French aircraft-engine manufacturer Safran (www.safran-group.com) is facing shareholder pressure to withdraw its 8.5 billion euro bid to acquire Zodiac Aerospace after the take-over target announced its tenth profit warning in three years.

On 14 March, Zodiac said that its operating profit will fall by 10% in the fiscal year ending in August, rather than achieving the forecast increase of 20%.

Safran said later that day that Zodiac’s warning “reflects new developments compared with the information available” since the deal was announced in January, and that it could review the terms.

“Safran and Zodiac Aerospace are continuing their exclusive negotiations and will take into account the consequences of these developments in their discussions.”

The announcement prompted Safran shareholder TCIF (The Children’s Investment Fund) to renew its call on management to cancel the deal with the seat-making manufacturer, which would create the world’s third-largest aerospace supplier (by revenue).

TCIF CEO Christopher Hohn said: “In light of Zodiac’s catastrophic business update, Safran should immediately cancel its proposed take-over of Zodiac.” A decision is expected nest month.

Last year, Fabrice Brégier, head of Airbus Commercial (the civil arm of the European aerospace group), said that Zodiac was to blame for the failure to deliver a number of A350s on time.