Valeo stock soars on report of new interest

Shares in French car parts group Valeo reached their highest level in nearly five years today, helped by a bid report and by U.S. hedge fund Pardus raising its stake in the company.

Valeo shares were up 4 percent at 43.30 euros, or $57.83 at current exchange rates, in late morning trade in Paris, the stock's highest level since mid-2002. Its shares had earlier risen as much as 7.6 percent to an intraday high of 44.80 euros, or $59.83.

A Pardus spokesman said today that it had increased its stake to 12.25 percent of Valeo's shares, from more than 10 percent before.

He added Pardus now held 12.05 percent of Valeo's voting rights.

A source close to Pardus has said that the fund wants Valeo to buy Visteon Corp. Valeo has rejected this demand but has not excluded a possible deal for some assets.

A Valeo spokeswoman also declined to comment on a report in French paper Les Echos that U.S. investment fund Apollo Management LP was examining a possible bid for Valeo.

Based on latest prices, Valeo has a stock market value of around $4.55 billion (3.4 billion euros).