PARIS (Bloomberg) -- Valeo SA, France's second-largest parts supplier, rose as much as 7.4 percent in Paris trading after saying it's working with financial advisers to evaluate strategic options.
Valeo SA has hired Bank of America Merrill Lynch as an adviser, according to three people familiar with the matter who asked not to be identified.
An evaluation is underway and focuses on acquisitions of rival businesses or entire companies, rather than a sale of Valeo, one of the people said.
“As part of the industrial strategy unanimously approved by the board and presented to investors, with the support of appropriate advisers, Valeo intends to actively work to ensure the highest possible value for the group in a fast evolving sector,” Valeo said late yesterday in a statement after its annual shareholders' meeting.
A Valeo spokeswoman declined to comment.
Valeo climbed as much as 1.74 euros to 25.26 euros and traded at 24.75 euros as of 12:45 CET on the Paris exchange, bringing gains since yesterday to 13 percent. The partsmaker has a market value of 1.9 billion euros ($2.3 billion).
The Paris-based company yesterday forecast a 35 percent increase in first-half sales to about 4.7 billion euros. Operating margin will be “close to” 6 percent, the highest half-yearly level in eight years. Faurecia SA is France's biggest partsmaker.
Valeo, whose product lines span windshield wipers, headlights, air conditioning and hands-free parking controls, ousted Thierry Morin as CEO last year amid investor calls for more asset disposals.
Successor Jacques Aschenbroich regrouped Valeo's activities into four divisions -- down from 11 -- and in September scrapped plans to sell assets with 1 billion euros in revenue, saying pressure for disposals had been “very negative” for business.
Pardus Capital Management LP, a New York-based hedge fund, is Valeo's largest shareholder with a 19.8 percent stake at the end of last year.
Valeo ranks No. 15 on the Automotive News Europe list of the top 100 global suppliers, with sales to automakers of $10.3 billion in 2008.