Topic Author
Posts: 2459
Joined: Fri Nov 04, 2005 2:26 am

Spain Looks At Higher EADS Stake

Wed Jul 05, 2006 6:22 am

The Spanish government wants to almost double its stake in EADSand bring more of the European aerospace group's production to the country, an Industry Ministry source told Reuters on Tuesday.

"It's an existing aspiration of the government to raise its stake in EADS and consequently in Airbus," the source said.

He added that a report had been circulated in the ministry several months ago contemplating Spain increasing its holding to 10 percent from 5.5 percent.

Such an investment would cost about 1 billion euros ($1.28 billion), El Pais said.

"All we have to do now is wait and see if one of our fellow shareholders offers us such a package," the source said. "It's too early to talk about figures."

"The government could do this alone or together with the private sector."

The paper said that Spain wanted to win more production deals from EADS's Airbus unit, particularly in carbon fiber. More work could create between 800 and 1,000 jobs in Airbus Espana and increase annual turnover to 1 billion euros, it said.

Spain currently accounts for about 7 percent of Airbus's production, the paper said.
Our eyes are open, our eyes are open--wide, wide, wide...