Business News & Financial News

Pflimlin Etienne, President of the Mutual Credit, announced Monday he was resigning his post at the head of the French mutual bank.

"I decided, for personal reasons, to end my functions as president of the National Confederation of Credit Mutuel, and the Federation of Credit Mutuel Centre Est Europe," he wrote in a statement released to the press by Credit Mutuel.

The banking group, in its statement, said that Michael Lucas, the current CEO of the Credit Mutuel will replace Stephen Pflimlin as President from October 14.

Previously, a source close to the group's management confirmed to Reuters that information revealed by the newspaper Les Echos.

"Yes, there is a press release that starts tonight at 18 hours, but I think I'll try to move forward," said the source had told Reuters.

Safran will decide in the coming days to make a bid on Zodiac and, where appropriate, offer a significant premium to shareholders of the aerospace supplier, said Monday the Tribune, citing inside sources.

No hostile bid will be made, the newspaper said, while the offensive Saffron comes a month after an initial rejection of the leaders of the Zodiac.

"Considering that we have more than one in two chance, we'll go, if it has less than one in two chance, wait. This folder will always feel in six months a year," told the newspaper an internal source of saffron.

A spokesman declined to comment Safran information immediately.A spokesman declined to comment Zodiac.

Around 11:25, the action was progressing Zodiac 13.01% to 49 euros on the Paris Stock Exchange after reaching a high of 53.4 euros earlier in the morning.At the same time, Saffron retreated 1.66% to 19.01 euros.

Saffron is able to offer a premium of 30-40% compared to the current course, says the Tribune, the equivalent of the highest historic title in 2007, to 58 euros.

Safran is ready to bring the family shareholders of Zodiac in its capital, the newspaper said, which would dilute the share of the state, now a shareholder group to 30%.

Citing "multiple sources," the newspaper wrote that the family Domange shareholder Zodiac up 9.28%, is not ready to sell, unlike the Peugeot family (5% of capital) who would be willing to cede Units.

Safran will do this for an offer to allow shareholders to retain the family tax benefit they have obtained by signing a pact Dutreil "six years ago and through which they receive a tax exemption on capital of 75%.

In prior postings to the families, Safran said his project is an acquisition of Zodiac, but that it could be achieved by exchange of securities and merger in order to preserve the fiscal pact, The Tribune wrote.

In attempting to seize the biotech Genzyme, Sanofi-Aventis hopes to enter a segment long ignored by major pharmaceutical companies, one of rare diseases.

It would appear that the giants of the industry think that investing in this field can be a good way to increase margins, complete the range of products and at least partially offset the impact of competition from generic.

Pfizer and GlaxoSmithKline have already tried the adventure but the offer from Sanofi on Genzyme – which could turn around 14.3 billion euros – would be by far the most advanced.

Genzyme is the world leader in treatments for rare diseases.He realized in 2009 a turnover of around 4.5 billion dollars from drug dealing rare inherited disorders such as Gaucher and Fabry disease.

"Genzyme has demonstrated to all that the market for rare diseases can be quite profitable," said Gary Pisano, a professor at Harvard Business School and a specialist in biotechnology.

These drugs for rare diseases, so-called "orphan" can reach astronomical prices and yet are rarely rejected by insurance companies.Cerezyme, blockbuster treating Gaucher disease developed by Genzyme, is an annual treatment cost of over $ 200,000.

This is one of the drugs most expensive in the world and represented the last year a turnover of 1.2 billion dollars.

NEW PERSPECTIVES

They are new opportunities opening up for big pharmaceutical companies that are themselves, most often, little to offer in terms of experimental medicines.

"The era of 'blockbuster' seems gone," says Kevin Gorman (Putnam Associates). "In rare diseases needs to look far the greatest."

Gaucher disease and Fabry disease are characterized by an enzyme deficiency that can cause irreparable damage or even lethal to the organs.Treating such diseases is not accessible to all laboratories and even the big pharmaceutical companies are not equipped to start from scratch in this field.

Design in this field of rare diseases, clinical trials, control of complex manufacturing processes and finally market drugs in highly targeted markets, this requires a special skill mastery that Genzyme to perfection.

Yet, one case of infection occurred at the site last year Genzyme Allston Landing in Boston, led to a shortage of two key drugs and led to a sharp drop in results and a diving action.

Sanofi hopes to capitalize on woes Genzyme to buy cheap.It offers 69 dollars per share, according to sources familiar with the matter, much less than the $ 80 where work is changing before disorders occur manufacturing end of 2008.

According to sources, it is unlikely that Genzyme accepts less than 80 dollars per share. This can be explained by the fact that Genzyme is an asset as rare as the diseases it treats.

It is not likely to be subject to generic competition soon.It has also more than 20 years of experience in the relationship with patient groups in the organization of clinical trials and reimbursement management and regulatory issues.

NOT EASY TO COPY

"The reasons why large groups are eyeing this segment reduced threat of generic products, products that can be expanded to other areas and prices," said Dominic Valder, an analyst at Evolution Securities.

Traditionally, the big pharmaceutical companies focus on drugs prescribed by GPs in a large population of patients with chronic conditions like diabetes, depression, ulcers or cholesterol is too high.

These medicines are made from molecules that can easily replicate génériquiers.

The biotech drugs are on the contrary from protein complex. They are prescribed by specialists for patients in small numbers. They are not easy to copy.

Some heavyweights pharmacy try their luck but so timidly.For Patrick Vallance, head of research at Glaxo, the strategy aims to improve the returns to research and development focusing on areas where the probability of success are greatest.

Glaxo has taken a stake in the Japanese and JCR Pharmaceuticals has entered into an alliance with privately held Prosensa, leading to the launch of a Phase III clinical trial in the second half and bearing on Duchenne muscular dystrophy.

Pfizer has acquired worldwide rights to an experimental treatment for Gaucher disease developed by Protalix BioTherapeutics, which if approved, would compete with Genzyme's Cerezyme.

The International Monetary Fund forecasts growth of 1.4% in France this year, as the government, but is more cautious thereafter, and questions whether the government deficit back below 3% of GDP before 2015.

In its annual report on France on Friday, the IMF welcomed the "ambitious reform program" implemented by the authorities, welcomed the "major reform" of pensions and notes that French banks are strong, as the Recent tests have shown the organized resistance in the European Union.

But he stressed the risks to future growth, although France has fared better than its neighbors to the recession, and recommends giving priority to a "substantial and credible rebalancing" of public finances.

After a contraction of 2.5% in 2009, the institution sees gross domestic product of France grow 1.4% this year – the same prediction that the government – and by 1.6% in 2011, 1.8 % in 2012 and 2.0% in 2013.

These estimates are similar to those published in the April World Economic Outlook of the IMF, while those on the deficit is more optimistic.

After 7.5% in 2009 and 8.0% in 2010 (again forecasting government), the deficit would decrease to 6.1% of GDP in 2011.In April the IMF was around 7%.

"This is the result of a conference on fiscal deficits in July and pension reform in June," Harris says one in Bercy where we judge the IMF and Paris "on the same wavelength" .

"It's a good report of the IMF for economic policy the government," says one.

IMF WANTS THE ASSUMPTIONS OF "REALISTIC"

However, the IMF is the deficit to 3.9% of GDP in 2013 and, according to his script, is that in 2015 he would return below the 3% limit set by the Maastricht Treaty.

The stability program of France plans to achieve the 3% deficit in 2013, subject to a growth of 2.5% from next year.

"To make the effort of more credible, it is important to establish the framework for budgetary planning on realistic macroeconomic assumptions," the IMF in his notes, echoing criticism by the European Commission issued in March when he was sent to the stability program.

During a conference call, one of the reviewers, Erik de Vrij, however relativized this message indicating that the deficit target reduced to 3% in 2013 could be achieved if the pension reform is completed.

"By including the pension reform, there is a good chance of reaching 3% deficit by 2013," he said.

Published annually after the visit of a mission, the IMF notes is rather complimentary to the government's economic policy but calls for greater efforts on reforms and fiscal consolidation.

"A fragile recovery is underway in France," it said.

Her limited exposure to international trade, the existence of a strong enough financial sector, the importance of social safety nets and measures to relaunch "well designed" have enabled France to resist the global crisis that most comparable countries, the IMF noted.

But, he adds, 'the characteristics of the French economy, which have protected partly during the recession are also those who probably will slow the recovery.

"PUSHED MORE INITIATIVES"

The unemployment rate of 9.5% in 2009 to reach 10.0% on average this year and peaking at 10.1% in 2011, before easing to 9.7% in 2012 and 9.2% in 2013 according to the IMF.

At the same time, public debt would reach 84.3 in 2010% of GDP against 78.1% in 2009 and would continue to deteriorate until 2013, when this ratio reach 90.3%.

"The imminent consolidation of public finances in France and most European countries will weigh on demand, and concerns that continue to generate sovereign risk require continued vigilance," said the Fund, requesting the authorities to "implement with their energy reform program to support the recovery. "

On the fiscal consolidation policy, the IMF considers that the measures already announced on revenues and expenditures are "large" but said that "further efforts are needed at all levels of government to achieve fiscal consolidation is the medium term ".

The institution also delivers a good report on the reform of banking regulation, acknowledging in particular the establishment of the supervisory authority which has for the month of March all supervisors and approval of the bank and insurance in France.

Lafarge said it had completed the sale of 11.2% of its business in Malaysia under the divestment program initiated by the world's number one cement.

The sale of this portion of Lafarge Cement Berhad, Malaysian (LMCB), the French giant holds indirectly through two subsidiaries, for a net amount of 141 million euros, Lafarge said in a statement.

Following this, the group will remain the principal shareholder of LMCB with a 51%, against 62.2% so far, and will retain management of the business.

Lafarge in May confirmed its target of selling 300 to 500 million euros of non-strategic assets throughout 2010.

In 2009, he has conducted more than 900 million euros from divestments as part of a package of measures to strengthen the company's financial response to the crisis, including reducing debt inflated between late 2007 and in late 2008 by acquiring the Egyptian Orascom.

Bourbon has unveiled a new plan for the period 2011-2015 which includes the sale of its fleet of 16 bulk carriers and other non-core assets for a total of 500 million Euros.

The specialist maritime services to the offshore oil announced in a press release that it has signed an agreement to sell its Bulk with the American Genco Shipping & Trading Ltd for 545 million dollars (440 million euros).

As part of its strategic plan, Bourbon also wishes to invest two billion dollars (1.62 billion euros) in the construction of 80 supply vessels and 64 vessels transporting personnel to operate in 2015 a fleet 600 vessels dedicated logistics services in the continental offshore and deep offshore.

The offshore fleet amounted to 357 ships by end of 2009 and 99 are now in command in the context of its previous strategic plan.

"The bulk current activity will continue to a lesser extent and without the contribution of a fleet that is owned," said the CEO of Bourbon, Jacques de Chateauvieux, during a conference call."This is not disturbed our ability to meet the expectations of our customers."

Jacques de Chateauvieux has also indicated that the sugar activities of Bourbon in Vietnam, among other things, would be sold in addition to bulk carriers.

Apart from sales, financing the new investment program will be provided by changing the payment terms of vessels during construction, 75% of the price now being paid on delivery, as well as a 12-year loan of 400 million dollars granted by the China Exim Bank.

CASH FLOWS FROM POSITIVE in 2013

"The combined effect of generating cash flow from operations, disposal of assets in 2010 and the new payment policy should allow vessels a ratio of debt to equity of less than 0.5 and a ratio net debt / EBITDA of less than 2 by 2015.Bourbon and generate positive cash flow from 2013 onwards, "added the company.

Bourbon also said that its dividend policy would be to distribute approximately 40% of its consolidated net income.

After an average growth of 28% of the activity of its offshore division between 2002 and 2009, the new plan Bourbon displays a target of 17% average annual growth between 2011 and 2015.

The company is also concentrating on increasing the availability rate of the fleet with a goal of 95% against 92% today, and a decline in the index of its operational costs by 4% rate constant 2015.

Bourbon is also a ratio for 2015 gross operating profit (EBITDA) on revenues of 45% for offshore and an EBITDA ratio on capital employed of 20%.

It plans to recruit 5,000 people who join its 7,000 employees.