LONDON (Reuters) - Activist hedge fund TCI Fund Management on Wednesday said Zodiac Aerospace (ZODC.PA) shares were now worth 7-10 euros each ($10.92), after the French firm last Friday posted a first-half loss.
TCI is campaigning to pressure Zodiac suitor Safran (SAF.PA) to drop its bid to buy the firm and had previously valued it at 10 euros a share in a presentation on March 24.
The hedge fund manager said in a presentation shared with Reuters on Wednesday that an offer above 10 euros “results in value destruction”.
TCI credited their revised valuation in part to a reported loss in the first half of 2017 and ‘unrealistic’ forecasts of a return to mid-teen margins.
Reporting by Maiya Keidan, editing by Simon Jessop