Activist fund TCI backs EADS boss as defense cuts loom

jeudi 31 octobre 2013

Logo of EADS is seen at the European aerospace and defence group EADS headquarters in Les Mureaux near Paris The head of hedge fund TCI said he is backing the boss of aerospace giant EADS (EAD.PA) in his "aggressive" approach to slash costs and grow profit, and expects management to announce further cuts in its defense unit soon. Chris Cooper-Hohn, whose TCI owns more than 1 percent of EADS' share capital, said he believes EADS is set to benefit as its management focuses on commercial aircraft production and shields the firm from undue meddling from government shareholders in France and Germany. "We believe the company is in the process of doubling and then tripling its profitability," Cooper-Hohn told an audience at the Ira Sohn conference in London on Thursday. Cooper-Hohn, an aggressive activist investor with a record of successfully taking on high-profile executives, said EADS had a $1 trillion backlog of orders, would improve margins as its pricing power strengthened, and was in a better position to cut costs now negative political influences had been neutralized.








via Business News - Yahoo Finance http://finance.yahoo.com/news/activist-fund-tci-backs-eads-175510407.html

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