $750 in new bonds plus a $50 participation fee for a total of $800. Bonds tendered between August 8, 2020 and August 21, 2020, when the exchange offer expires, will receive $750 of new bonds for each $1,000 of existing notes. The exchange offer is contingent on 95% participation from bondholders and consent from Revlon’s term loan lenders. Consent from the term loan lenders is required because the term loan credit agreements expiring in 2023 and 2025 only consider cash repayments of the February 2021 bonds. Investors who don’t participate risk having the bond covenants removed.”

Now, there is a second offer on the table. This is a new offer.

Revlon Latest Offer Description

The previous offer was higher, with less cash. This one offers $250 cash if tendered by 10/13, plus $362.5 in ABL Filo term principal, and Brandco Term loan principal, for a total of $612.50 for every $1000 in notes, or .6125 cents on the dollar.

For retail investors, the basic thing to understand is that Revlon has offered more cash for this next offer, albeit with a lower total amount from 80 cents on the dollar to .6125