TCI urges EADS to distribute Dassault stake to shareholders
The Children's Investment Fund (TCI) urged the European Aeronautic, Defence & Space Co (EADS) to distribute the stake it holds in Dassault Aviation among its shareholders. The letter sent by the hedge fund proposed that EADS Chief Executive Officer Tom Enders should give the 46% stake EADS holds in Dassault to shareholders in the form of dividends. This was a better option than having to sell the shares at an unattractive price.
The proposal came as EADS was mulling the next steps in the French jet and airplane maker. TCI wrote, "Once the distribution is completed, analyst coverage of the company would increase and the higher liquidity of the shares would make them more investible."
EADS spokesman Rainer Ohler told Bloomberg through email that the company's aim was to create value for their shareholders. "Central to our strategy is efficient capital allocation and the creation of shareholder value. We are keeping our shareholders fully appraised of our plans and progress, but we don't comment in public on individual shareholder proposals," he said.