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Tue, Jul 23, 2013

EADS Reorganization May Include Name Change

Company Said To Be Considering Rebranding As 'Airbus'

A reorganization of some of EADS' business units may include a re-branding of the European aerospace group to Airbus, according to insiders familiar with the matter.

Reuters reports that the company is likely to abandon its goal of striking a balance between civilian and defense revenue following the collapse of merger talks between EADS and BAE Systems.

The company has been conducting a strategy review which will be discussed by the company's board at the end of the month. But while an insider who wished to remain anonymous said there will be some big announcements from the review, it may not reveal details of the company's strategy.

While EADS has set a goal for a 50-50 split between commercial airliner and defense revenue streams, there has been increasing pressure to emphasize the civilian markets as airlines look to replace older, less fuel-efficient airplanes. The unstable state of the European economy is also said to be a contributing factor.

CEO Tom Enders reportedly launched the strategy review. The company is expected to take a centrist course with no options ruled out completely.

FMI: www.eads.com

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