Art, the story is sourced to EADS - they haven't denied it. Nor has BAe, actually - an un-named 'spokesman' saying, "It is simply not correct. It is way off target.."
is not a full-blown denial.
Mutu, the rumours about BAe selling out have been around for quite some time; about as long as the similar ones about Daimler-Chrysler wanting to sell its 30% shareholding. I think it's more likely that the balance sheet adjustment you mention was made to recognise BAe's 'put option' as a liability. If EADS hadn't done that, and they DO
have to buy out BAe this financial year, the purchase would presumably have had to be shown as a revenue item in the current year (which would likely have eliminated EADS' 2006 profit).
"Once you have flown, you will walk the earth with your eyes turned skywards.." - Leonardo da Vinci