


People familiar with the matter said the talks involved a sweeping re-arrangement of government stakes, coupled with a staged exit of its industrial partners, reducing big shareholder blocks below 30% instead of more than 50%.



Shares in the Franco-German-led group rose over 2% as investors warmed to the promise of greater clarity over its shareholder structure, even though it may mean an overhang of stock ready to be sold by industrial groups in the short term.






France and Germany are expected to hold 12% each in the company, joined by Spain on around 4% and keeping he combined voting bloc below a 30% legal threshold.

Negotiators are attempting to choreograph a sequence of moves designed to consolidate state shareholdings while letting industrial partners out of EADS without hurting its share price, which has risen 7% this year on robust jetliner sales.

Germany will build its stake by buying 7.5% from a bank consortium, whose shares are under Daimler's voting control, and 4.5%  from Daimler which will part separately with a further 3%, sources close to the talks said.

That will leave Lagardere and Daimler with a further 7.5% each left to sell, but cash-rich EADS will announce a share buyback at the next shareholder meeting to help mop up excess stock and defend its share price, the sources said.



EADS declined to comment.

Germany has not been a direct shareholder before, with 22.5% of voting rights instead held by Daimler. On the French side, the state owns 15%, with 7.5% held by media group Lagardere. Spain owns 5.5%.

A German consortium called Dedalus, made up of private financial institutes and public sector owners including state controlled bank KfW, holds a 7.5% stake in EADS but the voting rights are part of those controlled by Daimler.

EADS is due to hold an investor meeting on Monday.


Shares in EADS were 2.5% higher at 26.535 euros by 5:17 a.m. EDT, among the top gainers on France's blue-chip CAC 40 index. The stock is up 8.8% in the last four days.



Under Dutch law that governs EADS, a group of shareholders cannot control more than 30% of the votes without triggering a mandatory bid for the whole company.

Reuters reported on Friday that France and Germany were close to a deal to shake up EADS after France agreed to hive off part of its 15% stake to preserve parity with Germany inside a core government shareholder group.

Under this arrangement, France is expected to place 3% in a non-voting structure in the Netherlands, where EADS is registered, while keeping economic control of the stock.



