TCI calls on EADS to offload Dassault stake - report.
M2 EQUITYBITES-August 5, 2013-TCI calls on EADS to offload Dassault stake - report(C)2013 M2 COMMUNICATIONS http://www.m2.com
5 August 2013 - Hedge fund TCI has urged the European aerospace and defence group EADS NV (EPA:EAD) to shed its 46% stake in French aircraft maker Dassault Aviation SA (EPA:AM) because of its restricted strategic value, Reuters said today, citing a letter sent by TCI to EADS' CEO Tom Enders.
In the letter, which was seen by the agency, the hedge fund proposed that EADS, in which it owns over 1%, should sell its Dassault interest via a trade sale or public offering and use the proceeds to repurchase shares or distribute a special dividend.
The Financial Times earlier reported that a source close to Dassault had said that the French company's senior management could be in favour of TCI's proposal. However, a sale would be impeded by a shareholder pact with the French government, owner of 12% in EADS, the person said.
Reuters could not immediately contact EADS for comment. According to the agency, EADS's stake in Dassault is valued at EUR4bn (USD5.3bn).
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|Publication:||M2 EquityBites (EQB)|
|Date:||Aug 5, 2013|
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