PARIS, June 15 Shareholders in Safran on Thursday backed resolutions that will free the French aero engine maker to pursue an agreed takeover of parts maker Zodiac . <\/p>\n
The planned merger would create the world's third-largest aerospace supplier after U.S companies United Technologies and General Electric. <\/p>\n
Thursday's Safran shareholder vote was a key demand of UK hedge fund TCI, which had waged an intense campaign to block the deal, or at least reshape it. <\/p>\n
In May, Zodiac accepted a 15 percent cut in Safran's $9 billion offer after Zodiac profit warnings. <\/p>\n
Safran's original $9 billion offer was weakened by conflicting movements in share prices and a deteriorating industrial performance at Zodiac, though on Wednesday Zodiac eased concerns by reiterating financial targets. <\/p>\n
Shareholders in Safran had been asked to vote in favour of two mechanisms that will enable the company to issue new preference shares that would then be convertible in ordinary shares after three years. <\/p>\n
Safran says it is confident of resolving Zodiac's industrial problems after visiting its plants, including a British factory blamed for the latest profit downgrade in April. <\/p>\n
Safran is offering 25 euros per Zodiac share in cash, down from 29.47 euros previously, or an alternative of preferred shares up to a total of 31.4 percent of the $7.7 billion deal. <\/p>\n
Zodiac Aerospace shares closed up 0.9 percent at 23.92 euros. Safran eased 0.2 percent to 77.86 euros. (Reporting by Cyril Altmeyer; Writing by Matthias Blamont. Editing by Jane Merriman) <\/p>\n
The following Spanish stocks may be affected by newspaper reports and other factors on Friday. Reuters has not verified the newspaper reports, and cannot vouch for their accuracy: <\/p>\n
* 58.com - Guazi.Com, co's unit that operates a consumer-to-consumer (C2C) used car trading platform, announced over us$400 million in series B financing Source text for Eikon: Further company coverage: <\/p>\n
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Safran shareholders approve plan to buy Zodiac Aerospace - Reuters<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" PARIS, June 15 Shareholders in Safran on Thursday backed resolutions that will free the French aero engine maker to pursue an agreed takeover of parts maker Zodiac . Continue reading