German bank mulls EADS stake

16 October 2006

German state development bank KfW is reportedly planning to make a bid for a 7.5 per cent stake in aerospace group EADS.

German carmaker Daimler Chrysler is understood to be looking to reduce its 22.5 per cent stake in EADS, the parent company of Airbus, to just 15 per cent.

Magazine Der Spiegel reports that EADS workers are preparing to take strike action over a planned widespread restructuring program, aimed at reducing costs.

EADS announced last week that it now has outright control of Airbus after buying a 20 per cent stake in the troubled airplane maker from BAE Systems.

German economy minister Michael Glos is believed to be seeking a private buyer for the share in EADS, but the state-owned bank will purchase the 7.5 per cent stake if necessary.

The Financial Times Deutschland has suggested that the ministry would like a consortium of Airbus suppliers and subcontractors to buy the holding and the minister is currently meeting with German private investors about a possible sale.

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