German minister predicts EADS stake deal soon

26 Nov, 2006

The German government expects to announce soon a plan to maintain the country's influence at aerospace group EADS should shareholder DaimlerChrysler cut its stake as planned, a German magazine reported.
In an interview with weekly news magazine Der Spiegel, German finance minister Peer Steinbrueck said talks were progressing on a consortium to take a stake in the group. "It will be announced in the coming weeks. We are well on the way," he said.
"It is in Germany's interests to keep the same size of stake in the company as the French. After all, Germany has invested a lot of money in the company and the development of Airbus."
Germany has been considering ways to safeguard its influence when DaimlerChrysler cuts its 22.5 percent holding by 7.5 percent. Chancellor Angela Merkel has already said she wants German-French parity. Her government is concerned a reduction of DaimlerChrysler's stake could diminish German influence when Airbus is about to push through substantial cost cuts.
Ever since EADS was created in 2000, the company has maintained a delicate balance between German and French influence in its shareholder structure and management.
Delays in the Airbus A380 superjumbo have forced EADS to examine changes to the way it produces large commercial jets. Berlin fears this could lead to job cuts in Germany. In the interview, Steinbrueck said: "Important production sites have been established in Germany. We have an interest in seeing that jobs stay in this country."

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