Members Login
    Remember Me  
Post Info TOPIC: BAE set to agree on Airbus stake sale


Status: Offline
Posts: 2450
BAE set to agree on Airbus stake sale
Permalink Closed

Now EADS will be the major share holder for Airbus

BAE set to agree on Airbus stake sale - paper By Reuters Sunday September 3, 03:31 PM

LONDON (Reuters) - Britain's BAE Systems is set to agree this week to sell its stake in plane maker Airbus to Franco-German-Spanish aerospace group EADS for 1.9 billion pounds ($3.6 billion), the Observer reported on Sunday.

The newspaper, citing City sources, said BAE would hold a board meeting "in the next few days" to take a final decision.

BAE had said in April it planned to sell its 20 percent stake in Airbus to its 80-percent owner, EADS.

But it put back the sale in July and ordered an audit after investment bank Rothschild, brought in to arbitrate after BAE and EADS failed to agree on a price, valued the stake at just 2.75 billion euros ($3.52 billion), well below forecasts.

The paper said BAE decided on a quick sale after question marks emerged over the A380 superjumbo programme.

It added at least two BAE directors were thought to have opposed a sale at the Rothschild valuation, but were now ready to agree, as Airbus faces increased pressure from U.S. competitor Boeing.

BAE is exercising a put option under an Airbus shareholders' agreement which it signed with EADS in 2001.

-- Edited by the_380 at 18:48, 2006-09-03

Light travels faster than sound...thats why people appear bright, until you hear them talk!
Page 1 of 1  sorted by
Quick Reply

Please log in to post quick replies.

Tweet this page Post to Digg Post to

Create your own FREE Forum
Report Abuse
Powered by ActiveBoard