Germany seeks clarity on EADS share

The German government has said wants to clarify rapidly how it would safeguard the delicate Franco-German balance within troubled…

The German government has said wants to clarify rapidly how it would safeguard the delicate Franco-German balance within troubled aerospace group EADS.

Core EADS shareholder Daimlerchrysler, which is in the process of reducing its EADS stake from about 30 per cent to 22.5 per cent, has signalled its intention to sell a further 7.5 per cent stake.

Germany is worried the sale could upset the shareholding balance that has existed with France since the company was formed in 2000 following a merger of the two countries' top aerospace firms.

EADS subsidiary Airbus is preparing sharp cost cuts in response to lengthy delays in its flagship A380 superjumbo jet programme. Berlin believes bilateral parity must be maintained to ensure looming job cuts are not concentrated in Germany.

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"We are presently considering a number of ideas, and the goal of all of these ideas is that we will maintain the strategic interest of Germany and parity with the French stake," German government spokesman Ulrich Wilhelm said.

He said all parties discussing the German plans were clear that an agreement on how to proceed must be reached "in the coming days".

Germany fears that its influence within EADS, Europe's largest aerospace and defence firm, could diminish if Daimler shares were bought by non-German investors.