October 11, 2017 / 8:47 AM / 9 months ago

Elliott not pushing for GEA break-up, wants dialogue - source

FRANKFURT, Oct 11 (Reuters) - Activist investor Elliott is not pushing for radical changes at GEA, a person close to the matter said after the fund took a 3.01 percent stake in the German food-processing machinery maker.

“A break-up of GEA is not part of Elliott’s investment thesis,” the person said on Wednesday, adding that the investor also saw no need in the company to accelerate its international expansion.

“It is about internal housekeeping. There is tremendous potential for margin improvements,” the person said, adding that Elliott is aiming for a constructive dialogue with the current management.

GEA’s shares rose over 6 percent on the news of Elliott’s investment.

A spokesman for GEA, which has issued two profit warnings over the last twelve months, said that the company has been in contact with Elliott as part of its normal investor relations activities.

Elliott declined to comment.

Reporting by Arno Schuetze; Additional reporting by Tom Kaeckenhoff; Editing by Victoria Bryan

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