The Intelligize Flash — May 25, 2016

Intelligize Flash Report – May 25, 2016.

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M&As

On May 24, 2016, Computer Sciences Corp acquired Hewlett Packard Enterprise Co. in a $8.5 billion dollar Mergers, Spin-off / Demerger.  The target company, Hewlett Packard Enterprise Co., is a public company incorporated in Delaware and headquartered in California.  They are members of the computer and office equipment industry.  The acquiring copany, computer sciences corp., is a public company incorporated in Nevada and headquartered in Virginia.  They are members of the services/computer integrated systems design industry and were represented in this merger by the law firm Allen & Overy LLP.  Computer Sciences Corporation operates through three segments: Global Business Services, which is a provider of various technology solutions, including consulting, applications services and software; Global Infrastructure Services, which provides solutions, such as managed and virtual desktop solutions, and data center management, and North American Public Sector, which delivers IT, mission, and operations-related services.

 

IPOs

On May 24, 2016, Selecta Biosciences Inc. filed their S-1 with the SEC for the registered amount of $75 million dollars. Selecta Biosciences Inc. is a clinical-stage biopharmaceutical company using their proprietary synthetic vaccine particle, or SVP, technology to discover and develop targeted therapies that are designed to modulate the immune system to effectively and safely treat rare and serious diseases. Many such diseases are treated with biologic therapies that are foreign to the patient’s immune system and, therefore, elicit an undesired immune response. Of particular concern are anti-drug antibodies, or ADAs, which are produced by the immune system in response to biologic therapy and can adversely affect the efficacy and safety of treatment. The company’s proprietary SVP technology encapsulates an immunomodulator in biodegradable nanoparticles to induce antigen-specific immune tolerance to mitigate the formation of ADAs in response to life-sustaining biologic drugs.

 

Popular Memos

On May 24, 2016, the law firm Clifford Chance LLP released the memo Middle East legal trends in a sustained low oil price world.  The briefing note discusses the similarities and differences between the 2014/2015 crude oil price drop and the price crash of 2008.  The note explains that the 2008 pricing downturn lasted only a few months before prices recovered to US$100+/barrel. After a period of around five years during which Brent Crude traded consistently around or above US$100/barrel – and nearly 10 years at pricing consistently above $50/barrel – we are now in a period where Brent Crude has traded in a range of US$25-US$65 per barrel since the start of 2015. With sustained supply from OPEC into a market oversupplied by new production, new technology, large inventories and an uncertain demand picture, some commentators have suggested parallels to the impact of new North Sea supply in the 1980s, with oil trading in the US$10-US$30 range for most of that decade. The industry’s mantra seems to have become “much lower, for much longer”.

 

SEC Litigation

On May 24, 2016, the SEC released and filed the document Michael J. Kipp and Joanne K. Viard under the material type/category litigation/litigation releases with the release number LR-23544.  The report announced charges made by the SEC against three former corporate officers of North Carolina-based hygiene and sanitation company Swisher Hygiene, Inc. for their participation in a fraudulent earnings management scheme.  According to the SEC’s complaint, during the second, third and fourth quarters of 2011, Michael J. Kipp, Swisher’s former CFO, exploited Swisher’s lack of effective internal controls and directed his accounting group to aggressively reevaluate and manipulate various acquisition-related reserves and expenses in order to increase earnings to predetermined targets tied to the expectations of the company’s lenders as the basis for future acquisition financing. The SEC’s complaint alleges that Joanne K. Viard, Swisher’s former Director of External Reporting, identified potential acquisition-related entries that could be reclassified to meet earnings targets, and made various adjusting entries in Swisher’s accounting records without adequate justification or support.