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Zodiac shares deepen losses on talk Safran could cut bid price
March 15, 2017 / 12:44 PM / 9 months ago

Zodiac shares deepen losses on talk Safran could cut bid price

LONDON (Reuters) - Zodiac Aerospace (ZODC.PA) shares deepened losses on Wednesday on market talk that aero engine maker Safran (SAF.PA) could cut consider cutting the price of its bid following a new profit warning from troubled aircraft seats maker.

One trader at a broker specializing in special situations and mergers said the risk of seeing a price cut was now a likely scenario. A price cut would strengthen the likelihood of a successful outcome to the transaction as it would repel criticism from hedge fund TCI which believes Safran is overpaying.

    Earlier on Wednesday TCI called for the chairman of Safran to be removed from his position unless he canceled Safran’s planned $9 billion takeover of Zodiac.

    Following Zodiac’s new warning, Safran reaffirmed its interest in acquiring the company but pledged to take new forecasts into account in takeover discussions.

    Zodiac shares were last down more than 15 percent.

    Reporting by Vikram Subhedar; editing by Danilo Masoni

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