TCI tries to block the Safran-Zodiac deal on reasons including valuation, synergies, voting process. We believe it will not wreck the deal.
TCI critical against the Safran – Zodiac deal
The Financial Times reports that TCI (The Children Investment Fund) has written to the French AMF asking for Safran shareholders to be given a chance to vote on the Safran-Zodiac deal before the tender offer is initiated. TCI also wrote to the Safran chairman to call on dropping the offer. TCI criticises the strategic rationale of the deal, its price and the “questionable synergies”. TCI also raises the issue of preferential treatment between Zodiac shareholders and family shareholders. TCI recommends instead that Safran use the cash to buy back shares.