Zacks Analyst Blog Highlights: Accenture plc, Statoil ASA, Procter & Gamble, Sara Lee and Cell Therapeutics - Press Releases

For Immediate Release

Chicago, IL – July 7, 2010 – Zacks.com Analyst Blog features: Accenture plc (ACN), Statoil ASA (STO), Procter & Gamble Company (PG), Sara Lee Corporation (SLE) and Cell Therapeutics, Inc. (CTIC).

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513

Here are highlights from Tuesday’s Analyst Blog:

Accenture Wins 5-Year BPO Deal 

Recently, Accenture plc (ACN) announced that it had been awarded a 5-year business process outsourcing (BPO) contract by Norwegian energy company Statoil ASA (STO) to provide the latter with financial management services.

As per the terms of the agreement, Accenture will reengineer Statoil’s Accounts Payable processes with its Global Delivery Network. Accenture expects the delivery of its outsourcing services to begin in September 2010.

We believe that the successful completion of the project will help Accenture to win more deals from the energy sector, which is a relatively new market for the company. However, we remain unclear about the financial impact of the deal on Accenture’s revenue stream as economic details were not disclosed.

In the current economic environment, businesses need to be able to respond to changing market conditions, which require prompt actions with limited resources. Hence, organizations look for third party service providers who can carry out routine functions on their behalf, leaving the organizations free to focus on their core responsibilities. This has resulted in rapid growth of outsourcing across the world.

We feel that with the continuous delivery of skills, experience and efficiencies through its outsourcing services over the past few years, Accenture is well positioned to win large outsourcing deals.

Additionally, Accenture has had some success across different industrial sectors. Last month, Accenture won a seven-year application outsourcing agreement with Aviva's property claims repair service department, Asprea. As per the terms of this agreement, Accenture will provide application and infrastructure outsourcing services for Aviva’s buildings claims division in the U.K.

Last year, Accenture won a 7-year outsourcing contract from Scandinavian Airlines for providing financial management services. We look forward to seeing Accenture playing a key role in the aviation sector with the help of its subsidiary Navitaire, which provides technological support to more than 75 airlines worldwide.

P&G Completes Buy from Sara Lee

Procter & Gamble Company (PG), a manufacturer of consumer goods, has completed its acquisition of the Ambi Pur brand from Sara Lee Corporation (SLE) for €320 million (about $470 million). Procter & Gamble will pay about 12% of the total consideration into escrow account pending deferred transfers of certain assets.

In February 2010, Sara Lee hedged €1.6 billion at $1.35 per euro in anticipation of proceeds to be generated by the divestiture of its Household & Body Care business. This deal was initiated by Sara Lee in December 2009.

The Ambi Pur acquisition enlarges Procter & Gamble’s global leadership in Home Care and specifically Air Care, and will widen its base in Europe and Asia. Procter & Gamble’s growth drivers include product innovation, expansion into emerging markets, and continuing cost-cutting through process simplification and productivity enhancement.

For Sara Lee, this divesture is part of its strategy to sell its international Household & Body Care business. The company has recently closed the sale of its 51% stake in its Godrej Sara Lee joint venture to Godrej Consumer Products Ltd. for a total price of €185 million ($230 million).

Sara Lee is also in discussions with Unilever to sell off its global body care and European detergents businesses. To divest its insecticides business, the residual part of Household & Body Care division, Procter is in conversation with SC Johnson. Both these divestures are expected to be complete by the end of 2010, subject to customary closing conditions.

The completion of pending divestures will transform Sara Lee into a leading global food and beverage company. The disposal of non-core assets would also help invest these proceeds in accretive acquisitions. Sara Lee also intends to enhance shareholder return by using the proceeds to repurchase shares.

CTIC Set for Pixantrone EU Filing 

Recently, Cell Therapeutics, Inc. (CTIC) announced the submission of an expanded Pediatric Investigation Plan (PIP) to the European Medicines Agency (EMEA). The submission was for its lead candidate pixantrone, which is being developed for the treatment of relapsed or refractory aggressive non-Hodgkin’s lymphoma (NHL) in patients who have not responded to other treatment options. The PIP provides the outline of the process the company intends to follow to study the drug in children.

The company intends to submit a Marketing Authorization Application (MAA) seeking marketing approval for pixantrone in the EU later in the year. The pediatric program intends to evaluate the safety and efficacy of pixantrone compared to chemotherapy drug doxorubicin in children (aged between 6 months and 18 years).

We remind investors that Cell Therapeutics originally submitted the PIP in September 2009. However, pixantrone's potential but unconfirmed benefit to children in reducing long-term cardiotoxicity in combination with current medications prompted the pediatric committee of the EMEA to ask for an expanded PIP in April 2010. The recommendation followed discussions regarding the data pertaining to pixantrone and the desire to explore the potential benefits of pixantrone in children suffering from hematologic cancer.

Earlier in the year, pixantrone was denied approval by the US Food and Drug Administration (FDA), due to lack of sufficient clinical data.

Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=5515.

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: http://at.zacks.com/?id=5517.

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=5518.

Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Follow us on Twitter: http://twitter.com/zacksresearch

Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts.

Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.

Contact:
Mark Vickery
Web Content Editor
312-265-9380
Visit: www.zacks.com