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Havens-Hasty: Prospects Are Good For WhiteWave-Danone (Audio) · Bloomberg Intelligence

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  Speaker 1: Broadcasting live to New York, Bloomberg eleventh, Ryo to Washington,
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  Speaker 1: d C, Bloomber to Boston, Bloomberg twelve, UNDI to San Francisco,
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  Speaker 1: Bloomberg to the Country series XAM doanal one and around
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  Speaker 1: the globe the Bloomberg Radio plus Appen Bloomberg got gone.
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  Speaker 1: This is taking stock French yogurt maker down, grappling with
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  Speaker 1: a drop in dairy consumption around the world, taking a
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  Speaker 1: big step into soy milk, protein shakes, kale and the
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  Speaker 1: kicks starting growth. Will it work? We're going to take
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  Speaker 1: a look at dons takeover of White Wave PIM. Yes,
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  Speaker 1: White Wave Foods have formerly a subsidiary of Dean Foods
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  Speaker 1: that was spun off in initial public offering in August
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  Speaker 1: of twelve and today dan On and just say making
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  Speaker 1: a ten billion dollar bid for White Wave Foods. Right now,
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  Speaker 1: let's go to Charlie pellan In and I thank you PIM.
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  Speaker 1: Thank you, Kathleen, she mentioned to the White Wave shares
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  Speaker 1: there surging eighteen point five percent of eight seventy eight
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  Speaker 1: Right now, fifty six twenty one ticker w w a
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  Speaker 1: V stocks are lower, halting an advance in global equities
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  Speaker 1: crewed down around forty five dollars of barrow right now
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  Speaker 1: West Texas Intermediate forty five seventeen. It is lower by
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  Speaker 1: four point eight percent. Brent crewed also lower by four
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  Speaker 1: point eight percent. Treasury is falling with gold amid easing
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  Speaker 1: demand for haven assets before tomorrow's payrolls report. Right now,
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  Speaker 1: we've got the tenure down five thirty seconds. Deal there
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  Speaker 1: one point three eight percent, Gold down five forty bounced.
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  Speaker 1: It is down four tenths of one percent the thirteen
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  Speaker 1: sixty one. Tony Quisenzi is portfolio manager at Pimco. He
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  Speaker 1: spoke with Bloomberg Television this morning about Friday's jobs report
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  Speaker 1: tomorrow and the job for the wage take here, it's expected,
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  Speaker 1: carrencent the Bloomberg consensus to move to two point seven
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  Speaker 1: percent year for here from two point five, which would
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  Speaker 1: mark the highest rate since the two thousand nine, the
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  Speaker 1: highest of the ex mention. That would be an indication
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  Speaker 1: then that the labor market is getting tighter, that resource
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  Speaker 1: utilization is moving up, the inflation eventually will move up
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  Speaker 1: towards the FEZ two objective, and so to pay attention
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  Speaker 1: to that. Yes, it is Thursday, but we did get
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  Speaker 1: the ADP report today because of the holiday, ADP says
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  Speaker 1: companies in June kept adding workers to US payrolls, private
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  Speaker 1: payrolls climbing by a hundred and seventy two thousand last week.
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  Speaker 1: Last month, I should say last week, the Labor Department
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  Speaker 1: said claims dropped by sixteen thousand to two hundred fifty
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  Speaker 1: four thousand, SMP down four to two thousand, ninety five,
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  Speaker 1: a drop of two tenths of one percent. And now
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  Speaker 1: let's take a look at other news from around the world.
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  Speaker 1: Thank you, Charlie from the Bloomberg News room. I'm Jill Schneider.
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  Speaker 1: The New York Times is reporting that Senator Bernie Sanders
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  Speaker 1: is expected to endorse Hillary Clinton on Tuesday. That is
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  Speaker 1: according to three party sources. FBI Director James Comey has
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  Speaker 1: been in the hot seat today answering questions about the
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  Speaker 1: investigation into Hillary Clinton's use of a private email server
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  Speaker 1: and why he recommended no charges be filed. Comey denies
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  Speaker 1: there was any bias behind the decision. Are folks did
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  Speaker 1: it in a political and professional way, including our recommendation
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  Speaker 1: as to the appropriate resolution of this case. Comey says
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  Speaker 1: he found no evidence that Clinton knew that anything she
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  Speaker 1: was doing was against the law. How Speaker Paul Ryan
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  Speaker 1: is offering praise to Donald Trump after the likely GOP
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  Speaker 1: presidential nominee met with more than two hundred House Republicans
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  Speaker 1: this morning. What I thought was especially helpful today was
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  Speaker 1: our members just got access and got to ask questions
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  Speaker 1: and and and and talk about their their issues. So
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  Speaker 1: I thought it was very good meeting. Today's meeting was
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  Speaker 1: Trump's first sit down with the full House Republican Conference.
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  Speaker 1: Today's meeting was Trump's first sit down with the full
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  Speaker 1: House Republican Conference. Texas Republican Senator John Cornyn said they
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  Speaker 1: had a good exchange and that his colleagues were candid
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  Speaker 1: with Trump about their concerns about his tone and style.
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  Speaker 1: Food prices around the world rose in June by the
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  Speaker 1: most in almost four years. The United Nations food price
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  Speaker 1: and was up more than four The law firm representing
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  Speaker 1: Chris Christie's office in the George Washington Bridge Lane closing
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  Speaker 1: case wants to shut down requests by defense attorneys to
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  Speaker 1: examine personal items belonging to the Republican New Jersey governor,
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  Speaker 1: including his cell phone. Bill Baroni and Bridget Kelly claim,
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  Speaker 1: a former aid exchanged text messages with the governor during
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  Speaker 1: testimony by Bridge officials. Global News twenty four hours a day,
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  Speaker 1: powered by more than journalists and analysts in more than
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  Speaker 1: one countries. From the Bloomberg Newsroom. I'm Jill Schneider, Charlie,
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  Speaker 1: and we thank you, and again recapping S and P
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  Speaker 1: five hundred index down three to two thousand, a drop
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  Speaker 1: of two tenths of one. I'm Charlie Pellett. That's a
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  Speaker 1: Bloomberg business flash. This is taking stock with Pim's box
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  Speaker 1: and Kathleen waves on Bloomberg Radio at ten billion dollar
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  Speaker 1: deal for French yogurt maker done known. Will it be
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  Speaker 1: worth it? As it purchases white Wave foods, helping it
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  Speaker 1: go from yogurt to products that maybe are a little
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  Speaker 1: more popular in a world where many people are turning
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  Speaker 1: from dairy products towards soy milk, protein shakes and other
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  Speaker 1: kinds of foods. Joining us now as Nancy Haven's Hasty.
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  Speaker 1: She's president and chief investment officer at Haven's Advisors here
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  Speaker 1: in New York City. Nancy, welcome to the show. Thank you, Kathleen,
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  Speaker 1: So this deal does it make sense? Were you surprised
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  Speaker 1: to see you do you say, of course, Well, I
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  Speaker 1: think UM white Wave has been a takeover target ever
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  Speaker 1: since it was spun off from Dean Food, so it's
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  Speaker 1: not totally surprising that this deal was announced for don Own,
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  Speaker 1: which has quite a large UM exposure to the dairy market.
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  Speaker 1: This plant based food company UM and organic food company
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  Speaker 1: is a bit of a hedge to its business where
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  Speaker 1: people are moving away from dairy and towards plant based
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  Speaker 1: and organic foods. It's also UM the most rapidly growing
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  Speaker 1: area of the food business, so for a lot of
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  Speaker 1: reasons it makes sense for then Own. Nancy, explain a
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  Speaker 1: little bit about Haven's advisors and your expertise when it
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  Speaker 1: comes to mergers and acquisitions. UM. Okay, we do merger
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  Speaker 1: arbitrage and we are an event based UM investment manager,
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  Speaker 1: and I have been doing this for a little over
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  Speaker 1: twenty years UM in this format and before that UM
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  Speaker 1: we've been doing it elsewhere had other brokerage firms. So
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  Speaker 1: we explain to our listeners and an events based manager
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  Speaker 1: what exactly that means and how are you different from others? Well,
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  Speaker 1: event may event based investment managing UH is basically investing
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  Speaker 1: in UH situations where there is a specific event that
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  Speaker 1: will result in a change in value for a security.
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  Speaker 1: You have to hop in before it happens, or is
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  Speaker 1: it more hopping on board once it is then Yes,
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  Speaker 1: this makes sense. I see a lot of value potential
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  Speaker 1: gains from my clients. Okay, well we are basically murder
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  Speaker 1: of tasers merger are people generally get in after the
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  Speaker 1: announcement is made, after the announcement of a deal or
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  Speaker 1: an event is made, but before it's consummated. Right, You're
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  Speaker 1: not trying to sort of divine where the next acquisition
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  Speaker 1: is going to be. But having said that, Nancy, you
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  Speaker 1: mentioned an interesting point about the growing business for organic food.
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  Speaker 1: In the White Wave acquired earth Bound Farms, that was
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  Speaker 1: the that's America's largest grower of organic produce. Back in
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  Speaker 1: the price tag there was six hundred million dollars. Do
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  Speaker 1: you expect multiples for these kinds of food companies to
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  Speaker 1: increase as a result of this deal? Um? I don't
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  Speaker 1: know that this deal is going to be done at
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  Speaker 1: twenty four times trailing um uh ibada, twenty one times
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  Speaker 1: uh two thousands sixteen ibada, and fourteen times two thousand
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  Speaker 1: and sixteen after synergies. Those are all relatively healthy multiples,
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  Speaker 1: but they're not outrageous, and multiples vary with the size
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  Speaker 1: of the company. UM. A ten billion dollar company is
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  Speaker 1: sort of a medium to large merger, and multiples tend
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  Speaker 1: to tend to get lower as the deals get bigger,
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  Speaker 1: whereas they get higher with smaller deals. So I think
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  Speaker 1: UM I don't really anticipate that multiples will change in
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  Speaker 1: this area, but it is unquestionably an attractive area in
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  Speaker 1: which to invest. Our Bloomer News story focuses on UM
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  Speaker 1: down Own's chief Emmanuel Favor that it's his it's his
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  Speaker 1: first big move. You know, he spent the first year
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  Speaker 1: trying to revive sluggish sales and to know core European
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  Speaker 1: dairy segment. As you assess a deal like this, how
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  Speaker 1: much weight do you put on White Wave in this
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  Speaker 1: and the products and how they round out their portfolio?
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  Speaker 1: How much do you put on management and a leader
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  Speaker 1: like him? Well, UM management is extremely crucial to getting
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  Speaker 1: a deal like this done. UM always getting managements to
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  Speaker 1: agree and be on the same page UM determines the
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  Speaker 1: success or failure of a management. These companies certainly mentioned
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  Speaker 1: that their cultures were similar, that they were both trying
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  Speaker 1: to achieve the same thing. They're both trying to achieve
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  Speaker 1: healthy based eating UH in In France at Dono they
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  Speaker 1: call it alimentation. Here's they call it food and drink UM.
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  Speaker 1: But they're both attempting to be in exactly the same
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  Speaker 1: business and have similar corporate cultures. So I think that
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  Speaker 1: the prospects are probably pretty good for this merger. Nancy,
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  Speaker 1: just a little bit more on the general market for
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  Speaker 1: mergers and acquisitions are do you expect to see many
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  Speaker 1: more blockbuster deals? Do you expect for example, this deal
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  Speaker 1: Mandalise and the Hershey Company to Progress Mandels and her
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  Speaker 1: She is really quite a different situation. As you know her.
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  Speaker 1: She has been did for in the past and has
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  Speaker 1: never actually ended up getting acquired her. She has a
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  Speaker 1: trust that UM controls the voting power of Hershey, and
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  Speaker 1: UM the state of Pennsylvania has something to do with
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  Speaker 1: that trust and control of that trust, and they have
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  Speaker 1: more than once decided that the employment and the presence
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  Speaker 1: of Hershey in the state of Pennsylvania was more important
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  Speaker 1: than uh a higher premium for the trust shares. Thank
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  Speaker 1: you very much, Nancy Haven's Hasty the President, Chief Investment Officer.
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  Speaker 1: Haven's advisors This is Bloomberg. The minutes of the fed's
• 11:02
  Speaker 1: meeting in June release Yesterday's show. A group of policymakers
• 11:06
  Speaker 1: debating just what's going on in the labor market. Russ
• 11:09
  Speaker 1: Kestridge coming up from Black Raw to talk about what
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  Speaker 1: this means for equities.