Mon, Jul 03, 2006
But Will BAE Systems Accept It?
A third-party banking
firm called in to settle the pricing dispute betweeen EADS and
Britian's BAE Systems over the European consortium's buyout of
BAE's stake in Airbus has agreed on a final pricetag... but it may
not be enough to convince shareholders to sell.
EADS reports the investment bank Rothschild has determined the
price to be paid by EADS for BAE Systems' 20 percent stake in
Airbus is EUR 2.75 billion -- about $3.5 million US.
That price is over $1 billion less than BAE had been asking for
its Airbus stake prior to the announcement of delays in the the
A350 and A380 programs -- which have sent shares of EADS stock
tumbling.
London's Guardian newspaper suggests that given the
devalued price, it may make more sense for BAE to hold onto
its shares in Airbus -- for now -- and sell when the price
rebounds.
BAE Systems was expected to use some of the buyout money to
increase its investments in defense companies throughout the world,
especially in the US.
As Aero-News reported in May,
Rothschild was appointed by EADS and BAE Systems to determine the
price after the two sides were unable to reach an agreement. BAE
Systems exercised its Put Option regarding its stake in Airbus on
June 7, putting the matter into the hands of a third party.
While both sides are bound to Rothschild's valuation of the
selling price per the Airbus Shareholders' Agreement, the
transaction remains subject to BAE Systems' shareholder approval...
which may vote to scrub the deal entirely.
More News
DETRESFA (Distress Phrase) The code word used to designate an emergency phase wherein there is reasonable certainty that an aircraft and its occupants are threatened by grave and i>[...]
"General aviation is at the forefront of developing and introducing innovative technologies that will transform the entire aviation industry..." Source: Kyle Martin, Vice President>[...]
Direct Straight line flight between two navigational aids, fixes, points, or any combination thereof. When used by pilots in describing off-airway routes, points defining direct ro>[...]
Aero Linx: Women in Corporate Aviation Women in Corporate Aviation support individuals seeking career advancement and professional development in the business aviation industry. Me>[...]
“We would like to thank the many volunteers that help throughout the year to pull off the event, as well as the several reviewers, judges, and SURVICE staff that provide team>[...]