http://biz.yahoo.com/ap/080331/pardus_redemptions.html?.v=1
Pardus Fund Halting Redemptions
Monday March 31, 6:05 pm ET
Activist Hedge Fund Pardus Halting Redemptions
NEW YORK (AP) -- Activist hedge fund Pardus Capital Management on
Monday said it's halting investor redemptions -- just as many of its
holdings are plummeting in value.
The New York-based fund, which manages more than $2 billion, is
currently seeking changes at several companies whose stocks it holds,
most notably Delta Air Lines Inc. and UAL Corp., the parent company of
United Airlines. Pardus has for months been trying to get the two
airlines to merge, and both investments have been significant losers.
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"The actions we have taken will allow us to protect the funds and
their investors from the external short-term pressure of the broader
financial markets and focus on realizing value on our ****tfolio
companies for investors over an extended period of time," Pardus said
in a statement.
Pardus, which is run by Karim Samii, said the action was "good news"
for the companies it invests in "because it reduces any market anxiety
that we might have to sell shares as we will be able to maintain our
investment horizons on our core positions and complete our
strategies."
An investment in French car parts maker Valeo SA has been particularly
painful for Pardus. Through its Pardus Europe Special Op****tunities
Master Fund LP, Pardus owns 12 million shares -- or more than $450
million worth -- of Valeo, making it Pardus' top holding. Valeo, which
has lost more than 40 percent of its value over the past year, takes
up almost a quarter of Pardus' ****tfolio.
Valeo on Monday denied it was in talks to allow Indian company Hinduja
Group to take a controlling stake in the company.
Pardus late last week sold more than 10 million shares of London-based
travel company Thomas Cook Group PLC, which was created last year via
the merger of Thomas Cook AG and MyTravel Group PLC. Pardus still
holds more than 34.9 million shares of Thomas Cook, but that's down
from 57.3 million shares as recently as January. During the fourth
quarter, Pardus sold all 12 million of its shares in another holding,
struggling Ford Motor Co.
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