Valeo, whose management has come under pressure from a restive shareholder, have the support of France’s FSI strategic investment fund. Valeo shareholder Pardus Capital Management have called on Valeo to overhaul their strategy to boost valuation, warning them to be cautious in acquisitions.
FSI Chairman Augustin de Romanet, on the other hand, calls Valeo CEO Jacques Aschenbroich’s overhaul efforts so far “very remarkable, so for the moment we support the management’s policy.” Romanet is head of French state-owned bank CDC, which is a majority shareholder in the FSI. The FSI owned 5.88 percent of Valeo at the end of March, while CDC held 3.07 percent.
Pardus previously fought a long-running battle to persuade Valeo’s management to streamline their operations. The battle ended with the departure of former CEO Thierry Morin. Pardus at one point held a stake of almost 20% in the company and secured a seat on the board. It now has 2.85% and no longer has the seat.
Aschenbroich said last month Valeo have made some headway on improving profitability and told shareholders he is confident they will meet their annual goals despite higher raw material prices.
