Pardus Capital, the activist New York hedge fund, has warned Valeo that it will take its battle for representation in the boardroom of the French car parts maker to its other shareholders unless the company cedes to its demand for two seats.

In a letter sent to all 11 Valeo directors last week, Pardus said that, as the biggest shareholder with a 20 per cent stake, it was “totally legitimate” for it to be allowed into the boardroom and characterised Valeo’s “persistent refusal” as “inexplicable”.