F&N

F&N: +4.7% at $7.96, while APB is +16.4% at S$48.90, just below Heineken's $50/share bid for F&N's APB stake, likely indicating confidence the offer will proceed. However, Nomura raises some red flags. Heineken's offer is likely to be put to a shareholder vote as the stake in APB forms a large part of F&N's earnings and value. It notes Thai Beverage could block it as APB was the reason for acquiring a 22% F&N stake, and it won't significantly benefit as it paid $8.88/share. House add that the attractiveness of F&N as an F&B company will be reduced since it would be seen more as a property company unless it's able to significantly grow the F&B business via M&A;" it notes F&B M&A opportunities are slim. If the bid is accepted, a special dividend could be paid, it says. Nomura raises F&N's target to $9.16 from $8.80, to be reviewed if Heineken's bid is rejected; it keeps a Neutral call.