SAC Capital ups its Stake in Visteon, as Calls increase for a Break-up

SAC Capital ups its Stake in Visteon, as Calls increase for a Break-up


According to a 13G filed with the Securities and Exchange Commission (SAC), Steve Cohen’s SAC Capital Advisors now owns 5.04% of Visteon Corporation (NYSE:VC).  The total amount of shares owned are 2,655,700. This amount is an increase of over 47% from the 1,802,200 shares held by the hedge fund at the end of the second quarter. Shares of Visteon Corporation (NYSE:VC) closed up 1.52% on Friday to $48.88. This values SAC Capital’s stake at approximately $130 million.

There have been calls for Visteon Corporation (NYSE:VC) to break-up to maximize shareholder value. Barclay’s recently stated that  should Visteon successfully complete a strategic realignment through M&A, the sale of part(s) of the business combined with the remaining business could realize value of $60 per share. Interim CEO Tim Leuliette recently outlined a vision for Visteon Corporation (NYSE:VC) that makes it clear, in Barclay’s view, that the new management team and board are pursuing a breakup of Visteon Corporation (NYSE:VC) in a way that maximizes shareholder value. The purchase by SAC Capital could be an attempt to get management to implement changes.

Visteon Corporation (Visteon) is a global supplier of electronics, climate, , interiors and lighting systems, modules and components to global car equipment manufacturers.

For the nine months ended 30 September 2012, Visteon Corporation (NYSE:VC) revenues decreased 13% to $5.03B. Net income before extraordinary items decreased 35% to $64M. Revenues reflect Interiors segment decrease of 42% to $1.07B, Electronics segment decrease of 12% to $919M. Net income also reflects Restructuring expenses increase from $18M to $44M (expense), Transformation costs increase from $3M to $23M (expense).

Disclosure: No position