TCI Just Wants To Have A Friendly Chat With Airbus

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So it sent the company a letter demanding it do something it probably wants to but can't without permission from François Hollande: Sell a large minority stake in another aerospace company that it holds at the behest of the République.

Activist hedge fund TCI has written to EADS' chief executive demanding the aerospace company sell its stake in Dassault Aviation, maker of the Rafale fighter jet, saying the 4 billion euro ($5.3 billion) holding was "a poor use of capital" and the proceeds should be given to shareholders….

EADS has an agreement to "warehouse" the Dassault stake, which it inherited from Aerospatiale - the French state company that helped found EADS in 2000 - on behalf of the French government….

Even though the French government no longer has a veto over EADS' strategy, it still has a final say over what EADS does with its Dassault stake.

TCI partner Ben Walker told Reuters that the fund had not spoken to other shareholders about the matter, but added that they were likely agree with its letter.

"EADS will clearly need the permission of the French government to sell the stake. We want to get all parties to table to reach a decision," he said. "The consolidation of the French defense industry is long overdue."

Activist fund TCI asks EADS to sell Dassault stake [Reuters]
EADS activist puts Paris on the spot [FT]

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