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Top activist stories 1


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Top Activist Stories - A Review of Financial Activism by Geneva Partners

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Top activist stories 1

  1. 1. T O P A C T I V I S T S TO R I E S A REVIEW OF FINANCIAL ACTIVISM BY GENEVA PARTNERS December 10th,2012 PLEASE SCROLL DOWN FOR ARTICLESAdobe Systems Names ValueAct Capital’s Kelly Barlow to Board ADBE USAdobe Systems Inc. (ADBE), the largest maker of graphic design software, added Kelly Barlow, a partner atinvestor ValueAct Capital Partners LP, to its board, expanding the number of directors to 13 from 12. […]Icahn Ends Oshkosh Bid After Shareholder Support Falls Short OSK USBillionaire activist investor Carl Icahn dropped his bid to buy Oshkosh Corp. (OSK) after failing to receiveenough shareholder support. […]Canadian Pacific Surges on Ackman-Backed Plan for Rebound CP CNCanadian Pacific Railway Ltd. surged the most in six weeks after Chief Executive Officer Hunter Harrison said hewould cut jobs and study asset sales to boost profitability at North America’s least-efficient railroad. […]Netflix Gains Disney Streaming Rights in End Run on Cable NFLX USNetflix Inc. (NFLX), the online video service, signed a multiyear accord to carry Walt Disney Co. (DIS) films,marking the first time a major studio has bypassed traditional cable-TV outlets. […]Timken Owners Lose $1.3 Billion Without Spinoff TKR USTimken Co. (TKR), the bearings maker that trades at the lowest earnings multiple among its peers, is costingshareholders the chance to recoup $1.3 billion in market value lost this year by not spinning off its steel unit.Ralph Whitworth’s Relational Investors LLC, known for pushing for changes and board seats at companies fromHewlett-Packard Co. to Illinois Tool Works Inc., announced a 5.7% stake last week and said Timken’s valuewould jump to $64.98 a share by separating the bearings and steel units.[…] 1GENEVA PARTNERS – 33 Quai Wilson – 1201 Geneva – Switzerland – Tel. : +41/22 906 95 95 – –
  2. 2. T O P A C T I V I S T S TO R I E S A REVIEW OF FINANCIAL ACTIVISM BY GENEVA PARTNERS December 10th,2012 Adobe Systems Names ValueAct Capital’s Kelly Barlow to Board ADBE USBy Aaron Ricadela price. called his interactions with ValueActDecember 5th, 2012 Adobe, which makes print and Web “a very collaborative relationship” and design programs including Photoshop, declined to expand on any Adobe Systems Inc. Illustrator and Dreamweaver, is discussions.(ADBE), the largest maker of graphic undergoing a period of slow growth -- ValueAct and Adobe have agreed thatdesign software, added Kelly Barlow, sales are expected to expand 3% this Barlow or his replacement musta partner at investor ValueAct Capital year and next, according to the resign from the board if thePartners LP, to its board, expanding average of analysts’ estimates investment firm’s stake drops belowthe number of directors to 13 from compiled by Bloomberg. Its stock has 5%. ValueAct also agreed not to hold12. declined 19% over the past five years, more than 12% of Adobe.ValueAct, a San Francisco-based compared with a 13% gain in the Adobe shares rose less than 1% toinvestment firm with more than $8 Standard & Poor’s 500 Information close at $35.40 inNew York. Thebillion under management, has a 6.3% Technology Index during the same company is scheduled to report fiscalstake in the San Jose, California-based period. fourth-quarter earnings Dec. Adobe said in a filing that In an interview in April at an event toValueAct owned 31.3 million shares as release the company’s Creative Suiteof yesterday, which would be worth 6 package of design software, Chief$1.11 billion at today’s closing stock Executive Officer Shantanu Narayen Source : Bloomberg Icahn Ends Oshkosh Bid After Shareholder Support Falls Short OSK USBy Brendan McGarry extend the offer,” Icahn said in the nominees, including himself. He hasDecember 4th, 2012 statement. pushed for spinning off its JLG unit, Icahn’s offer to buy all outstanding which makes construction lift Billionaire activist shares of the Oshkosh, Wisconsin- equipment.investor Carl Icahn dropped his bid to based truckmaker at $32.50 a share, “I’m not surprised that Icahn hadbuy Oshkosh Corp. (OSK) after failing or about $3 billion, expired at difficulty getting the number of sharesto receive enough shareholder midnight yesterday. that he wanted to get to proceed withsupport. […] Oshkosh fell to as low as $28.41 and the proxy fight,” Walter Liptak, anIcahn, 76, the company’s largest traded at $28.63, down 4.9%, at 9:43 analyst at Barrington Researchshareholder with a 9.5% stake, had a.m. in New York. The stock is up 34% Associates Inc. in Chicago, said in asaid he would end his bid if fewer this year. Oshkosh is the U.S. telephone interview. Liptak has anthan a quarter of the company’s military’s largest supplier of medium- outperform rating on the company.outstanding shares were tendered by and heavy-duty trucks. “Oshkosh management presented athe deadline. About 22% of the shares John Daggett, a spokesman for really compelling earnings growthwere offered, according to a Oshkosh, didn’t immediately respond plan to shareholders,” he said. “Thestatement from Icahn Enterprises LP to a phone call seeking comment. trading today sets up a buying(IEP) today. Icahn has criticized Oshkosh’s opportunity in the stock.”Because he didn’t get the 25% of executives for poor performance. Heshares sought, “we are returning all was seeking to replace its 13-membertendered shares and we will not board of directors with his own Source : Bloomberg 2GENEVA PARTNERS – 33 Quai Wilson – 1201 Geneva – Switzerland – Tel. : +41/22 906 95 95 – –
  3. 3. Canadian Pacific Surges on Ackman-Backed Plan for Rebound CP CNBy Brooke Sutherland off a two-day presentation to according to data compiled byDecember 5th, 2012 investors and analysts. Bloomberg. “We need to get our house in order, Canadian Pacific get our costs under control and do a DM&E AssessmentRailway Ltd. surged the most in six lot of things,” he said in an interviewweeks after Chief Executive Officer today. As strategy changes take place in theHunter Harrison said he would cut While the carrier’s 74.1% third- next four years, the company’sjobs and study asset sales to boost quarter ratio was the lowest in two operating ratio may fall to as low asprofitability at North America’s least- years, Canadian Pacific was still the 63% or may come in closer to 67%efficient railroad. least efficient of the six major North depending on revenue growth,Canadian Pacific rose 4.1% to C$96.82 American railroads, according to data Harrison said yesterday. Offering aat the close in Toronto, the highest compiled by Bloomberg. range rather than a definitive targetsince the company was spun off from To achieve his goals, Harrison will “in no way is to try to indicate thatthe former Canadian Pacific Ltd. in eliminate 2,300 employee and we’re not confident about this2001. contractor jobs by the first quarter, number,” he said.Harrison plans to shrink the and 4,500 total by 2016. The company forecast annual revenuecompany’s workforce by 23% and will “You could see more reductions in the growth of 4% to 7% by 2016, a goodconsider selling a mid-western U.S. future,” Harrison said. “I’m not portion of which Harrison said wouldline gained in the 2007 acquisition of locking us into any place. We’re in a come from increasing shipments ofDakota, Minnesota & Eastern pretty good position where the crude oil.Railroad. The former head of demographics of what we describe as In addition to considering selling oneCanadian National Railway Co. (CNR) our natural attrition over the four of the U.S. lines from the DM&E deal,stepped into his current post in June years would be about 5,700 people.” Canadian Pacific plans to delayafter hedge-fund manager William indefinitely acting on an includedAckman won a proxy fight to oust ‘CP’s Turn’ option to expand into the Powderthen-CEO Fred Green. River Basin, the largest U.S. coal“If you’re a shareholder even since Canadian Pacific will also explore reserve. The entire $1.48 billionthe beginning of 2012, I think you’re options for its real estate holdings and acquisition was criticized earlier thisvery happy with what Ackman has relocate its downtown Calgary year by Ackman, who called it adone and what Hunter is doing,” Brian headquarters to offices at a local rail blunder.Yarbrough, an Edward Jones analyst, yard by 2014, according to a Whether DM&E was a goodsaid in a telephone interview. “He’s statement released before Harrison’s investment at the time or not, thegot the track record to do it and now speech yesterday. investment “has not played out likehe’s laying out his plans.” The railroad plans to introduce a new some would have liked, ”Harrison toldHarrison earned a reputation for sidings program that will allow it to investors and analysts today.operational efficiency at Illinois use fewer trains while maintaining or Interest has already been expressedCentral Corp. and then at Canadian even increasing volumes. in the line, which includes about 660National, the country’s biggest “It’s CP’s turn for the operating miles (1,060 kilometers) of track fromrailroad, before retiring in 2009. turnaround,” Steven Paget, a Calgary- Minnesota through South Dakota,Canadian Pacific’s shares have based analyst at FirstEnergy Capital Nebraska and Wyoming, Harrisonclimbed 32% from June 28, the day Corp., said in a phone interview. “It’s said. The company currently has nobefore his hiring was announced. CP’s time.” plans to divest other assets acquiredCanadian National rose 3.7% in that Paget has an outperform rating on through the DM&E transaction, hespan. Canadian Pacific, while Edward said. Jones’s Yarbrough, who is based in St. “Change is certainly in the air,” Walter Operating Efficiency Louis, has a buy recommendation. Spracklin, a Toronto-based analyst at Ackman pushed for Harrison’s hiring Royal Bank of Canada, wrote in a noteHarrison, 68, reaffirmed yesterday his as he sought to boost investor returns to clients today.pledge to lower Calgary-based at the 131-year-old company. HisCanadian Pacific’s operating ratio, a Pershing Square Capital Managementbenchmark industry measure of LP became the carrier’s largestexpenses to revenue, to about 65% in shareholder in 2011 and held a 14%four years. The CEO’s speech kicked stake at the end of the third quarter, Source : Bloomberg 3GENEVA PARTNERS – 33 Quai Wilson – 1201 Geneva – Switzerland – Tel. : +41/22 906 95 95 – –
  4. 4. Netflix Gains Disney Streaming Rights in End Run on Cable NFLX USBy Cliff Edwards and Christopher direct-to-video releases in 2013. The Children’s TalesPalmeri company doesn’t gain movies fromDecember 4th, 2012 “Star Wars” creator Lucasfilm Ltd., With a Disney catalog largely geared which Disney is buying for $4.05 to children and families, Netflix can Netflix Inc. (NFLX), billion and doesn’t yet own, according build a solid base of subscribers whothe online video service, signed a to Jonathan Friedland, a Netflix are less likely to cancel service formultiyear accord to carry Walt Disney spokesman. He declined to say competing offerings, said Scott Devitt,Co. (DIS)films, marking the first time a whether they would be included later. a Morgan Stanley analyst who has amajor studio has bypassed traditional For Netflix, with 30 million users buy rating on the shares.cable-TV outlets. The agreement worldwide, the Disney agreement “In a shrewd move by Netflix, thestarts with movies released in 2016, extends its lead over competing video company is focusing on building athe companies said today in a services from and highly differentiated content catalogstatement, without disclosing terms. Verizon Communications Inc. (VZ) and aimed at kids, which is a demographicNetflix will replace Liberty Media Coinstar Inc. (CSTR)’s Redbox Instant, that has relatively homogeneousCorp. (LMCA)’s Starz Entertainment which is set to begin public testing tastes,”Devitt wrote in a researchwhen its output deal with Disney this month. Netflix is adding exclusive note. While Netflix bolsters its filmexpires in 2015. Netflix surged the programs such as “Lilyhammer” lineup, the announcement doesn’tmost since January while Liberty Class and“House of Cards” as it seeks settle a tug-of-war among investorsA tumbled. The deal is a coup for earlier and fuller home-video access over the company’s prospects, saidNetflix Chief Executive Officer Reed to studio movies for its customers. Arvind Bhatia, a Sterne Agee & LeachHastings, who faces emerging “This is a big win for Netflix,” Jaison analyst who has a neutral rating oncompetition in online video and Blair, an analyst with Telsey Advisory the shares. With about $4.5 billion inpressure for a sale of the company Group in New York, said in a streaming content obligations duefrom activist investor Carl Icahn. U.S. telephone interview. before the Disney films are available,subscribers of Netflix will get access and the losses incurred as it expandsto movies from Disney, including its Movies’ Cost internationally, Netflix must increasePixar and Marvel releases, as soon as its subscriber count or raise its $7.99-seven months after they open in Netflix probably agreed to pay in a-month price for unlimited viewingtheaters, a time frame traditionally excess of $350 million a year for to remain viable long-term, Bhatiareserved for premium pay-TV Disney’s movies, estimates Tony said. “It’s a big get, but clearly therechannels like Starz. “It was a long slog, Wible, an analyst with Janney are several unknowns out there tobut ultimately we displayed enough Montgomery Scott in Philadelphia. determine if it’s a good get,” Bhatiasustainability that Netflix became a Disney embraced online media sooner said.“Though we don’t know thereal and viable option for the pay-TV than its competitors, becoming the financial terms, it’s clear this was notwindow,” Ted Sarandos, the video first major studio to sell and rent TV a cheap deal.” Netflix expectsservice’s chief content officer, said in shows and movies through Apple Inc. billionaire Icahn, who controls almostan interview. Netflix, based in Los (AAPL)’s iTunes. The company’s 10% of the company through stockGatos, California, surged 14% to largest shareholder is the trust of late and options, to start a proxy battle as$86.65 at the close in New York, more Apple co-founder Steve Jobs. Netflix he seeks a sale, Hastings said lastthan doubling its year-to-date gain. beat out several bidders for the month. In 2010, Disney extended itsLiberty Media, based in Englewood, Disney pictures, Sarandos said, digital distribution deal with StarzColorado, slid 4.9%, the most since without identifying them. The through 2015. Today’s agreement willMay 17, to $105.56. Disney, the company will bid aggressively for replace that pact when the latterworld’s biggest entertainment exclusive rights to Sony Corp. (6758) expires. Courtnee Ulrich,company, was little changed at films when that studio’s contract with spokeswoman for Englewood,$49.30. Starz ends around 2016, he said. Colorado-based Liberty Media, didn’t Paula Askanas, a Sony spokeswoman, return a phone call seeking comment. Seeking Sony said the company had no comment on Sarandos’s remarks. DreamWorksThe Disney accord separately gives Animation SKG Inc. (DWA), which putsNetflix immediate access to older out two to three films a year, also hasclassics such as “Dumbo,” and new an agreement with Netflix. Source : Bloomberg 4GENEVA PARTNERS – 33 Quai Wilson – 1201 Geneva – Switzerland – Tel. : +41/22 906 95 95 – –
  5. 5. Timken Owners Lose $1.3 Billion Without Spinoff TKR USBy Lindsey Rupp and Tara Lachapelle steel operations. we’ve seen from analysts, indicatingDecember 4th, 2012 values from $55 to $65-plus per Chassis, Engines share,” Whitworth said during a Timken Co. (TKR), phone interview yesterday.“ Thisthe bearings maker that trades at the The company, founded in 1899 by discount will persist through all cycleslowest earnings multiple among its Henry Timken, produces anti-friction and conditions due to thepeers, is costing shareholders the bearings and power-transmission incongruous nature of these twochance to recoup $1.3 billion in components, in addition to running businesses,” he said. “Waiting is notmarket value lost this year by not the business Relational wants the answer. The costs to shareholdersspinning off its steel unit. jettisoned, which produces alloy steel of a suboptimal structure compoundRalph Whitworth’s Relational used in vehicle chassis and engines as over time.”Investors LLC, known for pushing for well as steel forging bars andchanges and board seats at seamless tubes for oil and gas drill Relational’s Recordcompanies from Hewlett-Packard Co. bits. The company runs 58to Illinois Tool Works Inc., announced manufacturing facilities and has Ricardo Duran, a spokesman fora 5.7% stake last week and said operations in 30 countries and Sacramento, California-based Calstrs,Timken’s value would jump to $64.98 territories, according to Timken’s declined to comment beyond lasta share by separating the bearings annual report from February. “We week’s filing. Relational, based in Sanand steel units. have significant technology, cost and Diego, has proven to be a catalyst forThe plan was revealed after the revenue synergies between our change in the past.Canton, Ohio-based company, which bearing and steel businesses as well Illinois Tool Works agreed in August toclosed yesterday at $45.12, fell 28% as diversification benefits in sell a majority stake in its decorativefrom its April high. continuing to operate under our surfaces division to Clayton, DubilierWhile Timken last week rejected a current structure,” Timken Chief & Rice LLC, following pressure frombreakup and said keeping the units Executive Officer James Griffith said in Relational to reduce the number ofcombined provides technology and a Nov. 28 statement. “These synergies business units.profit benefits, BB&T Corp. said it’s and benefits, coupled with a potential In November 2011, HP said it would“uncontroversial” that the company is reduction in financial flexibility, add Whitworth to its board to helpworth more in pieces after past among other factors, led the board to shore up investor confidence shakenattempts to eliminate the discount conclude that the separation of the by strategy shifts and lower salesfrom the steel business have failed. businesses at this time would not be forecasts. After retreating from an all-The $4.3 billion company would be in the best interests of Timken time high of $57.72 in April, when thevalued 33% more if split, according to shareholders.” shares had a market capitalization ofthe average of four analysts’ $5.6 billion, Timken yesterday had theestimates compiled by Bloomberg. ‘Suboptimal Structure’ lowest price-earnings ratio among theTimken’s price-earnings ratio of 8.6 is 12 companies it describes as its peerscheaper than every global competitor, Pat Carlson, a spokeswoman for in the steel industry and the bearingswith its valuation about 45% less than Timken, declined to comment further. and power-transmission group.the median, the data show. Timken Relational and California State Its 8.6 multiple to earnings compares“doesn’t get a proper valuation,” Teachers’ Retirement System with 16.6 at Carpenter TechnologySamuel Eisner, a New York-based announced their purchase of Timken Corp., 14.8 at SKF AB and 22 at Nucoranalyst with William Blair & Co., said shares in a Nov. 28 filing, with the Corp., data compiled by Bloombergin a telephone interview, adding that latter revealing a 0.4% stake. show. The group median is 15.7.a breakup may not be imminent Calstrs, as the second-biggest U.S.because of the relatively high pension is known, submitted a ‘Negligible’ Benefitownership among members of the proposal to be voted on at the nextfounding family and the company annual meeting that recommends In an August presentation to Timkenpension. “If you did have a chance to hiring an investment bank to spin off management, Relational describedspin it off, you might be able to the steel business into a separate Timken’s lower valuation asrevalue that business at a higher publicly traded entity. “There are a “significant, reflecting the market’smultiple,” he said, referring to the range of discounts out there that clear preference for pure-play …… 5GENEVA PARTNERS – 33 Quai Wilson – 1201 Geneva – Switzerland – Tel. : +41/22 906 95 95 – –
  6. 6. bearings or steel alternatives,” the last 12 months, data compiled by according to a March filing.according to the document, filed with Bloomberg show. The shares traded Participants in the Timken savings andthe Securities and Exchange for 12.2 times that amount yesterday, investment pension plan have 5.4%.Commission on Nov. 28. Relational lower than the 16.5 median among Businesses spun off from larger U.S.said the value created by keeping the peers, the data show. While Kang companies are beating the rest of thebusinesses together are “negligible agrees with Relational that Timken stock market this year. Thewhen compared to the market would be valued at about $65 a share Bloomberg U.S. Spin-Off Index of 20discount.” “We agree that the market if split, he said the stock may climb to stocks has surged 41% in 2012, versusis unlikely to properly reward either that level on its own in the next year a 12% gain in the Standard & Poor’sthe steel or the bearing business for or two. 500 Index.the secular improvements they havemade as long as these businesses Price Forecasts Spinoff Successremain combined,” StephenVolkmann, a New York-based analyst “Breakups sometimes act as catalysts The index includes such companies asat Jefferies Group Inc., wrote in a Nov. to unlocking that value,” Kang said in ADT Corp., the residential security29 report. a phone interview from Purchase, business that was once part of TycoVolkmann estimates that Timken’s New York.“We don’t necessarily International Ltd., and Kraft Foodsparts would be valued at a total of believe Timken has to break up to Group Inc. after its grocery unit was$55 a share if the company were split, realize value,” he said. However, “we separated from the snack foodsand William Blair’s Eisner has the would not be against a breakup if the division, now known as Mondelezsame projection. company were for doing it.” […] The International Inc. “Historically,BB&T’s Holden Lewis forecast $61 to difference of opinions on a breakup spinoffs have worked out well,” Joe$62 a share in a Nov. 29 note. stems from whether investors are Cornell, founding principal of Spin-OffSunTrust Banks Inc.’s James Kawai seeking an immediate gain or are Advisors LLC in Chicago, said in asaid $69 in a report issued Nov. 14, patient enough to wait, said Stanley phone interview. “The commontwo weeks before Relational made its Elliott, a Richmond, Virginia-based thread that runs through all of this is,proposal public. Those estimates analyst for Stifel Financial Corp. A if you boil it down, the managementindicate an increase in Timken’s longer-term approach can be riskier, focus. They go from being unwieldymarket value of $1.4 billion, on he said. conglomerates with differentaverage. businesses competing for capital and Insider Ownership management’s attention, to being More Volatile more focused entities. Often that Both Relational and Timken “make translates into better financialWhile Timken would be worth more if valid points,” Elliott said in a phone performance that should work its waybroken up, “the presence of the more interview. “Splitting up the company into the stock.”volatile specialty steel business would be a way to unlock the valuesuggests a material 20%-type more near term. The longer-termconglomerate discount will likely view would be seeing that thepersist,” Kawai wrote. changes that they made to theTimken’s stock price is depressed business and investments that they’rebecause of the seasonality of its making are allowed to be realized,”business and because investors aren’t he said. “There would be somegiving its ability to generate cash execution timing, probably a littleenough credit, said Tim Kang, an more risk involved.” Insideranalyst for Olstein Capital ownership may impede a spinoff,Management LP, which oversees William Blair’s Eisner said. Members$555 million including Timken shares. of the founding family, includingTimken produced $359 million in free Chairman Ward J. Timken Jr., havecash flow, or cash from operations sole or shared voting power coveringafter deducting capital expenses, in 10.3% of the company’s shares, Source : Bloomberg 6GENEVA PARTNERS – 33 Quai Wilson – 1201 Geneva – Switzerland – Tel. : +41/22 906 95 95 – –
  7. 7. A C T ICVTI ISVTI SA CATCIT IIVTIYT Y T V % Company Activist Position % Ticker Position Outstanding Source Date Name investor Change Portfolio Shares ValueAct Capital ADOBE SYSTEMS ADBE US 31,303,362 1,000,000 6.3 15.0 13D/A 12-07-2012 Management LP Icahn Associates OSHKOSH OSK US 7,440,933 -1,224,327 8.1 1.8 13D/A 12-05-2012 Corp. Icahn Associates FEDERAL MOGUL FDML US 76,697,804 443,449 77.6 7.3 13D/A 12-04-2012 Corp. ValueAct Capital MSCI MSCI US 6,159,213 6,159,213 5.1 2.3 13D 11-28-2012 Management LP Marcato Capital DINEEQUITY DIN US 1,021,486 250,000 5.5 12.3 13D 11-27-2012 Management LLC Relational TIMKEN TKR US 5,495,247 2,270,000 5.7 4.3 13D 11-27-2012 Investors LLC CHESAPEAKE ENERGY CHK US Icahn Associates 59,698,689 9,613,487 8.9 9.9 13D/A 11-19-2012 NETFLIX NFLX US Icahn Associates 5,541,066 4,291,066 9.9 3.6 13D/A 11-19-2012 TROPICANA TPCA US Icahn Associates 17,862,706 733,047 67.8 2.0 13D/A 11-19-2012 ENTERTAINMENTFranck berlamontThis newsletter has been prepared Jean-François Bassignot by, and is subject to the copyright of, Geneva Partners S.A. (Geneva Partners).This newsletter is confidential and has been furnished to the intended recipient solely for such recipient’s information and private useand may not be referred to, disclosed, reproduced or redistributed, in whole or in part, to any other person.This newsletter has been prepared on the basis of information provided to Geneva Partners and publicly available information. Thisinformation has not been independently verified by Geneva Partners. This newsletter does not constitute a due diligence review andshould not be construed as such. No representation or warranty as to this newsletters accuracy, completeness or correctness is madeand no reliance should be placed on the accuracy, completeness or correctness thereof. The information contained, and any opinionsexpressed, in this newsletter are subject to change at any time and Geneva Partners is under no obligation to inform the intendedrecipient or any other person of any such change.Geneva Partners accepts no responsibility or liability whatsoever in relation to this newsletter (including for any error or in relation tothe accuracy, completeness or correctness of this newsletter). The exclusion of liability provided herein shall protect Geneva Partners,its officers and employees in all circumstances.This newsletter is not intended to form the basis of any investment decision and does not constitute or form part of any offer to sell oran invitation to subscribe for, hold or purchase any securities or any other investment, and neither this newsletter nor anythingcontained herein shall form the basis of or be relied on in connection with any contract or commitment whatsoever. This newsletter isnot, and should not be treated or relied upon as investment research or a research recommendation under applicable regulatory rules.Geneva Partners is a member of the Swiss Association of Asset Managers (SAAM). 7GENEVA PARTNERS – 33 Quai Wilson – 1201 Geneva – Switzerland – Tel. : +41/22 906 95 95 – –