Activist hedge fund opposes pay and appointments at Zodiac
by Harriet Agnew
An activist hedge fund is attempting to drum up support among fellow shareholders in Zodiac Aerospace to oppose proposals on remuneration and director appointments at the struggling French maker of aircraft interiors and safety systems that has issued nine profit warnings in two years. Hedge fund CIAM believes that Zodiac’s poor integration of acquisitions over several years has led to a significant delay in seats manufacturing and resulted in very low profitability. It has hired a proxy solicitor Georgeson to rally other shareholders in the company and is bracing itself for a battle at Zodiac’s general meeting on January 19. “Quarter after quarter Zodiac has continued to issue profit warnings,” says Anne-Sophie d’Andlau, co-founder and managing partner of CIAM. “The company’s governance is not correct and it’s an impediment to turning around performance more quickly and resolving operational issues.” Zodiac families have 36.6 per cent of voting rights and four out of 11 seats on the supervisory board.
CIAM believes that at next week’s meeting shareholders should vote against the appointment of Fidoma as the new member of the supervisory board. ...