The U.S. investment fund Pardus is leaving the board of Valeo. This decision follows agreements reached in 2008 which provided that Pardus would not sit on the Board of Directors of the French automotive supplier Valeo if participation dropped below 8% of capital. In fact, the investment fund has crossed that threshold on August 12 and no longer holds that 7,85% capital and 7.36% of voting rights of Valeo. According to a source familiar with the matter , Pardus could hold just over 5% of Valeo by the end of September.
Representing the U.S. fund which is one of the partners, Behdad Alizadeh has resigned from the Board of Directors of Valeo. He had entered in June 2008, while Pardus owned 19.7% stake in the automotive supplier. Valeo had accepted the presence of a representative to its board of directors after difficult negotiations aimed at avoiding any conflict of interest, Pardus featuring 23% of Visteon, a U.S. competitor of Valeo .
The fund has however said he remained “a committed shareholder , committed to maximizing shareholder value . ” Pardus reduced its stake in Valeo to pay its own investors by giving them cash and securities of the automotive supplier.”
In exchange , shortly after 10:00 , the title Valeo lost 2.30% to 27.61 euros while the CAC 40 was down 0.82% .