In a nutshell
· In his 09/25/15 note ,our Exane BNPP analyst reiterated the view that a takeover bid for Zodiac is “still unlikely”
· That said and as a key reminder ,Safran’s former managerial team unsuccessfully attempted to acquire the company in 2010
· The fresh plunge in the Zodiac share price is consequently reopening the theoretical takeover window
· A deal ,if any ,would have to be structured on an all-share basis to minimize implied tax costs
2 initial statements from Safran
· “Safran confirms that it proposed to Zodiac Aerospace to examine the merits of bringing their activities together”
Press release of July 11, 2010
· “The Group is not in the process of preparing an offer for Zodiac Aerospace”
Press release of August 30, 2010
And a final (?) withdrawal : “Safran will not make an offer for Zodiac”
Safran became subject to a 6-month bidding restriction after issuing on 11/18.10 the following notification to AMF:
“Since last June, Safran has deepened its understanding which fully confirmed its analysis of the industrial merits of a combination with Zodiac Aerospace, as well as the strategic benefits induced by technological complementarities.”
“The Group had proposed to the Chairman of the Supervisory Board and the Chief Executive Officer of Zodiac jointly to examine the merits of a friendly combination.”
“Following several contacts and under current circumstances, the conditions for a friendly combination are not met. In harmony with its corporate culture, Safran will not make an offer for Zodiac.”