TOP NEWS
* Cedar Fair LP rejected a $4 billion cash-and-stock offer from Six Flags Entertainment Corp., deeming it inadequate, Reuters reported, citing people familiar with the matter. Six Flags reportedly had also offered executives of the amusement-resort operator positions in the management of the combined company. Cedar Fair and Six Flags did not respond to the news agency's request for comment.
* Inter Ikea Holding BV may pay millions of euros in Dutch back taxes by the end of 2019 as the European Commission looks to close its two-year investigation into the home furnishings producer, Reuters reported, citing two people familiar with the matter. The scope of the case may still change the investigation's timing, the sources said. The EU executive reportedly declined to comment.
TEXTILES, APPAREL AND LUXURY GOODS
* Australian fashion retailer City Chic Collective Ltd. was the winning bidder for the e-commerce assets of U.S.-based specialty retailer Avenue Stores LLC, with an offer price of $16.5 million. The asset sale is part of Avenue's Chapter 11 bankruptcy proceedings.
* Eyewear maker Safilo Group SpA extended its contract with Kering SA to manufacture and supply Gucci-branded products for three years, beginning January 2021.
* Pepco Group, previously known as Pepkor Europe Ltd., appointed former Tesco PLC executive Trevor Masters as managing director of its namesake brand, succeeding Rob Taylor, effective Nov. 1, Reuters reported. The discount retailer is owned by Steinhoff International Holdings NV.
MULTILINE RETAIL
* Target Corp. said it will roll out The Walt Disney Co. shop-in-shops at 25 of its locations, plus an online experience. The Disney outlets, which will have have an average size of 750 square feet inside Target stores, will offer an assortment of more than 450 items.
HOUSEHOLD AND PERSONAL PRODUCTS
* Natura Cosméticos SA revised the conversion rate of its previously announced acquisition of cosmetics company Avon Products Inc., with each Avon share to be exchanged for 0.3 Natura American depositary receipts, or ADR. As an ADR represents 2 Natura shares, each Avon share will be equivalent to 0.6 Natura stock.
FOOD AND STAPLES RETAILING
* Dutch grocer Koninklijke Ahold Delhaize NV launched its AI for Retail Lab in Delft, Netherlands, which will have a robotics research program and test site for innovations in retail. The facility was developed in partnership with the TU Delft Robotics Institute.
* Japanese convenience store operator Lawson Inc. raised its profit and revenue forecast for the first six months of fiscal 2019, citing favorable performance of consolidated subsidiaries and costs from store closures that will instead be realized in the second half. The Japanese convenience store chain said it now expects profit attributable to owners of the parent of ¥20.10 billion, or ¥200.87 per share, from the previous guidance of ¥15.50 billion, or ¥154.90 per share, while revenue will total ¥369.10 billion.
* U.K. grocer Tesco PLC is hiring 9,000 seasonal workers to help in its operations during the Christmas period, the Mirror reported.
HYPERMARKETS AND SUPERCENTERS
* Walmart Inc. will sell its women's apparel and accessories brand ModCloth to Go Global Retail, a consumer sector-focused investment platform. Financial terms of the sale, which is expected to close later in 2019, were not disclosed. Go Global Retail said it will invest in ModCloth's digital capabilities including artificial intelligence and predictive analytics.
HOUSEHOLD DURABLES AND SPECIALTY RETAIL
* British retailer Sports Direct International PLC is either not paying rent or is working on ending the leases on most of the remaining House of Fraser stores, The Telegraph reported. Sports Direct said in an emailed statement to S&P Global Market Intelligence that The Telegraph article was referring to surrenders between landlords and the old House of Fraser, adding that the company has entered into new leases on a majority of its stores. "As a result of this erroneous misreading of the administrators report from EY, staff across the [House of Fraser] group have today woken up to a false sense of job insecurity," the company spokesperson also said.
* U.S. home improvement retailer Harbor Freight Tools USA Inc. recalled about 1.1 million Gordon brand folding knives due to a faulty locking mechanism that can fail to engage on extension of the blade, posing a laceration risk.
HOTELS, RESORTS AND CRUISE LINES
* The U.K. Civil Aviation Authority completed its plan to bring back more than 140,000 customers of the collapsed travel company Thomas Cook Group PLC. The British statutory corporation said it also launched its online claims system, which was previously expected to be launched on Sept. 30.
* SoftBank Group Corp.-backed Oyo Hotels & Homes said it will raise $1.5 billion in a new funding round led by founder and CEO Ritesh Agarwal and other investors, Reuters reported. Agarwal will inject $700 million in the Indian hospitality startup through his company RA Hospitality Holdings, with the remaining $800 million coming from other existing investors.
LEISURE PRODUCTS AND FACILITIES
* Italian toymaker and distributor Giochi Preziosi SpA is planning to launch an IPO in Milan in the first half of 2020, Reuters reported, citing two sources close to the matter. Giochi Preziosi, which is controlled by Italian entrepreneur and Genoa football club owner Enrico Preziosi, is now working on the planned float after postponing it earlier this year.
SPECIALIZED CONSUMER SERVICES
* The U.K.'s Franchise Brands PLC acquired holding company WPL Group Holdings Ltd., which owns wastewater solutions providers Willow Pumps Ltd. and Willow Drainage Ltd. The offer includes an initial consideration of £5 million and a performance-based deferred consideration of up to £7.5 million payable over the next five years.
The day ahead
Early morning futures indicators pointed to a lower opening for the U.S. market.
In Asia, the Nikkei 225 was down 0.16% to 21,375.25.
In Europe, around midday, the FTSE 100 was up 0.39% to 7,183.19, and the Euronext 100 rose 0.45% to 1,069.87.
On the macro front
The TD Ameritrade IMX report and the Consumer Credit report are due out today.
Click here to read about today's financial markets, setting out the factors driving stocks, bonds and currencies around the world ahead of the New York open.
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