TCI Launches Airbus Campaign

Aug 5 2013 | 11:28am ET

The target of its latest activist campaign may be a willing interlocutor, but that's no guarantee of success for The Children's Investment Fund.

The hedge fund on Friday wrote to European Aeronautic Defence and Space Co., the parent of Airbus, pushing it to rid itself of its 46% stake in Dassault Aviation. And, according to the Financial Times, EADS executives may like to do so.

But EADS holds the Dassault stake under a warehousing agreement with the French government, which owned one of EADS' predecessor companies. And it is unclear whether France would be willing to allow EADS to do away with Dassault.

TCI wants EADS to sell the stake through a trade sale or public offering, and to use the proceeds to return capital to investors. The hedge fund complained that the stake offers "no synergies" and "little strategic value" for EADS, which is soon to be renamed Airbus Group.

"EADS will clearly need the permission of the French government to sell the stake," TCI's Ben Walker told Reuters. "We want to get all parties to table to reach a decision. The consolidation of the French defense industry is long overdue."

TCI owns about 1% of EADS; the French government holds a 12% stake.

In Depth

Related-Company Fees: Normal Industry Practice or Conflicted Compensation?

Nov 11 2015 | 4:23pm ET

Regulatory agencies as well as investors are increasingly exploring whether certain...


Ferrari Roars in Wall Street Debut

Oct 21 2015 | 4:28pm ET

Shares of supercar maker Ferrari jumped as much as 15 percent to a high of nearly...

Guest Contributor

Private Debt - What is the Opportunity?

Nov 11 2015 | 3:28pm ET

In this contributed article, Rob Allard, founding partner of Firebreak Capital...


Editor's Note

    Oct 21 2015 | 10:41am ET

    One of the most unique charity benefits in the hedge fund industry, A Leg To Stand On's (ALTSO's) Hedge Fund Rocktoberfest - NYC, raised nearly $500,000 last Thursday thanks to the generous support of major sponsors and nearly 1,400 attendees from the Tri-State finance, business and hedge fund communities. Read more…