VSTN merger? French sovereign wealth fund takes stake in Valeo
8:03 AM ET 2/25/09 | Marketwatch
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11:43 AM ET 2/25/09
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LONDON (MarketWatch) -- France's sovereign wealth fund on Wednesday announced it had taken a stake in French auto parts group Valeo, a firm that has been targeted by a New York investment group pushing for a merger.
The FSI said it's taken an 8.3% stake in Valeo (VLEEY) and has 10.55% of the voting rights.
New York-based Pardus Capital Management, Valeo's top shareholder, has suggested the French firm merge with Visteon (VC), a rival auto parts maker in which Pardus also is the leading shareholder.
Pardus last May agreed not to exercise voting rights above 20% in Valeo and not sit on the board of Visteon or Delphi.
FSI said Valeo is a major European and world auto parts group and said Valeo's position in the sector is strategic.
The move comes as French President Nicolas Sarkozy has been accused of protectionism, notably for trying to get French automakers to lay off jobs only in foreign plants.
Valeo shares climbed 2.9% in Paris trade.
Posted by: pkripper Date: Wednesday, February 25, 2009 12:07:27 PM
In reply to: None Post # of 54
