EADS poised for new ownership structure: Report

PHOTO: EADS poised for new ownership structure: Report

BERLIN - European aerospace giant EADS, fresh from its failed merger bid with Britain's BAE Systems, will have a new ownership structure from 2013, a German newspaper reported on Tuesday.

Citing government sources, business daily Handelsblatt said that Germany and France would in future own 12 per cent each of the company, with Spain holding 5.5 per cent.

Private investors would hold the remaining 70.5 per cent of the firm, which has interests in building satellites, rocket parts, helicopters and defence, as well its main business of building airliners.

A deal laying out the future shareholder structure was expected to be finalised at the end of the month, Handelsblatt reported.

Currently, the French government and French media and defence group Lagardere hold a combined stake of 22.35 per cent, which is matched by a 22.35 per cent German stake held by Daimler and the KfW state bank.

Daimler has made it clear it wants to end its involvement in the firm, according to Handelsblatt and a co-head at the Lagardere group told analysts earlier this month that his firm would "very likely" exit EADS "in 2013".

A mooted US$45 billion (S$55 billion) tie-up between EADS and BAE Systems collapsed last month, reportedly after opposition from Berlin.

Media reports have said that Chancellor Angela Merkel blocked the deal as she was unwilling to allow Paris to have more influence in the company than Berlin and because EADS was unable to safeguard jobs in Germany.