The French government’s Strategic Investment Fund (FSI) may increase its stake in Valeo if Pardus Capital Management or another major stockholder were to sell their shares.

The fund’s CEO Gilles Michel told an automotive forum in Paris that whenever a block of shares is put up for sale in a way that alters a company’s capital structure, it would take an interest.

FSI raised its stake in Valeo to 8.33% in February and said a further increase was possible. Last year New York-based Pardus won a Valeo board seat, the culmination of a two-year standoff with management following a Pardus proposal for a tie- up with Visteon.

The EUR20bn (US$28bn) FSI is 51% owned by state lender Caisse des Depots et Consignations and 49% by the government.