By David Barkholz, Automotive News
New York -- A hedge fund that has dramatically increased its stake in Visteon Corp. in the past week wants to appoint a trustee to automotive supplier's board of directors.
Pardus Capital Management LP said in a regulatory submission on 26 Sep that Visteon management has taken its request "under advisement."
It remains unclear whether the Pardus Capital request is being viewed as hostile or friendly.
The New York hedge fund paid about $4.1 million on 25 Sep to buy 500 000 additional shares of Visteon, which followed its purchase on 22 Sep of 1.5 million shares.
Pardus Capital now owns 18 million shares of Visteon, or 14.1 percent of the 128 million outstanding shares - all of which were purchased this year.
In its submission to the US Securities and Exchange Commission, Pardus Capital said it paid $109.1 million for the Visteon shares.
Representatives of Visteon could not be immediately reached for comment and Pardus Capital manager Karim Samii did not return calls.
Visteon has been rumoured for weeks to be in talks with Valeo SA to sell some or all of Visteon to the French parts supplier.
Visteon CEO Michael Johnston declined to comment when asked about Valeo.
Visteon disclosed that automaker production cuts would cause its second-half sales to plunge about 10 percent from the first-half total of about $5700 million.
Ford Motor Co., Visteon's largest customer, is cutting fourth-quarter production by 21 percent, while General Motors and DaimlerChrysler are also cutting fourth-quarter production by more than 10 percent.
Visteon generates about 48 percent of sales from Ford.
From Automotive News (A Crain publication)