TOP NEWS
* William Ackman's Pershing Square Capital Management LP has taken out an approximately $1 billion stake in home improvement retailer Lowe's Cos. Inc., a source familiar with the investor's strategy told S&P Global Market Intelligence. The source declined to comment on the stance Ackman will take toward Lowe's and incoming CEO Marvin Ellison, the executive who is currently CEO of department store chain J.C. Penney Co. Inc.
* Shareholders of Westfield Corp. approved Unibail-Rodamco SE's US$15.68 billion proposal to take over the Australia-listed shopping center landlord in what could potentially be the biggest ever merger and acquisition Down Under. Approximately 97.55%, or 1,456,822,657, of the votes cast at the May 24 annual general meeting were in favor of the scheme proposal that implies a total enterprise value of US$24.7 billion for the target.
TEXTILES, APPAREL AND LUXURY GOODS
* Carven SAS requested the Paris commercial court to appoint a receiver for the French apparel retailer as it filed for bankruptcy protection, putting 100 jobs at risk, Reuters reported, citing a company spokesman. Under receivership procedures, the appointed receiver will manage Carven SAS or sell its assets for the benefit of its secured creditors.
* LVMH Moët Hennessy Louis Vuitton SE led another round of financing for Lyst, enabling the U.K. fashion search platform to enhance data capabilities and invest in its consumer brand, Lyst said in a release sent to S&P Global Market Intelligence. As part of the luxury goods conglomerate's investment, LVMH Chief Digital Officer Ian Rogers will join the e-commerce firm's board of directors. Although Lyst agreed with LVMH not to disclose its investment size, a person familiar with the transaction told the Financial Times that the French company's financing was less than $60 million.
* L Brands Inc. lowered its EPS guidance for full year 2018 after recording a sharp drop in net income per diluted share for the first quarter ended May 5. The owner of the Victoria's Secret and Bath & Body Works brands now expects full-year 2018 EPS to come in the range of $2.70 to $3.00 compared with the prior guidance of $2.95 to $3.25.
* Destination Maternity Corp. said Holly N. Alden, Christopher B. Morgan, Marla A. Ryan and Anne-Charlotte Windal were elected to the maternity apparel retailer's board, replacing Barry Erdos, Peter Longo, Pierre-André Mestre and interim CEO Melissa Payner-Gregor. The newly elected directors were nominated by activist investors Nathan G. Miller and Peter O'Malley, who collectively own 9% of the company, after pushing for diversity in the company's board. Proxy advisory firms Institutional Shareholder Services Inc. and Glass Lewis & Co. LLC did not back the nominations.
MULTILINE RETAIL
* Mothercare PLC said it will "100% not" opt for a management buyout in the future, a source familiar with the matter told Reuters. The news follows a Bloomberg report that CEO Mark Newton-Jones, which the retailer of baby products and maternity clothes recently rehired, proposed to take Mothercare private before he left in April, aside from suggesting a management buyout to the company's board.
* Ryohin Keikaku Co. Ltd.-owned Japanese retailer Muji was fined 200,000 Chinese yuan for using packaging that identifies Taiwan as a country, Reuters reported, citing a statement from the Shanghai Administration for Industry and Commerce. Muji reportedly imported 119 clothes hangers from Japan in 2017 in packaging that labeled Taiwan as the "country of origin," underscoring China's growing sensitivity to how companies refer to the island.
HOUSEHOLD AND PERSONAL PRODUCTS
* Cosmetics company Revlon Inc. appointed Debra Perelman as its first female CEO, effective May 23. Perelman, a member of Revlon's board, joined the company after Fabian Garcia stepped down in January. Most recently, she was the company's COO.
FOOD AND STAPLES RETAILING
* Food retailer Kroger Co. will buy Illinois-based meal-kit delivery company Home Chef for $200 million and "future earnout payments" of up to $500 million over five years, contingent on achieving certain milestones. The acquisition, which is anticipated to close in the second quarter of 2018, subject to customary closing conditions and regulatory approval, is expected to boost Kroger's meal-kit business.
HYPERMARKETS AND SUPERCENTERS
* Australian retail conglomerate Wesfarmers Ltd. has received offers for its struggling British DIY chain Homebase Group Ltd. from three investment firms and could reach a decision in short order, Sky News reported, citing sources. Alteri Investors and Hilco Capital LP are the leading candidates to buy the chain, while Endless LLP has also reportedly sent a bid to Wesfarmers, which could receive at least £75 million for the chain.
HOUSEHOLD DURABLES AND SPECIALTY RETAIL
* China's QuMei Home Furnishings Group Co. Ltd. agreed to acquire Norway-based home furnishings retailer Ekornes ASA for 139 Norwegian kroner per share in a voluntary cash offer. The deal, which has been authorized in a pre-filing by China's National Development and Reform Commission, is expected to be approved by the Oslo Stock Exchange on or about June 1, after which the offer document will be sent to Ekornes shareholders.
* Kingfisher PLC said harsh weather conditions in Europe, coupled with temporary store closures in the U.K., impacted footfall in its stores in the first quarter ended April 30. The British retailer said sales for the period were £2.83 billion, down 1.2% year over year in reported figures, or 2.5% on constant-currency terms. Separately, Kingfisher said it plans to repurchase a maximum of £50 million worth of shares between May 24 and July 27 to reduce the company's share capital.
HOTELS, CASINOS AND GAMING
* Sports betting and gaming company Paddy Power Betfair PLC and New-York-based online fantasy sports firm FanDuel Inc. entered into a definitive agreement to merge their businesses in the U.S. Paddy Power will own 61% of the combined business, which will be its fully consolidated subsidiary, while FanDuel's existing investors will have 39% ownership. Under the agreement, the Irish bookmaker also has an option to increase its ownership in the merged entity to 80% after three years and 100% after five years.
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The day ahead
Early morning futures indicators pointed to a mixed opening for the U.S. market.
In Asia, the Nikkei 225 dropped 1.11% to 22,437.01, while the Hang Seng was up 0.31% to 30,760.41.
In Europe, around midday, the FTSE 100 slid 0.01% to 7,787.43, and the Euronext 100 rose 0.44% to 1,080.45.
On the macro front
The jobless claims report, the FHFA House Price index, the existing home sales report, the EIA natural gas report, the Kansas City Fed Manufacturing index, the Fed balance sheet and the money supply report are due out today.
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