Russia's VTB buys into aerospace firm EADS

Russian state bank Vneshtorgbank has accumulated a 5 percent stake in European aerospace firm EADS, a Russian business daily reported, helping lift shares in the Airbus planemaker on prospects of new opportunities in Russia.
Quoting sources close to the bank and government officials, Vedomosti said on Tuesday the former Soviet foreign trade bank, which is Russia's second-largest bank, spent around $1 billion buying EADS shares on the market.
VTB and EADS, the maker of Airbus planes, declined to comment on the report, while the French market watchdog AMF says it was unaware of the VTB move.
EADS shares were up 2.4 percent at 23.18 euros at 0900 GMT after having risen as much as 3 percent earlier on the report.
Some traders pointed at new business opportunities in Russia for the maker of Airbus, but some analysts were sceptical.
"It is probably going to worry institutional investors if you have yet another party taking a big stake in the company. It is not helpful. They already have a foot in Russia, so this would not change the situation," said an analyst in London.
EADS, the leading European aerospace group, is keen to expand in Russia, where it is competing with US rival Boeing for a multi-billion-dollar contract to renew the ageing fleet of Russian national carrier Aeroflot.
The report comes as British firm BAE Systems considers selling its 20 percent stake in Airbus to EADS.
It also comes as Russia plans to relax its curbs on foreign investment in commercial aviation projects to allow foreign capital to own stakes of up to 49 percent. Currently foreign companies can only own less than 25 percent.
The move appears in line with a trend of consolidating state control over strategic Russian industries and then inviting in foreign companies as minority shareholders. Meanwhile Russian firms, especially in the booming energy and commodities sector, are on the prowl for Western assets.
EADS is poised to become the primary foreign partner in the newly created state-controlled aircraft holding firm Russian United Aircraft Corporation, set up in February in an effort to consolidate Russian plane makers into one body, after it bought a 10 percent stake in private combat plane maker Irkut.
Irkut, one of two makers of Sukhoi fighter jets, is expected to provide the core of the Unified Aircraft management team, analysts say.