BAE to sell stake in Airbus to EADS: report

LONDON - BAE Systems will agree to sell its 20 percent stake in Airbus to the Franco-German aerospace firm EADS for 1.9 billion pounds (2.8 billion euros, 3.6 billion dollars), The Observer said Sunday.

By (AFP)

  • Follow us on
  • google-news
  • whatsapp
  • telegram

Published: Sun 3 Sep 2006, 8:07 PM

Last updated: Sat 4 Apr 2015, 4:14 PM

Unnamed sources from London’s financial district The City were quoted as saying that the British defence group’s chief executive Mike Turner will convene a board meeting ‘in the next few days’ to decide the issue.

A BAE Systems spokesman refused to comment on the report when contacted by AFP.

If the sale gets the go-ahead, the price would be significantly less than the valuation of the stake made by BAE Systems’ own accountants.

In July, an independent assessment by investment bank Rothschild put the value of the holding at 2.75 billion euros (3.5 billion dollars), far less than the company’s own estimate.

Turner appointed accountants PricewaterhouseCoopers to investigate the reasons for the low valuation.

BAE is thought to have decided on a ‘quick sale’ of its stake in EADS, which has an 80 percent share in Airbus, because of concerns over the development and soaring cost of the delayed A380 superjumbo.

Any sale would have to be approved by shareholders.

More news from