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David Einhorn Comments on Airbus Group

January 23, 2014 | About:
Holly LaFon

Holly LaFon

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We closed out positions in Airbus Group (XPAR:AIR), formerly known as the European Aeronautic Defence& Space Company (France: EADS), and ThyssenKrupp (Germany: TKA)

We bought the shares in EADS during a sell-off in response to the company’s unpopular proposal to buy BAE Systems in 2012. EADS ultimately abandoned the merger and insteadrepurchased a lot of stock while also reorganizing its corporate structure to reduce the influenceof several government shareholders. The shares rallied and we sold for a nice gain. We also bought TKA shares in 2012. Though management made significant progress in restructuring thecompany, a difficult external environment meant that asset sales and cash flow generation fellshort of their hopes and ours. We exited with a very small loss

From David Einhorn (TradesPortfolio)'s fourth quarter 2013 commentary.


Rating: 5.0/5 (2 votes)

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