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7 months ago
Safran launches 10 billion euro friendly takeover of Zodiac Aerospace - Le Figaro
January 18, 2017 / 10:09 PM / 7 months ago

Safran launches 10 billion euro friendly takeover of Zodiac Aerospace - Le Figaro

An employee works on aircraft engine nacelle systems at Safran Nacelles plant in Gonfreville l'Orcher, near Le Havre, France, November 10, 2016.Benoit Tessier

PARIS (Reuters) - French aircraft engine maker Safran (SAF.PA) has launched a friendly takeover worth about 10 billion euros ($10.6 billion) for Zodiac Aerospace (ZODC.PA), the French daily Le Figaro reported on Wednesday, citing unidentified sources.

The paper said the merged company would have a turnover of about 21 billion euros.

Neither Safran or Zodiac could immediately be reached for comment.

French jet interiors supplier Zodiac has been the subject of takeover speculation for months after issuing a series of profit warnings.

It pledged in November to return to traditional levels of profitability by 2019-20, but its forecast for this year fell short of analysts' expectations.

Safran tried to woo family-controlled Zodiac in 2010 only to be rebuffed before launching a bid.

Analysts have expressed mixed views about whether it would make sense for Safran to renew its interest in Zodiac, which had a market value of 6.7 billion euros at Wednesday's close.

Safran, which already has a seats division, has said it would favor opportunities which reinforce its footprint in aerospace equipment, with a bias towards top-tier suppliers in high-tech businesses with a recurrent services aftermarket.

Reporting by John Irish and Cyril Altmeyer; Editing by Robin Pomeroy

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