France looks at selling part of stake in EADS in overhaul of aerospace group

The move, which could raise some 484 million euros, marks the first time France has contemplated selling part of its 15 per cent stake in EADS since the group was created from a merger of French, German and Spanish aerospace businesses in 2000.

EADS said the discussions focused on the repurchase of shares that the French government has already agreed to place beyond its voting control as part of the wider corporate shake-up.

The price for the off-market transaction would be 37.35 euros, equal to the amount obtained by the government’s previous industrial partner Lagardere, the French media group, for its own stake in EADS, the company said in a statement.

Under sweeping changes ratified by shareholders last month, France is keeping a core voting share of 12 per cent while ringfencing the remaining 3 per cent in an independent Dutch foundation, whose voting patterns it cannot influence.

The scheme is designed to avoid a combination of French, German and Spanish state shareholdings breaking through the 30 per cent threshold that would require a full takeover bid in the Netherlands, where EADS is registered.

France and Germany will keep voting stakes of 12 per cent each under the new set-up for EADS, with Spain at 4 per cent.

The move also comes weeks after France raised 449 million euros from the sale of a 3.12 per cent stake in aircraft engine maker Safran to help bolster the economy.

EADS said the transaction would form part of a share buyback announced on April 2. The company plans to pick an investment service provider to manage the 18-month programme.

n Serbia’s loss-making JAT Airways has secured a marketing alliance with Gulf airline Etihad Airways to share route-booking codes, stopping short of the equity tie-up mooted by Serbia’s government.

Mired in recession and struggling to find investors in the crisis-hit European Union, Serbia had hoped Abu Dhabi-based Etihad would buy a stake in JAT.

Etihad chief executive James Hogan said that any investment could be a long way off.