November 25, 2006
IT AIN'T ALSACE:
Paris goes to war for bigger slice of Airbus (Russell Hotten, 25/11/2006, Daily Telegraph)
Shareholders in the Franco-German aerospace group EADS are at war after the Paris government said it wanted to increase its stake in the company to fund development of a new long-range A350 aircraft for its Airbus division.EADS cancelled a board meeting yesterday when France indicated it would block a proposal by the company's two main industrial investors to raise a substantial amount of the aircraft's €10bn (£6.78bn) launch aid from the capital markets.
Giving France a higher stake in EADS risks upsetting the delicate political and commercial balance. The French state and Lagardère own 29.99pc through a holding company. DaimlerChrysler owns 22.9pc, and the Spanish government 5.48pc. The rest of the shares are in free float.
advertisementA source said France wants to raise its holding by up to 15pc. DaimlerChrysler has already said it wants to reduce its stake and the Bonn government is trying to ensure the shares are placed with German institutions. The German government has said it does not want to buy a direct stake in EADS.
If even the German government is smart enough not to board the sinking ship, why would a private German investor? Posted by Orrin Judd at November 25, 2006 10:20 AM
Interesting that the article did not mention that the Russians own slightly more than 5% of EADS (and apparently want more, having asked for 2 seats on the board).
Posted by: ratbert at November 25, 2006 10:52 PM