Wyser-Pratte Management Company, Cycladic Capital and DGB Investments Announce Holding in Valeo SA (FR FP)

NEW YORK--(BUSINESS WIRE)--Jan. 25, 2007--Wyser-Pratte Management Company, Cycladic Capital and Douglas G. Bergeron (DGB) Investments, (the "Investment Group" or the "Group"), today notified Valeo SA (the "Company") of a concert party holding of approximately 2.4% of the outstanding shares of Valeo held by funds which the Investment Group manage.

The Investment Group believes that Valeo's assets are being under-managed and that there is the potential to significantly increase shareholder value through a more proactive approach to restructuring and portfolio management.

Most of the divisions are performing worse than their peers. The Group calls on management to accelerate the pace of restructuring among the Company's twelve divisions and eliminate the inefficiencies in the current structure.

The Group also believes that the research and development process, organization and pipeline is managed ineffectively and has the scope to be significantly improved. Further benefits can come from the consolidation of the production and logistics network, and elimination of excess overhead costs. The opportunity is there to significantly increase Valeo's operating margins through a well-implemented restructuring process.

The Investment Group seeks to bring an immediate halt to any further acquisitions being contemplated by management, including the acquisition of Ford's North American heating and air conditioning plants and/or an acquisition of parts or all of Visteon, until such time as Valeo management has been able to convince shareholders of the merits of such acquisitions in the context of a broader strategic plan.

The Group looks forward to a constructive and meaningful discussion with management and major shareholders in the near future.

Wyser-Pratte Management Company, based in New York City, is a value oriented investment fund focused on delivering returns to its limited partners through active involvement with its investments. Mr. Wyser-Pratte has been a prominent shareholder activist since 1974 and has focused on shareholder initiatives to restructure European companies since 1995.

Cycladic Capital, based in London, is an investment fund that invests in European companies and seeks, through active engagement, to crystallize the value inherent in these companies. Cycladic has successfully worked with senior management and the boards of companies across Europe to deliver value to shareholders.

DGB Investments, based in San Jose, California, is the wholly-owned investment vehicle of Douglas G. Bergeron, Chairman, CEO, and largest individual shareholder of VeriFone Holdings (NYSE: PAY). DGB Investments has successfully engaged with corporations worldwide to accelerate operational and competitive improvements to their businesses. In 2006, Mr. Bergeron was selected by Carl Icahn to his proposed slate of alternative directors for Time Warner, Inc.


Wyser-Pratte Management Co., Inc.

Guy P. Wyser-Pratte,



Cycladic Capital LLP

Dimitri J. Goulandris, 44 20 7529 1871


DGB Investments, Inc.

Douglas G. Bergeron, 408-232-7801