Activist hedge fund TCI says Zodiac shares now worth even less
The logo of French aircraft seats and equipment manufacturer Zodiac Aerospace is seen during the company's first half of the 2015/2016 fiscal year presentation in Paris, France, April 20, 2016. REUTERS/Benoit Tessier
LONDON Activist hedge fund TCI Fund Management on Wednesday said Zodiac Aerospace (ZODC.PA) shares were now worth 7-10 euros each ($10.92), after the French firm last Friday posted a first-half loss.
TCI is campaigning to pressure Zodiac suitor Safran (SAF.PA) to drop its bid to buy the firm and had previously valued it at 10 euros a share in a presentation on March 24.
The hedge fund manager said in a presentation shared with Reuters on Wednesday that an offer above 10 euros "results in value destruction".
TCI credited their revised valuation in part to a reported loss in the first half of 2017 and 'unrealistic' forecasts of a return to mid-teen margins.
(Reporting by Maiya Keidan, editing by Simon Jessop)