May 12, 2017 / 8:28 AM / 3 months ago

TCI calls for Safran to cancel Zodiac deal immediately, fix engine problems - letter

LONDON, May 12 (Reuters) - Activist investor TCI on Friday called on the board of French aerospace firm Safran to cancel its planned takeover of Zodiac Aerospace immediately and instead focus on fixing design problems with a new engine.

The move, in a letter to the Safran board dated May 12, is the latest attempt by the British hedge fund to stop the deal with Zodiac, which it considers over-valued.

In the letter, TCI founder Christopher Hohn said instead of pursuing the deal, which would take up a lot of management time and focus, it should instead look to fix a problem with its new LEAP engine, after Boeing this week suspended some flights due to a problem with its design.

A spokeswoman for Safran declined to comment when contacted by Reuters. (Reporting by Simon Jessop and Cyril Altmeyer)

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