Germany to take stake as EADS shakes up ownership
Associated Press
2012-12-06 01:26 AM
European aerospace and defense giant EADS announced Wednesday a new ownership structure in which Germany is set to join France and Spain as state shareholders _ even as overall government influence shrinks at the company.

The parent company of plane maker Airbus, the archrival of U.S.-based Boeing Co., said the deal would eventually give the French and German government each 12-percent shares, while Spain would hold about 4 percent. Meanwhile, private-sector investors Daimler AG of Germany and France's Lagardere SCA would reduce their respective stakes.

EADS, Europe's largest aerospace company, has been looking for new direction after squabbling between its German and French owners and the British government in October scuttled a proposed $45 billion tie-up with BAe Systems of Britain. That deal would have created a company with a market value just shy of Boeing's.



EADS NV said the shareholding overhaul will "simplify the governance" and allow the state shareholders to "protect their strategic interests." The moves would ultimately amount to less state influence at the company _ reducing their interests in the company from about 50 percent currently to just under 30 percent if the deal is completed.

Daimler, the German carmaker behind Mercedes-Benz, said in a statement that the deal was "a big step towards a more market-oriented shareholder structure and will expand the entrepreneurial freedom of EADS."


At the end of 2011, a French state investment vehicle, Sogepa, held about 15 percent while Lagardere owned about 7.5 percent _ putting them on a par with the total 22.35 percent held by Daimler.

Under Thursday's agreement, France will ultimately reduce its holding from 15 percent currently to 12 percent, while Germany's government steps into the picture directly for the first time.

The French government added that the deal would also ensure "the projection of the strategic interests of national defense."

France, along with Britain, is the biggest military power in western Europe. Besides its Airbus civilian aircraft business, EADS is also a major player in military contracting _ with products and stakes in projects like the Ariane-5 satellite launcher, Meteor missile systems, the Eurofighter and the A400M military transporter.


AP Business Writer Greg Keller contributed to this report.

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