It valued the 7.5 percent stake to be sold at 2.0 billion euros (2.4 billion dollars).

Lagardere, a hi-tech and media conglomerate, said it was reducing its EADS holding by the same amount, from 15 percent to 7.5 percent.

The DaimlerChrysler statement said the decision was taken by the company board "in close cooperation" with Lagardere. It predicted the sale to be completed between January and April next year.

"With this step DaimlerChrysler will further focus on its core automotive business," DaimlerChrysler said.

But both groups said they were committed to remaining core shareholders in EADS, which owns 80 percent of the Airbus consortium and also has interests in military aircraft, satellites and other defence equipment.

DaimlerChrysler currently owns 30 percent of EADS, Lagardere 15 percent, the French state 15 percent, and the Spanish government 5.5 percent. The rest of EADS' shares are traded on international markets.

"Today, DaimlerChrysler and international investment banks have entered into a forward sales agreement on EADS shares," said the statement.

"The DaimlerChrysler Group will be lending the shares to the banks which then will place the shares in the market."

It said there would be no impact on 2006 profit figures but that it would boost 2007 net profit by about one billion euros.

"DaimlerChrysler and Lagardere SCA are determined to further support the continued success of EADS and remain core shareholders.

"The sustained increase of the EADS share price strongly underscores the substantial global investor interest and high demand for a participation in EADS."

In Paris, Lagardere said that the "shareholders pact which links the reference stakeholders in EADS remains unchanged" and that they remained "involved" in EADS.

DaimlerChrysler said the sale by the two groups "will broaden the shareholder basis of EADS and enhance its access to and position in the international capital markets. Thus it enables the company to enter into a new chapter of global successful growth as a logical next step in its development."

Recent French and German media reports have spoken of a possible complete or partial merger between EADS and French defence equipment firm Thales.

But there is also talk of a Thales and another French hi-tech equipment maker Alcatel merging their satellite making operations.

EADS had reportedly wanted to inject its satellite unit, Astrium, into the Alcatel-Thales deal, but has been kept out.

Community
Email This Article
Comment On This Article

Related Links
the missing link Aerospace News at SpaceMart.com