Recent US Takeover Bids Scuttled By Franco-German
The European Aeronautic Defense and
Space Company, EADS, is looking to invest in the US in order to
reduce its exposure to a weaker dollar, chief executive Louis
Gallois told the Financial Times.
"My main concern for the future is the weakness of the US
dollar," he said. "It is a sword of Damocles hanging over our heads
and it is a fantastic handicap against our only competitor in
Gallois adds US acquisitions, as well as partnerships and
alliances, had been identified as targets for 'Vision 2020', a
recently agreed corporate strategy that is to be presented soon to
A takeover move considered by EADS had been blocked by a
controlling shareholder on the grounds that the Franco-German group
could have lost management control of the operation, according to
Lagardere SCA blocked a bid by EADS for United Industrial Corp.
as reported by French daily Les Echos last month.
"We know it is not easy to manage a US company when you are a
European one, but we have to get access to the American market, to
produce in US dollars, and for that we must increase our footprint
in the US,” Gallois said.
The Vision 2020 strategy also calls for EADS to achieve a better
balance between commercial aircraft division Airbus and other
activities, including defense, space, helicopters and services.
Airbus currently accounts for 64 percent of EADS sales, compared
with the 47 percent for commercial aircraft activities at Boeing,
and EADS notably wants to boost the share of services in sales from
10 percent to 20-25 percent.
Recent corporate governance changes have eased decision-making
"For day-to-day operations it is a fantastic improvement. At the
level of the executive committee we are in a new world,”