EADS may buy back up to $3bn worth of shares
European Aeronautic, Defence and Space (EADS) is considering a buyback of as much as €3 billion worth of stock to help mitigate the effect of shares being sold on the market as founding investors pare their stakes, according to people familiar with the plan. The buyback could happen next year, they added.
German car-maker Daimler, which has said it wants to cut its stake to focus on its main business, will sell as much as 7.5 per cent of EADS stock this month, depending on demand.
EADS is approaching the biggest overhaul of its ownership structure since the parent of Airbus SAS was founded in 2000.
While Germany would become an equal shareholder with France, neither government would gain sway over strategy, as chief executive officer Tom Enders seeks to avoid state involvement in the running of his company. – (Bloomberg)