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Fri, Mar 10, 2006

EADS To Buy Out BAE Systems Stake In Airbus?

Rumors are swirling around the European business community that EADS is in the process of drawing up plans to buy BAE System's 20 percent stake in Airbus, making the planemaker the solely-owned property of the European aerospace and defense group.

Such a sale would have significant ramifications throughout the aerospace industry. Analysts believe BAE is amicable to the buyout, as it would give the British aerospace manufacturer needed capital to pursue its interests in several as-yet-unnamed US companies.

The Guardian reports execs from both EADS and BAE have met informally to discuss the buyout, and that bankers are being consulted on the deal.

Currently, BAE's stake in Airbus is estimated to be worth about 3.5 billion Euros (approximately $4.17 billion US.) EADS reportedly has upwards of 5.5 billion eur available in cash to buy out BAE.

In addition to Airbus, EADS also has a controlling stake in such aerospace companies as Eurocopter, Arianespace, and Socata.

FMI: www.eads.net, www.airbus.com, www.baesystems.com

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