It has come to the knowledge that Karim Samii, the founder president of Pardus Capital Management L.P. has declared in a recent note that it is the high time for Valeo to undertake a board-level, in-depth strategic review of all of its options. Valeo is an eminent independent industrial group with its focus on the design, production and sale of components, systems and modules for cars and trucks, both on the original equipment market and the aftermarket. It also ranks among the world's top automotive suppliers and supplies all major vehicle manufacturers.

The Pardus Capital Management L.P. owns more than 13% of Valeo’s common stock and is the company’s largest shareholder. It strongly believes that the challenges and opportunities of the industry are becoming too great for Valeo to allow the status quo to sustain. It hopes that over the next few years, successful automotive parts suppliers will transform their business model to focus on core, high-value added business lines, and shall become the number one or two suppliers in those lines globally. So it is the high time for Valeo to concentrate on core competencies while reducing exposure to production volatility of specific OEMs.

Therefore to Pardus headed by Karim Samii, thinks it essential for Valeo to undertake a board-level, in-depth strategic review of all of its options that includes:
• Thorough review of all current business lines
• Possible tack-on acquisitions in core competencies
• Better aligning Valeo’s capital structure with its strategy
• Potential LBO after a transparent process and at a fair price

In his note Karim Samii declared, “Pardus’ objectives, as a long-term investor and Valeo’s largest shareholder, are for the company to become stronger and to maximize shareholder value. We are a significant investor in the automotive sector. Over the next few years, the successful automotive parts suppliers will transform their business model from depth of client and breadth of product to depth of product and breadth of client. We strongly believe that Valeo must position itself to take advantage of the changes in the industry.

Valeo needs a strong, active board of directors in order to set the company’s strategic direction and work with management to turn the company into a powerful market leader. We were surprised and disappointed to read last week Thierry Morin’s statement that he is satisfied with EUR40 per share. Pardus is not. Despite management’s repeated mention of an impending LBO, the company has been forced to admit it has no firm offers. Any such transaction should be considered in the context of an open, transparent process and in comparison to the full scope of Valeo’s other options.

For these reasons, we ask shareholders to reject management’s status quo approach and support Pardus’ vision for creating value by voting FOR our resolutions.”