Paper Claims Russia Seeks 20 Percent Stake In Airbus

A spokesman with European Aeronautic Defence & Space Co Monday "strongly" denied French media reports it may sell of as much as 20 percent of its stake in Airbus to Russian interests, through state-owned banks or other possible sources.

The Associated Press reports an article on the website for French business magazine Capital states Russia interests are looking to build on the five-percent stake acquired last year by VneshTorgBank (VTB).

Adding credibility to that report is a visit Deputy Prime Minister Boris Aleshin will be making to Paris this week. Capital adds Aleshin has meetings scheduled with Airbus CEO Louis Gallois, and French President Jacques Chirac... but EADS says it's all whistling in the dark.

"We strongly deny" the report, said an EADS spokesman to Dow Jones Newswires.

Russian officials are actively seeking a larger role for the country in the aerospace field.

Despite its initial stake, the AP reports it's unlikely VTB is looking to build on its portion of EADS, however... as chairman Andrey Kostin told Les Echos newspaper last week he does not intend to increase the state-owned bank claim in Airbus.

Kostin is also reportedly not interested in a management position within EADS, according to the same report.

For moment, all of this is conjecture... but that was good enough for investors, who led a spike in the price of EADS shares Monday. EADS' stock price closed at $32.27 US, a 1.7 percent gain.

FMI: www.eads.int