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Shares in Safran's bid target Zodiac slump after profit warning
March 15, 2017 / 8:36 AM / 9 months ago

Shares in Safran's bid target Zodiac slump after profit warning

PARIS (Reuters) - Shares in Zodiac Aerospace (ZODC.PA), which rival Safran (SAF.PA) is planning to buy, slumped on Wednesday after it issued a new profit warning.

The logo of French aircraft seats and equipment manufacturer Zodiac Aerospace is seen during the company's first half of the 2015/2016 fiscal year presentation in Paris, France, April 20, 2016. REUTERS/Benoit Tessier/File Photo

The supplier of aircraft interiors shares were down 14.8 percent at 23.41 euros by 0807 GMT, below Safran’s offer price of 29.47 euros.

Zodiac disclosed late on March 14 new cost overruns and slashed its earnings guidance, with the company now forecasting annual core operating income falling by around 10 percent, against a previous forecast of a 10-20 percent rise.

However, Safran reaffirmed its interest in acquiring Zodiac, stating it was confident it could turn around the group’s fortunes.

Reporting by Sudip Kar-Gupta; Editing by Matthias Blamont

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