PARIS -- Faurecia is not planning at this stage to make a new offer for minority shareholders in German takeover target Hella, a spokesperson said on Tuesday, after activist fund Elliott Investment Management built a 6.6 percent voting stake in Hella.
Separately, Faurecia said in a statement it would own 79.5 percent of lighting group Hella's shares after its takeover offer for outstanding shares ended on Nov. 11 -- below the 90 percent threshold it would need to delist the company.
News of Elliott's stake-building, which emerged in a regulatory filing on Monday, suggested the fund led by Paul Singer may be betting on Faurecia launching an improved offer to squeeze out remaining shareholders.
"It's not on the agenda at this stage," a Faurecia spokesperson said by email when asked if the company would launch such an offer.
"We are satisfied with the result [of the offer that ended on Nov. 11] which allows us to move forward in the transaction, in particular with regards to the implementation of synergies," he said.
Elliott declined to comment.
Faurecia gained control of Hella in August after striking a deal with a pool of family-related Hella shareholders over their 60 percent stake for 60 euros ($70.75) per share, valuing the company at 6.7 billion euros.
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The acquisition allows Faurecia, a supplier to brands such as Ford, Renault and Tesla, to boost its expertise in connected and electrified components.
Singer holds the voting rights via shares and instruments, according to a filing Monday. The move is a bet Faurecia will seek a so-called domination agreement with Hella, according to people familiar with the matter.
A domination agreement gives an acquirer wide-ranging control over a target under German law. It requires at least 75 percent backing from a target's shareholder base and, if approved, another offer to outstanding shareholders. These new offers typically come at a premium to the initial bid.
The move pits the hedge fund against Faurecia CEO Patrick Koller, who said his company doesn't need a domination agreement to realize synergies and has no issue keeping Hella listed.
Elliott has successfully used this playbook before in Germany.
The Florida-based hedge fund was among investors that forced Vodafone Group to sweeten its offer for minority investors in Kabel Deutschland Holding in 2020, seven years after it agreed to buy the German telecommunications company.
