EADS could exclude shareholders from capital hike - German official UPDATE |
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Thu, 08 Mar 2007 18:32
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(updates with comments on co-CEO system)BERLIN (AFX) - EADS could exclude its existing major shareholders from a possible capital increase to maintain the balance of power between German and French investors, said Peter Hintze, the German government's representative for the air and space industry.His statements are in contrast to comments made by French finance minister Thierry Breton, in which he said the balance of power at EADS should shift in favour of France.The split between French and German major investors' voting rights should be 60:40, as opposed to 50:50 now, he said.The French government and Lagardere hold a combined 29.9 pct of shares, while German carmaker DaimlerChrylser AG has another 29.9 pct. The Spanish government holds a 5.5 pct stake, and the remaining shares are free float.DPA news agency cited sources close to EADS as saying the company needs about 5-7 bln eur in funds from external sources to cover costs to develop Airbus' A350 aircraft.In principle, the government sees a capital hike as a passable solution to funding the company's A350 aircraft development program, Hintze said in Germany's lower house, the Bundestag, today.He also said Germany's government is open to toppling the current system of co-chief executives in favour of distributing German and French power among managers below the chief executive.The company is currently led by Louis Gallois from France and Thomas Enders from Germany, who share the helm of EADS.maria.sheahan@thomson.comdpa/mas/tw/mas/cmlCOPYRIGHTCopyright AFX News Limited 2007. All rights reserved.The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.AFX News and AFX Financial News Logo are registered trademarks of AFX News Limited
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EADS could exclude shareholders from capital hike - German govt representative 